Motor Vehicle insurance is the most important document for all vehicle owners/drivers. Its main objective is to give complete protection against physical
damage or loss sustained by the insured vehicle from natural and man-made calamities. Apart from the own-damage cover, the auto insurance policy also
provides coverage for third-party liabilities, arising out of any accidental damage, injury, or death of a third party
Motor insurance is an insurance policy for four-wheelers, commercial trucks, two-wheelers, and other road vehicles. Motor insurance online provides financial protection against physical damage or cover for natural calamities and any loss or damages sustained by the policyholder in an unforeseen accident. Motor insurance is mandatory for all two-wheeler and four-wheeler vehicles such as cars, bikes, scooters, trucks that are plying on the roads in India. Vehicle owners can avail motor insurance even for commercial vehicles as well.
Motor Insurance can be broadly classified under below heads:
1. Car Insurance : Car Insurance gives coverage against accidental loss or damages to own car or a third party. While choosing a car insurance policy, a person should always compare the premium offered by various insurers to ensure that he got the best deal. The amount of premium would depend on the make & value of the car, state from where it is registered and the manufacturing year.
2. Two Wheeler Insurance : Two Wheeler Insurance or bike insurance provides protection to bikes and scooters. It covers two wheeler vehicles against any own damages as well as any accidental loss caused to third party property or person. Similar to car insurance, the premium of a two-wheeler policy depends on the age of the bike, its make & model, registration year, etc..
3. Commercial Vehicle Insurance :
Commercial vehicle insurance helps all commercial vehicle drivers to reduce losses they might incur due to damage to their vehicle. Here commercial vehicles include those that are not used for personal purposes, like goods carrying vehicles, trucks, etc.
Third-Party Insurance Cover : It covers a third person who has been injured in an accident involving you and your vehicle, including car, scooters, bikes, trucks, etc. The policy doesn’t provide any direct benefit to the insured. As per the Insurance Regulatory and Development of India (IRDA), no insurer can
decline to underwrite third party insurance.
Comprehensive Insurance Cover : This cover is an add on to the third party insurance plan and protects the owner of cars, bikes, scooters and trucks from financial losses caused by damage or theft of the insured vehicle. Besides insuring vehicles, it also provides third-party coverage.
Pay as You Drive Insurance : Pay As You Drive policy is a newly introduced car insurance product as per the recent guidelines of IRDA under the Sandbox project. This car insurance policy allows the policyholder to pay the insurance premiums as per the kilometres driven. The policy premiums are to be decided at the time of buying the policy depending on the declared distance by the insurance seeker that he/she expects to drive in a policy tenure. Pay As You Drive policy offers both comprehensive and third party liability coverage on a pilot basis for a year. Currently, insurers like Bharti AXA, Acko General, ICICI Lombard are providing this policy through their online portals, agents, aggregator websites or other distribution channels.
The damages to the vehicle due to below perils are covered in motor insurance :
• Riot & strike
• Fire & burglary
• Terrorism act
• Flood, storm, cyclone
Always remember your vehicle insurance will not provide coverage in below situations :
• If the driver is under the influence of drugs or abuse
• The car/ two wheeler/ commercial vehicle is used for illegal activities or a purpose otherwise stated in the policy
• Not having a valid driving license
• Any loss or damage to the insured vehicle if it happens outside India
Do you know, around 4 lakh people meet with road accidents every month? A survey was conducted by the World Health Organization Report, which stated that in 2012, India had recorded the highest number of road deaths in the world. Considering the high number and poor conditions of the road, motor insurance has become a necessity to drive on the Indian roads. Motor insurance gives financial protection not only to you but it also covers third party damages. A few private insurers offer a large number of other utilities to the policyholders, like:
• Direct settlement or cashless claims at network garages
• Depreciation Cover
• Engine Protection Cover
• 24X7 Road Side assistance
• Towing Facility
It is mandatory to get insured with a third-party insurance plan in India. As the name suggests, a thirdparty plan provides cover for the third-party liability and comes with a specified set of coverage. But when you decide to purchase a comprehensive insurance plan then it is suggested to consider several things to make the most out of that insurance plan. So here are the things that you need to consider while purchasing a motor insurance plan.
Coverage: While purchasing motor insurance, check if that particular insurance plan is providing you with the coverage you require.
Add-on: If you are not satisfied with the kind of coverage your desired comprehensive insurance plan is providing then you can always consider purchasing an add-on as provided by your insurer.
Personal Accident Cover: Make sure that the motor insurance you are planning to purchase comes with the personal accident cover or not.
Claim Settlement Ratio: Before purchasing a motor insurance plan, check the claim settlement ratio of your desired insurance provider.
Network Garages: Check if your desired insurance provider has a good network when it comes to garages.
No Claim Bonus: Check if the insurance company provides a good no claim bonus or not.
Read Terms & Conditions Properly: Make sure that you read the terms and conditions properly before signing any documents.
Zero Depreciation: As soon as the car comes out of the showroom, its price drops down to almost half the amount you have bought it for. In order to maintain the monetary value of your vehicle, you are suggested to opt for the zero depreciation add-on to get the best coverage amount after the depreciation.
Here are the parameters that can affect the vehicle insurance premium.
Make & Model: The premium amount of your insurance plan depends upon your car’s make and model, meaning its cubic capacity, model as well as its variant.
Age: The depreciation value, as well as the insured declared value, depends upon the age of your car.
Engine: Th engine type whether it is a petrol engine or a diesel engine will affect the IDV that might increase the premium amount.
Location: The premium amount of your vehicle depends upon the location of the car. For instance, if you live in a metro city then the premium amount of the motor insurance would be higher due to the high risk of an accident.
Add-on: the insurance plan comes with a particular set of coverage but the insurance companies also provide add-ons so that you can enhance the coverage in case you are not satisfied with the existing coverage.
No Claim Bonus: The insurance companies provide a discount on the successive year for not raising a claim during the previous policy tenure.
Online Purchase: For a hassle-free experience and lower premium rates, it is suggested to purchase the policy online as you can compare different plans and purchase the one that suits your requirement as well as your budget.
The document and formalities involved in a vehicle insurance claim settlement will depend upon the type of vehicle and nature of the loss.
Filing for a Claim in Case of Damage to Owned Car/ Two Wheeler/ Commercial Vehicle : To initiate the process, the insured is required to submit a detailed estimate of the loss to the insurance company. Independent automobile surveyors with engineering background are given the task of assessing the reason and extent of the loss. They carefully inspect the damaged vehicle and submit their survey report with the insurance company who will review and examine it in accordance with the recommendations mentioned therein. The usual practice is to authorize repairs with the repairer to whom the letter is issued in this regard.
Apart from Claim Form, Other Documents Required for Processing Claims are : 1.Fitness Certificate (Commercial Vehicles)
2. Driving License
3. Registration Certificate Book
4. Final Bill from repairers
5. Police Report
Third Party Claims : On receipt of the notice from the insured or third party, the matter is transferred to the advocate. Complete information about the accident is obtained from the insured along with the following documents : 1. Police Report
2. Driving License
3. Medical Certificate
4. Death certificate in case of a fatal claim
Parameters that Decide Motor Insurance Premium :
1. Age of the person
2. Driving history
3. Make of the commercial vehicle/ car/ two wheeler
4. The profession of the person
5. Geographic location