Tag Archive | "Car Insurance"

Facts About Car Insurance in India

  • Easypolicy
  • 08 Aug 2016

To have the best insurance Policy for your car you need to know some facts about car insurance in India. The knowledgeable buyer makes prudent choices and saves money. Knowledge regarding the subject can be acquired either by discussing with concerned agent or through internet, insurance journals etc. This article is intended to provide basic but important information to a car insurance buyer.
The top 10 Car Insurance Facts in India, which can be very handy for car insurance buyers are discussed below.

1 As per Motor Vehicles Act, 1998 getting Third Party Liability Insurance is obligatory in India for driving your car; otherwise you can be fined by the traffic police if they catch you driving in an uninsured vehicle. It covers the cost of loss suffered by the third party because of Accident by your vehicle.

2 Your options are two; either go for third party insurance only policy or a Comprehensive insurance policy. A comprehensive car insurance policy covers the financial losses suffered by you as well. To make your comprehensive car insurance policy stronger you may attach several add-ons or extra benefits by paying extra premium. The list of add-ons is quite long, some popular ones are Zero-dep, engine protector, roadside assistance, invoice cover, NCB protector etc. Your car Insurance Agent must be able to explain these to you in detail and also suggest you what all add-ons you should take.

3 Car insurance can easily be compared, studied and bought online. Online transactions are transparent and policies sourced through internet are cheap as no involvement of middlemen saves upon commission. There are many insurance web aggregator websites available on which car plans can be compared very conveniently in an unbiased way and that too free of cost.

4 Validity of car insurance is only for a year and has to be renewed before expiry. Even a day’s delay can cause your Insurer to reject your renewal or demand fresh inspection of the vehicle. That is the reason your insurer and various other agents start calling you from one month before your insurance expiry date to ensure you get it done on time.

5 The Premium is decided by many factors like location, make, model, engine type, current condition, IDV (Insured Declared Value), gender, age and marital status of the car owner etc. Based on these factors the Risk to the car can be estimated and based on that the premium is calculated. For example location of the vehicle can impact its possibility of getting damaged to a great extent; a car which runs in a village with scant traffic is less likely to meet an accident in a busy metropolitan city. Similarly, married people generally drive more carefully than singles.

6 In the event of accident, the car owner should immediately inform the insurer about the incidence and file FIR in case of severe damage to the car by third party. Such prompt action is required to start the Claim process. 

7 Accidental claims are settled through cashless or Reimbursement mode. The settlement mode depends on your insurer and its tie-ups with the motor garages. Just like in case of Health Insurance policy, if you get your car repaired from a network garage you are likely to get cashless settlement of your claim. A wider and stronger network is a big selling point for car insurers. However, you must ensure that car garages in which you frequently get your car repaired falls in the network of your car insurer.

8 For every claim free year, the insurance company gives you a discount in premium called No Claim Bonus or simply NCB to encourage you to drive carefully and avoid claims. At the time of renewal you get this discount on premium. You can also ask for No claim bonus even when you are switching insurers. In other words your NVB earned is not harmed even when you change the insurer. You can get up to 50% or even more discount on premium under NCB if you have 5 or more consecutive claim free years.

9 The Insurance Company holds the right to reject or disallow the claim, if the accident falls under the exclusion category, there are geographical limitations in your policy, if the accident happens out of those boundaries, and the insurance company can reject the claim.

10 Installation of LPG/CNG kits should be declared and intimated to the RTO or RTA and the insurer. Installation of such kits can affect the inherent risk to the car. Thus, subsequent permission should be taken from the insurer to have smooth claim process.

selling your car-don’t let go your insurance benefits

  • Easypolicy
  • 12 Sep 2012

When anything happens to your prized possession, your car, do you think you should worry? According to the provisions of the India Motor Vehicles Act 1988, it is mandatory in India to have motor insurance irrespective of what the purpose the vehicle is used for. So, you need not worry as the Insurer will take care of the damages caused. With car insurance, you get protection of your vehicle from unforeseen risks.

What Should You Do with Your Insurance if You Sell Your Car?
If you are selling your car, do not let go your insurance benefits. Irrespective of whether you buy vehicle insurance online or from an agent, you can avail all the benefits as mentioned in the policy.

You can get your car insurance Policy cancelled or keep the sold vehicle on your policy until you find a replacement shortly. Yes, you can transfer your insurance to another vehicle of yours. Lapses in a policy may require you to pay higher rates; keeping the policy will let you avoid lapses in coverage. Align the date of cancellation with the date of purchase. Alternatively, you may transfer the insurance in the name of the new owner.

Do remember to let your motor insurance company know that you have sold the car and no longer have possession of it. It may happen that the buyer of your used car may not get it registered immediately after buying it. In such a situation if anything happens with the vehicle, you will be legally liable for the damages caused. Notifying the insurer about selling of your car will keep you away from such liabilities.

If you sell your car, your registration gets legally cancelled by the RTO. Your car may be Insured elsewhere given the fact that motor insurance is mandatory. Once you get your policy cancelled, notifying your insurer, the balance of the Premium gets refunded to you provided you have not made any Claim during the policy period.

No Claim Bonus (NCB)
How old was your car? Have you made any claim benefits? All car insurance plans, whether it is liability only or comprehensive, come with No claim bonus benefits. If you are selling your car and have not made claims that have been accumulated over a year or couple of years, do obtain a no claim bonus certificate from the insurer.

Transfer of NCB to Your New Car
The no claim bonus accumulated over the car that you have sold can be transferred to your new car. You should obtain the NCB certificate from your insurer when you sell your old car. You can then get the benefits transferred to your new car within the next three years.

Where to Buy Vehicle Insurance?
Buying online car insurance, especially at an insurance aggregator’s website is preferred by many a buyer. This is because at such a platform, the buyer can get quotes and compare all available car insurance plans and accordingly choose the best. You cannot have access to all car insurance plans with the agent or at the corporate site of a particular insurer. At such an online platform, you can buy vehicle insurance in a matter of minutes using your credit card or debit card or even with a cheque.

When you buy vehicle insurance, do consider all factors and benefits associated so that even when you sell your old car, you can continue enjoying the benefits associated. As aforementioned, for the best choice, buy online car insurance, especially at an insurance aggregator and facilitator’s website.

registering vehicle insurance claim

  • Easypolicy
  • 12 Sep 2012

Registering a vehicle after damage is a must to get the vehicle insurance claim, however big or small the damage may be. This bitter truth has been the cause for many losing their insurance Claim even though they had a valid vehicle insurance policy. In fact, you must notify about the damage to the insurance provider just after the incident which caused the damage. Making a call to the call center or customer service cell would give you a head start in retrieving the vehicle insurance claim.

Your motor insurance company would like to know the type of damage and how it had been caused before proceeding with the claim process. While registering the vehicle insurance claim, such information is received by the insurance provider that allows it to process the claim.

When to Register Motor Insurance Claims

Major car insurance plans require claims to be registered when there is damage to the car, car owner, or any other person (third party) involved with the car. For instance, you need to register in case:
  • Car or vehicle is damaged in an accident. This includes damage to the exterior car casing or damage of body parts.
  • Bodily injury or death occurs to the third party.
  • Bodily injury or death occurs to the Policyholder or passengers in the vehicle.
  • Bodily injury or death occurs to the driver of the vehicle, cleaner, or mechanic.
Steps to Register Vehicle Insurance Claims

In case of accidents, it is essential to register vehicle insurance claims so that the Insurer would estimate the damage and decide how much to provide as compensation. For different kinds of damage, different steps are required to be followed. However, some basic steps are common for all.

If the car owner has met with an Accident while traveling in a car, he or she must pursue the following steps to register the claim of his car as per car insurance plans available in India:

  • Name the driver and provide his or her driving license during the accident.
  • Note the time and location of the place of the accident.
  • Take a note of the other vehicles involved in the accident.
  • Take contact numbers and names of eye witnesses present during the accident.
  • Contact the customer care cell of the insurance provider.
  • Provide details of the accident along with insurance plan credentials. This includes vehicle type and model, vehicle registration number,  motor insurance policy, and so on.
  • File-up the claim number or reference number or receipt allotted by the customer care.
  • Acquire necessary documents and forms from the customer care to avail the claim.
  • Acquire details of the garage or other facilities which is recognized by the insurance provider and acceptable to you.
  • File an FIR at the police station on the accident or damage done to your vehicle. In case of car theft or pilferage of vehicle parts, an FIR needs to be filed in.
For vehicle theft claim registration process, the no-trace report from the police is required along with the warranty card of the car, service booklet, and other credentials of the car. The FIR on theft must also be furnished.

Points to Note

Many car owners buy vehicle insurance as a protection cover for potential damages done to the car while traveling. However, the claim cannot be done unless one registers the claim through appropriate channels. In case of cashless repair, it is necessary to take the car to the authorized service center for cashless service recognized by the insurer. Don’t forget to keep all the receipts properly filed up in case they are needed as a proof of evidence.

Once, the registration of the vehicle insurance claim is done, the next step now lies with the insurer who would send an authorized person to check the damage and estimate the compensation amount.