Motor Insurance-Overview

Today, getting your own vehicle and commuting using your own vehicle has become a necessity rather than a luxury. Short distance commute can be achieved easily by motorbikes and other two-wheelers whereas long-distance commute needs a four-wheeler. Travelling with a two-wheeler is effective in the event of heavy traffic and it is also fun, especially for the younger generations; whereas commuting with a four-wheeler gives comfort.

However, several risks are associated when you are commuting either by motorbike or by a car on the Indian roads. So, it's important to guarantee the protection of your vehicle against any such risk factors which is feasible by vehicle insurance or motor insurance.

Vehicle insurance or motor insurance is definitely an agreement between the insurance carrier and also you for ensuring the security of the vehicle in the event of an unprecedented incident on the roads. Vehicle insurance is a mandate for all vehicles that are being used around the Indian roads. The main objective of vehicle insurance or motor insurance is to make sure the protection of the vehicle against any damage brought on by natural or man-made calamities. With the recent amendments designed to the Automobile Act, 2021 it is extremely important to understand about the different aspects associated with Motor Insurance.

Importance and benefits of purchasing a vehicle insurance plan:

So, why do you need motor insurance or vehicle insurance? Let us get the major reasons and advantages of having vehicle insurance.

  1. Reduces liabilities

    Third-party liability insurance coverage is required in India. In case of any sort of accident brought on by you, the third-party insurance will cover all of the expenses incurred in the treatment or repair of the 3rd party person or vehicle.

  2. Payment for damages

    The cost incurred in repairing vehicles i.e. an automobile or perhaps a motorbike is definitely high. There can be accidents as well as your vehicle will require repairs. When this occurs, for those who have vehicle insurance you will not have to pay the expenses from your pocket.

  3. Hospitalization expenses

    Some road accidents could be major incidents and can cause serious injuries. The treatment and hospitalization expenses incurred can be excessive. For those who have vehicle insurance or motor insuranceand you've chosen the medical expenses add-on, you do not need to bother with these expenses and can focus on your treatment.

  4. Compensation for your family

    There could be some serious road accidents in which the owner of the automobile passes away. This would be dependent on financial emergency for the family members of the demised person. By vehicle insurance, the insurance provider can provide compensation towards the group of the demised person.

  5. Online vehicleinsurance

    When you buy online vehicle insurance, then it is usually cheaper while there is no commission that should be paid towards the distributors.

  6. Reduced stress level

    Vehicle insurance will reduce your levels of stress and you could enjoy reassurance.

Reasons to buy motor insurance with a quantity of road accidents

The deteriorating condition of the Indian roads, rise in the number of vehicles on the highway and also the negligent attitude of the young drivers towards traffic rules would be the major reasons for that increase in the number of accidents in India.

Due to these reasons, many insurance providers in India have included several advantages along with the motorinsurancepolicy. Facilities like cashless claims at garages which are contained in the network of the insurance provider, towing facility, roadside assistance, invoice protection cover, accident cover; consumables cover, etc. are being offered as add-ons to vehicle owners for ensuring all-round protection of the vehicle. 

According to some global set of the data of road accidents by WHO,

  1. The number of road accidents in India was 129,965.
  2. The quantity of road accidents in China was 80,500.
  3. The number of road accidents in the united states was 60,780.
  4. The number of road accidents in Russia was 40,890.
  5. The quantity of road accidents in the UK was 7689.

This data, when represented in the form of a pie-chart, implies that the highest percentage of road accidents occur in India. The requirement for road safety awareness and vehicle insurance is most required in India.

Different Kinds of Car insurance policy Policies in India:

Here is really a listing of different types of motorinsurance policies that are offered in India:

  1. Third-Party Vehicle Insurance Policy

    Third-party vehicle insurance policy is mandated by the Government asia to ply the vehicles on the Indian roads as per the Cars Act, 1988. A third-party liability only insurance policy provides coverage for that damages and also the loss that has been suffered by a third-party person, property or vehicle by your vehicle.

    This is an insurance plan which saves the owner all legal liabilities in the event of any sort of accident. The insurer bears the expenses arising out of the eventuality so long as the owner includes a valid third-party motor insurance policy during the time of the accident.

    A third-party vehicle insurance policy covers any damage completed to a third person’s property or vehicle or any bodily problems for a third-person resulting in death, disability or dismemberment or any legal liabilities as a result of exactly the same towards the owner.

  2. Comprehensive Vehicle Insurance Policy

    A comprehensive motor insurance policy provides for complete protection of the vehicle towards damages accomplished for own vehicle together with third-party coverage. This complete coverage includes any damage that's been caused towards the car that is insured, any third-party liabilities and personal accidents.

    The different types of comprehensive vehicle insurance coverage is:

    1. Private Car Insurance

      Private Car insurance Policies covers any damages caused for your own car or perhaps a third-party car due to accidents occurred. To acquire a good car insurance policy, you need to compare auto insurance policies online and pick a qualified one.

    2. Two-wheeler Insurance

      Two-wheeler insurance provides coverage for just about any damages caused to scooters or motorbikes and its riders during accidents. It also covers any damage caused to two-wheelers because of natural calamities or man-made disasters like theft, riots, etc. Generally, there are two kinds of two-wheeler insurance plan i.e. Comprehensive two-wheeler insurance policy and liability-only two-wheeler insurance plan.

    3. Commercial Vehicle Insurance

      Those vehicles that are employed for business purposes are known as Commercial vehicles. Commercial vehicle insurance is readily available for vehicles for example buses, taxis, ambulances and other vehicles like shovels, tractors, etc. By commercial vehicle insurance, coverage is supplied by the insurance provider for damage caused to the vehicle due to accidents.

  3. Long term vehicle insurance policy

    A long-term vehicle insurance policy is a that gives coverage for more than a year. In the case of two-wheeler insurance plans, long term comprehensive coverage can be obtained for two or three continuous years. For auto insurance plans, however, long term comprehensive coverage is not available.

    Moreover, for brand new vehicles, long term third party liability coverage is essential. This coverage should be availed the following –

    • For new two-wheelers, long-term third party liability cover 5 years is mandatory
    • For new cars, long term third party liability cover for 3 years is mandatory 
  4. Bundled vehicle insurance policy

    A bundled vehicle insurance plan is one that provides long-term third party coverage and annual comprehensive coverage. This type of policy can be obtained for brand new vehicles. The different sorts of bundled plans available for sale are listed below –

    • Bundled two wheeler insurance coverage wherein the 3rd party coverage is provided for 5 many own damage coverage is offered for 1 year
    • Bundled car insurance plans wherein the 3rd party coverage is offered for 3 years and own damage coverage is offered for 1 year
  5. Pay-as-you-drive car insurance policy plans

    Launched under the Sandbox initiative of the IRDAI, pay-as-you-drive motor insurance plans are flexible policies where you can insure your vehicle only if you use it. Coverage is allowed for both 3rd party and own damage liabilities. Premium depends upon the usage of the automobile that you declare when purchasing the program. Because the coverage is usage based, the premiums are quite low. Presently, merely a number of insurance providers are offering this kind of policy.

Inclusions of Motor Insurance Plans in India:

Let us know of the damages that are covered under motor insurance or vehicle insurance.

  • Any damage caused towards the vehicle due to natural calamities like earthquakes, storms, cyclones, floods, lightning, landslide, etc. are covered
  • Any damage caused to the insured vehicle due to man-made calamities like fire, self-explosion, riots, malicious acts, strikes, etc. are covered 
  • The loss or theft from the vehicle that's been insured is covered under vehicle insurance.
  • Any 3rd party liabilities incurred by the third party person or vehicle throughout an accident is covered under vehicle insurance. Such liabilities might arise if any 3rd party is physically injured, killed or if any third party rentals are damaged through the insured vehicle. 
  • Damages suffered once the vehicle has been transported from one place to another through air, water, or land.
  • Vehicle insurance also offers personal accident cover for the insured vehicle’s driver/owner. This coverage allows additional benefits payable in the case of accidental / accident death or permanent disablement. The sum insured is INR 15 lakhs. The personal accident cover, however, isn't mandatory. If you have an existing personal accident cover independently or with another policy, you can skip this cover. If, however, you are not insured under any personal accident cover, you have to buy the coverage offered by vehicle insurance coverage. 

Exclusions of Motor Insurance Plans in India:

The below-mentioned damages caused to some vehicle have no coverage under vehicle or motor insurance.

  1. Any damage caused to a vehicle due to the effect of alcohol or drugs around the driver.
  2. Damage caused to the vehicle due to wear and tear or ageing from the vehicle.
  3. Any damage caused to the vehicle being driven by a driver without a valid driving license.
  4. Any electrical or mechanical introduction to the automobile.
  5. Any damage caused to the vehicle away from boundary asia.
  6. Damages suffered when the policy has lapsed
  7. Self-inflicted or deliberate damages
  8. Consequential losses
  9. Damages because of war, mutiny or nuclear perils
  10. Damages suffered when participating in a criminal or hazardous act

List of the most common add-on covers in comprehensive motor insurance:

There are several add-on plans which may be as part of your motor insurance policy to boost the coverage provided. A few of these add-on covers can be mentioned below.

  1. Zero depreciation cover

    In the situation of a claim, depreciation suffered through the areas of the car isn't covered. The insurer deducts the depreciation charges after which settles the claim. This results in out-of-pocket expenses for that policyholder and cuts down on the claim amount. However, whenever a policyholder opts for this add-on, the effect of depreciation is negated. The entire worth of the repaired or replaced parts pays as claim.

  2. Key replacement cover

    In case of the key being lost, the policyholder is going to be eligible to claim reimbursement for that price of the substitute key.

  3. Roadside assistance cover

    Roadside assistance cover helps in assisting at remote locations in the event of issues like flat tires, fuel issues, battery problems, etc. In case your vehicle breaks down in the center of an online location, you can call the insurer’s helpline number, 24*7, and obtain any kind of assistance that you need. 

  4. NCB protect cover

    In case of no claims made by a policyholder during a policy term, the policyholder is rewarded having a no claim bonus. The bonus starts from 20% and may increase as much as 50% should you don’t make a claim in successive policy years. You can use the accumulated bonus to assert a premium discount during the time of renewals. However, when there is even a single claim under the policy, the entire no claim bonus is lost. The NCB protect cover protects the accumulated no claim bonus even when you make a claim.

  5. Engine protection cover

    By the engine protection cover, if there is any damage caused to the vehicle’s engine, because of water seepage, then your repair or rc will be covered by the insurance carrier.

  6. Return to invoice cover

    If your vehicle is completely damaged or if it is stolen, the insurer would pay the invoice worth of the vehicle as claim when you purchase this add-on.

  7. Personal accident cover passengers

    Through this add-on you can extend the personal accident cover the passengers travelling along with you within the vehicle. If the passengers suffer accidental / accident death or disablements, the coverage would pay a lump sum benefit.

  8. Consumables cover

    This add-on covers the price of consumables used at the time of repairs that is otherwise excluded from coverage. 

  9. Medical expenses cover

    If you choose this add-on and you are hospitalized following an accident in the vehicle, the medical costs incurred on treating your injuries could be covered.

  10. Loss of private belongings cover

    Under this add-on losing or theft of private belongings in the vehicle is covered. The insurer reimburses you for that loss suffered. 

Different plans offered with features and coverage

As there are many insurance providers providing various motorinsurance policies in India, let's list down the main ones.

  1. Tata AIG Car insurance policy Policy

    Some of the motorinsurance plans provided by Tata AIG are mentioned below.

    • Auto Secure Two-wheeler package policy
    • Long Term Two-wheeler package policy<
    • Auto Secure –Private car package policy
    • Auto Secure commercial vehicle package policy

    The major features of the motorinsurance plans provided by Tata AIG are listed below.

    • Personal accident covers for owner and driver
    • Coverage against third party liabilities
    • Coverage against loss or damage caused to the insured vehicle by natural or manmade calamities.
    • Inclusion of countless add-ons for providing comprehensive coverage to policyholders.
  2. Reliance General Car insurance policy Policy

    Reliance Insurance provides various plans associated with car insurance policy for example two-wheeler insurance plan, Private Car Insurance policy, Commercial vehicle insurance plan, etc. The main features related to Reliance motor insurance policy are listed below.

    • Coverage against damage caused to the vehicle because of natural calamities like fire, lightning, flood, earthquake, flood, cyclone, etc.
    • Coverage against damage caused towards the vehicle because of manmade calamities like theft, riots, strikes, terrorism, malicious activities, etc.
    • Instant acquisition of policy online without any hassle and paperwork.
    • Cashless use of garages that are covered underneath the network of Reliance India Co. Limited.
    • Motorinsurance renewal can be done online without any paperwork.
    • 24×7 roadside assistance add-on covers for the policyholders.
    • Discount as much as 70% on insurance premium for car insurance and two-wheeler insurance plans.
    • Very quick claim settlement for the policyholders.
  3. HDFC Ergo General Motor Insurance Policy

    HDFC Ergo is among the popular motorinsurance providers in India. A few of the auto insurance policies offered by HDFC Ergo are Long Term car insurance, Third-party liability auto insurance, Single year car insurance, Long-term comprehensive two-wheeler insurance plan, Two-wheeler liability only insurance, Standalone motor own damage cover-two- wheeler, etc.

    • HDFC Ergo vehicle insurance policy provides coverage against accidental damages, thefts, along with other manmade calamities.
    • Coverage against third-party liabilities incurred for both i.e. person and vehicle.
    • HDFC Ergo vehicleinsurance policy provides personal accident cover.
    • Add-ons coverage such as NCB cover, Engine protects cover, Key replacement cover, Emergency assistance cover, return to invoice cover, etc.

    • Customer support can be obtained always 24×7 for efficient query resolution of consumers.
    • Paperless and boundless work procedure. 
  4. Bajaj Allianz General Motor Insurance Policy

    Bajaj Allianz offers vehicle insurance plans for two-wheelers, four-wheelers, commercial vehicles, etc. The major features and benefits offered by Bajaj Allianz’s vehicle insurance coverage is mentioned below.

    • Instant online insurance policy purchase and renewal.
    • Policyholders can avail NCB cover around 20%-50% discount on insurance costs.
    • 24×7 customer care to assistance with claim settlement and other the process of the motorinsurancepolicy.
    • Cashless claims can be created at garages that come underneath the network of Bajaj Allianz.
    • Several add-ons, emergency assistance cover, and good quality services.
  5. Royal Sundaram Car insurance policy Policy

    Royal Sundaram is a well-liked name in the car insurance policy market asia. Vehicleinsurance policies such as two-wheeler insurance plan, commercial vehicle insurance, auto insurance, etc. are the eminent insurance plans provided by Royal Sundaram.

    • Coverage against natural calamities just like a landslide, floods, fire, terrorism, etc.
    • Coverage against accidents along with other manmade calamities like terrorism, theft, burglary, malicious acts, etc.
    • Personal accident cover is supplied to the policyholders.
    • Coverage for just about any third-party liabilities incurred.
    • Cashless claims in network garages

Parameters which help decide the premium:

Certain eminent parameters that really help in determining the premium of your vehicle insurance are mentioned below.

  1. Make, Model and chronilogical age of the Vehicle

    The premium of the vehicle depends on the make, model and the age of the vehicle. The premium for motor insurance policy differs from one vehicle to another with respect to the model of the automobile. Since the models of vehicles aren't the same as each other, the insurance coverage fees are also different.

    Even petrol and diesel variants of the same vehicle have different insurance costs.

  2. IDV

    The Insured Declared Value or even the IDV is the market price of the vehicle adjusted using the vehicle’s age-based depreciation. The IDV also represents the utmost claim liability from the insurance provider when it comes to own damage claim. The insurance coverage fees are, therefore, high for those vehicles that have a higher IDV.

  3. Geographic location

    The insurance premium for vehicles belonging to those locations is higher where there are more risks associated with natural and man-made calamities. Similarly, if your vehicle is registered inside a metro city, the premium could be higher compared to those in non-metro cities.

  4. Add-ons selected

    Additional covers increase the scope of coverage from the motor insurance plan. So, should you opt for add-ons, your automobile insurance premium would increase.

  5. Type of policy

    Third party plans have lower premiums due to the limited scope of coverage that they offer. However, comprehensive vehicle insurance coverage offer a wider scope of coverage and charge a greater amount of premium.

  6. Age of the vehicle

    Older vehicles have reduced values and so their premiums will also be lower when compared with newer ones.

  7. Claim history

    If you are renewing a current motor insurance policy, the claim history would also modify the premium. If you haven't made claims in the last years, you are able to claim a no claim discount that will lessen the premium amount. However, if claims have been made, the no claim discount wouldn't be available and the premiums could be higher.

  8. Discounts available

    Motor insurance plans allow different types of premium discounts. If you're able to acquire the discounts, the premiums would be lowered.

How to lessen the premium for any motor insurance plan?

Let us take a look at some of the easy methods to lessen the premium for a motor insurance policy.

  1. Installing anti-theft devices in vehicles

    By installing anti-theft devices inside your vehicle, you are lowering the likelihood of theft of the vehicle. As the vehicle isn't exposed to the risk of theft, your insurance provider charges you a lower premium from you.

  2. No claim bonus

    There are several discount possibilities around the premium of car insurance. If you have a good claim history and you are picking out a comprehensive motor insurance policy, you get a maximum of 50% no-claim bonus which allows you to lower your premium.

    Tip: Don't claim for smaller claims, but save your NCB so that your overall premium would cut back.

  3. Deductibles

    You may also choose to opt for the voluntary deductible as it will reduce your premium amount for a car insurance policy policy.

  4. Opting for riders carefully

    You should be wise while selecting your riders for the vehicle insurance. You should only choose those riders which will be helpful to you actually instead of selecting any random rider.

  5. Compare policy online

    You should compare vehicle insurance plans offered by different insurance firms online to have an idea of the benefits provided by different policies and the premium prices.

  6. Membership of AAI or WIAA

    If you are having a membership in AAI or WIAA , you'll have a chance to avail discount on vehicle insurance costs.

Benefits of comparing policy online:

Some of the major benefits of comparing vehicle insurance online are mentioned below.

  1. By comparing vehicle insurance online or car insurance policy online, you're able to know at length concerning the benefits and features offered by the motor insurance policy. You may also know of the various add-ons and the coverage supplied by the policies. This will make easier for you to decide on the best vehicle insurance providing maximum coverage.
  2. A comparison of car insurance policy online allows you to know in detail concerning the claim settlement ratio of numerous insurance firms. You are able to compare the claim settlement ratio of numerous insurance firms and choose the one using the highest ratio for yourself.
  3. When you compare motor insurance online, you can have understanding of the benefits offered by different insurance firms and the premium they charge. Based on your requirements, you can select the policy which provides maximum coverage in a reasonable premium.
  4. If you're comparing motor insurance online, you feel aware of the various discounts provided by insurance firms. These discounts are quite helpful as they help in premium reduction.

How to check policy online?

In to compare a vehicle insurance plan online, you have to follow the following steps:

  1. Log on tohttps://www.turtlemint.com/
  2. Click on the “car” tab to check auto insurance policies on the internet and around the “bike” tab to compare two-wheeler insurance policies online
  3. For renewing old vehicles, make the car number to locate plans or also click “Continue without Car number”
  4. With car number:
    1. Your car’s make, model and petrol/diesel variant are extrapolated from the motor vehicles registration details
    2. You have to select the exact variant from the vehicle after which click “next”
    3. Then select “expiry date” of the insurance policy
    4. Then select the previous kind of policy from comprehensive and third-party
    5. Last year claim history, in order to determine NCB
    6. And finally, mention the last policy NCB and the insurer’s name and then click “next”
    7. Then complete your company name and phone details then click “next” or you could “skip for now” as well
    8. Then you have the listing of plans that you can choose from
  5. Continue without Car number:
    1. Fill in the registration location
    2. Then choose from renewing your policy or buying a new policy
    3. Fill within the details of your vehicle’sMake and model
      1. The year of manufacturing
      2. Fuel type- petrol/diesel
      3. Vehicle variant
        And then click on “next”
    4. Then fill in your name and phone details then click “next” or you might “skip for now” as well
    5. Then you have the listing of plans that you can choose from

How to file an electric motor claim with a list of documents required?

For filing an electric motor claim, it is necessary to follow along with the claim process to ensure that claim is settled easily and at the first. The procedure, thus, is really as follows –

  • Inform the insurance company soon after a claim. The insurer would register your claim, supply the claim reference number as well as inform you about the nearest networked garages for getting cashless repairs
  • If your automobile has suffered any damage, take it to the nearest preferred garage for cashless benefit
  • The insurer’s surveyor would go to the garage and measure the damages
  • The surveyor would make a claim estimate and submit it towards the insurer
  • Based on the surveyor’s estimate, cashless approval would be given by the insurer
  • Once the approval is received, the garage would repair the vehicle and also the bills could be settled directly through the insurer
  • If, however, you choose a non-networked garage for repairs, you would have to pay for the repairs from your pockets. Following the vehicle is repaired, file claims with the insurer and also the company would reimburse you for that expenses incurred
  • In the situation of 3rd party claims, file a police FIR. The motor accidents tribunal would assess the claim and announce the liability. The insurer would settle the claim directly using the third party
  • In the situation of theft of the vehicle, file a police FIR. If the police are not able to trace your automobile, they'd issue a non0traceable certificate. Submit this certificate to the insurer along with other claim documents for claim settlement

Certain documents associated with vehicle insurance details that need to be submitted for processing the motor claim are listed below.

  • Driving License from the driver
  • Registration Certificate Book
  • Police Report
  • Final bill from the repairers
  • A fitness certificate in the event of commercial vehicles

Frequently Asked Questions:

  1. How are you able to calculate the motor insurance premium?

    Motor insurance premium could be calculated using a good car insurance policy premium calculator. This is readily available on the websites of insurance aggregators and could be used for premium calculation.

  2. Can motor insurance renewal be done online?

    Yes, motor insurance renewal can be achieved online by signing in towards the website within your insurance carrier.

  3. What is IDV?

    IDV is understood to be an Insured’s Declared Value and it is referred to as your vehicle’s current market value. The IDV of the vehicle is a vital element in managing your vehicle insurance premium.

  4. Is 3rd party insurance policy mandatory?

    Yes, 3rd party insurance policy is mandatory in India.

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