All cars operating on Indian highways must be insured. The need for insurance has increased significantly in recent years as a result of the enormous number of vehicles that have entered Indian streets. It's crucial to think about potential collisions that can happen and harm your car. A car insurance coverage can be helpful in these circumstances as it will greatly reduce the costs associated with repairing the automobile or replacing its parts.
|Claim Settlement Ratio
|Number of Cashless Garages
|Royal Sundaram General Insurance
|HDFC ERGO General Insurance
|IFFCO Tokio General Insurance
|The Oriental Insurance Company
|Tata AIG General Insurance
Benefits of Purchasing
Third-party Car Insurance
Comprehensive Car Insurance
|Offers financial assistance and legal cover
|Highest level of protection
|Provides peace of mind
|Easier to replace your vehicle if it gets stolen
|Simple and quick procurement process
|Cover for damages caused by natural disasters
|Cover for damages caused by man-made disasters
|Lower legal liability
The cover offered by car insurance policies varies from insurer to insurer, but the most common inclusions and exclusions in car insurance are as follows:
|What is Covered (Inclusions)
|What is Not Covered (Exclusions)
|Cover for damages to your vehicle
|Damages to vehicle when it was being used for illegal purposes.
|Cover for damages caused by natural calamities
|Accidents that are deemed fraudulent by the insurer.
|Personal accident cover
|Damages incurred by the vehicle when it was being driven by someone who was under the influence of alcohol or drugs.
|Cover for damages incurred due to man-made disasters
|Damages incurred by the vehicle when it was being driven by someone who does not have a valid driving license and who has not attained the legal driving age.
|Damages incurred by the vehicle when the driver was breaking traffic rules.
|Damages to property
|Damages incurred by the vehicle when the car insurance policy had expired.
Note: Each policy has its own list of exclusions that you are expected to read carefully at the time of purchasing one.
The following are a few add-on covers that you can purchase with your car insurance policy to make it more comprehensive and effective:
Purchasing this cover will ensure that you receive a full claim on the cost of the car parts replaced following an accident. This cover is usually provided only for the initial 3 years from the date on which the car was purchased. As the vehicle ages, the premium for this cover gets steeper.
In case you are faced with an emergency when driving in a remote area, the roadside assistance cover will provide you with access to services that can fix your problems as soon as possible.
A personal accident cover provides coverage to the owner of a car in case of accidents. If the owner of the car is driving it and meets with an accident, 100% of the claim amount will be provided to him/her in case of irreparable damage to limbs or death.
A no-claim bonus is a reward for policyholders who do not make any insurance claims over the course of a policy year. In such cases, this cover rewards them by providing discounts of up to 50% on the premium payment for the following year.
This add-on cover provides protection to the electronic circuit and the engine of the vehicle. In case of flooding, the engine can fail if you keep trying to run it, and this damage is not covered by regular car insurance policies.
This add-on cover allows you to report claims because of loss or theft of your personal belongings. In case you leave your laptop or some other expensive equipment in your locked car and it gets stolen, this cover will reimburse you for the loss at least partly if not fully.
In case your vehicle remains in a garage for about three to four days, the daily cash allowance cover will pay for your transportation costs. However, this cover is not too popular among Indian car owners due to the fact that repairs usually take just a day or two.
In case you misplace or lose your car keys, having a key replacement cover will ensure that you are reimbursed for the cost of replacing the key. However, insurance companies do not reimburse the whole amount needed to replace the key.
It is essential to consider the aforementioned covers as they will not only come to your rescue when needed, but will also lower the costs you would otherwise incur if you did not have them. However, not all add-on covers may be beneficial for you, so it is advised that you go through them carefully and pick the ones that could come in handy.
The following are the details/documents you will be required to send to your insurer when making a claim:
In case of accident damages, the following documents will be required to make a claim:
In case of theft of your car, the following documents will be required to make a claim:
Given below are the steps to renew your car insurance online:
Step 1: Visit the car insurance renewal section of your insurer.
Step 2: Enter the details like your name, date of birth, policy number, etc., and submit.
Step 3: Select the car insurance plan you wish to buy.
Step 4: Choose the add-on covers or riders that you wish to purchase (if required).
Step 5: The premium amount payable will be displayed on the screen.
Step 5: Make the premium payment via net banking, debit card, or credit card.
Step 6: Your car insurance will be renewed after you complete the payment.
Insurance agents are employed by insurance firms and receive compensation from them for promoting their services to customers. Agents are knowledgeable about the available insurance packages. They are qualified and experienced to advise you and assist you in selecting the insurance plan that best meets your needs.
Customers purchase vehicles from auto dealers, and these purchases include third-party liability insurance. Dealers frequently have relationships with insurance providers but may not have a thorough understanding of the plans. They handle the administrative tasks necessary to obtain a third-party liability insurance policy offered by the dealership.
Brokers can be either individuals or businesses that are authorised to offer insurance products by the Insurance Regulatory and Development Authority of India. Brokers can sell products from a variety of insurance providers because they have the knowledge necessary to support your decision-making. They also assist with post-purchase support. Brokers can assist you in your search for the best policy for you by comparing a variety of options. Brokers can help you with the claim-settlement process as well.
For damage occurred to your car, the car insurance claim process is as follows:
Step 1: You must notify the insurance provider as soon as you are involved in an accident or observe damage to your car by calling them. Along with the essential paperwork requested by the insurance, you must also provide a properly completed claim form. You can get the forms from your insurance company's website.
Step 2: The insurance provider will send a surveyor to evaluate the harm done to your car. The surveyor will write a report and provide it to the insurance provider. You will receive a copy as well.
Step 3: Following the completion of repairs to your vehicle, the duly signed forms and documents must be taken from the garage and given to the surveyor who will send them to the insurer.
Step 4: If the documents and the claim are approved, a delivery order (DO) will be provided by the insurer in case of cashless claims. Once you pay your car repair bills, you can take your car.
Step 5: You can bring your car to the shop and get reimbursed by paying the fee. Depending on your auto insurance policy's terms and conditions, you may later receive a refund for this sum.
The car insurance claim process for a third-party claim is as follows:
Step 1: You must let your insurer know if you receive a legal notification from a third party demanding compensation for damages you are responsible for. Before speaking with the third party or agreeing to any out-of-court settlements or financial obligations with them, it is crucial to contact your insurance.
Step 2: A copy of the legal notice must be sent to your insurance company.
Step 3: Copies of the FIR, your driving license, and the RC book of your vehicle must be submitted to the insurance company.
Step 4: The insurance company will review the records and the accident's specifics after that, and if they are satisfactory, they will assign a lawyer to represent you.
Step 5: In case the court says that you will have to cover the damages caused to the third party, the insurer will make the payment to the third party.
The car insurance claim process for stolen car is as follows:
Step 1: If your car is stolen you will have to lodge an FIR by filing your complaint at the nearest police station.
Step 2: A copy of the FIR must be submitted to the insurance company.
Step 3: After the final police report is sent to you, a copy must be taken and sent to your insurance company. An investigator will be assigned by the insurance company.
Step 4: After your claim is approved, you should submit your stolen car’s RC book to your insurer.
Step 5: The owner’s name will be changed to the name of the insurance company.
Step 6: The replica car keys and a letter of subrogation must then be delivered to the insurance provider. The insurance firm must also receive a notarized indemnification on stamp paper.
Step 7: Following the completion of the formalities, the claim amount will be disbursed by the insurance company.
You will have to compare a number of plans to find the one that best suits your four wheeler insurance needs. You will have to consider various parameters such as the cost of premium, the claim settlement ratio of the company, the coverage provided, additional benefits, etc.
The Claim Settlement Ratio of an insurance company must be checked to ensure that you have a hassle-free claims process.
If you are purchasing a car for the very first time, the auto-dealer will offer you third-party insurance. If not, you will have to purchase it from a broker or insurance company.
You must go through the policy document to understand who is covered, how much coverage is provided, What are the exclusions, inclusions and etc.
Not only will it protect you and your vehicle, but will also take care of the claims made by third parties for damages caused to their body or vehicle.
Purchasing add-on covers for your car insurance policy will provide you with sufficient cover against various situations in case of accidents.
Experts say that you must evaluate your insurance plan on an annual basis to know if you have adequate coverage or you need more.
The credit-based insurance score of an individual can determine the premium rate applicable to him/her.
The benefits of purchasing this cover is that it provides global coverage and covers all legal expenses. It is also customisable based on the needs of the individual.
By going for this option, the cost of repairs during accidents will be shared between you and the insurer, thus meaning that you will have to pay a lower premium amount.
The package may not be the best suited to your insurance needs and neither would it be the least expensive option.
The Insured Declared Value of your vehicle is the maximum amount that can be claimed under your car insurance plan.
In case you do not make any claims over the course of a year, the No-Claim Bonus will offer benefits such as reduction in your premium amount.
Look for four wheeler insurance companies and plans that offer the cashless claims facility as it comes in handy during times of emergencies.
It is important to note that coverage is not offered for some vehicle parts under a regular car insurance policy. Engine parts or other mechanical parts may not be covered after they are modified.
When you purchase a car insurance policy, the customer support offered by the company is crucial to ensure that you don’t have any hassles in the future.