Car Insurance

There are a number of benefits of owning four wheeler insurance. Firstly, it helps you meet the legal requirement of owning at least a third party car insurance cover. Moreover, a car insurance policy helps you meet financial liabilities that may arise towards a third party or own-damages to your car due to a road accident or any other unfortunate event.

It is mandatory to own at least a third party car insurance policy while driving a car. If you get caught driving without it for the first time, you may be charged with a fine of Rs. 2,000 with or without imprisonment of a maximum of 3 months that can increase to a fine of Rs. 4,000 and/or jail of up to 3 months, when caught for the second time.

The premium rates for third-party car insurance price depend on the engine capacity of the car and is fixed by the IRDAI. However, the premium for standalone own-damage and comprehensive car insurance policies varies from car to car depending on a number of factors such as car's MMV (Make, Model and Variant), RTO location, engine capacity, registration city, fuel type,

Every car insurance comes with a validity period, post which you need to renew it to continue to enjoy its benefits. However, even if you miss to get your car insurance plan renewed by the expiry date, you can still get it renewed till the next 90 days from the date of expiry. After the expiry of this 90-day period, car insurance cannot be renewed. In such a case, you need to purchase a new car insurance policy.

Car insurance policy number is a unique 8 to 10 digit number, given by your car insurance company for the identification of your insurance account. It is generally written on your insurance card or statements issued by the insurance company. The number remains the same as long as your policy is active with the respective insurance provider.

There are a number of factors which make a car insurance company better than its peers. One such important factor is Claim Settlement Ratio (CSR). It is the percentage of claims settled by a car insurance company out of the total number of claims received by it during a financial year. In the financial year 2018-19 the insurance companies which registered the highest claim settlement ratio are IFFCO Tokio General Insurance (96.44%), Royal Sundaram General Insurance (94.07%), and Oriental Insurance Company (93.16%)..

As per the Indian Motor Tariff, every car owner in the country is compulsorily required to own at least a third party car insurance cover. Absence of a valid third party car insurance plan is a punishable offence which attracts a fine of Rs. 2,000 and/or imprisonment of up to 3 months for the first offence.

• Insured Declared Value – The Insured Declared Value (IDV) is the current market value of the four wheeler. It is one of the important factors which affect the calculation of the premium as IDV is the amount which insurance companies pay the policyholder in the event of total loss of car. Higher IDV attracts a higher premium.
• Engine Cubic Capacity – The premium of a car insurance plan is also a function of the car’s engine cubic capacity. Greater the car’s cubic capacity, higher is the premium.
• Age of the Car – With time the value of the four wheeler reduces due to depreciation. The normal wear and tear reduce the value of the car in the market due to which its insurance premium also reduces. Thus, greater the age, lower the premium.
• Make, Model and Variant – The make, model and variant of the car affects the IDV of the car which eventually affects the car insurance premium. For different make, model and variants of the car, the different premium is applicable.
• RTO Location – Another important factor is the RTO location of the car. It gives the insurance company an idea about the density of traffic in the area/city where the car will be driven and thus the probability of road accidents and other mishaps.

Yes, the four wheeler insurance can be transferred from the old owner to the new owner in case the sale of a second-hand car. As per the Indian Motor Tariff, the policy transfer should be completed within 14 days from the car’s purchase date.

No, one car owner can not have two insurance policies for the same four-wheeler. However, a third-party insurance plan and own damage cover can be purchased separately for a four-wheeler, in place of a comprehensive four wheeler insurance.

Depreciation in car insurance refers to the loss of the insured car’s value with time due to wear and tear. The depreciation rate plays a vital part in a car insurance policy as insurance companies consider, based on the car’s age, to determine the value they agree to provide for your car.

The Indian Motor Tariff gives a period of 14 days from the date of the car’s sale to get the car insurance plan transferred from the previous car owner’s name to your name. If you fail to get your car insurance plan transferred within 14 days, your car will have no valid insurance protection.

While applying for a car insurance policy, the insurance company can ask you to disclose various relevant information requested on the car insurance application. Many insurers consider your credit history, age, criminal record, and other aspects for accepting or rejecting your application.

After making the payment of a transfer fee of Rs. 50, the buyer should own the below-given documents for the car insurance policy transfer process:

• 1. New copy of the registration certificate/form 29
• 2. Old policy document
• 3. No Objection Clause (NOC) from the last policyholder
• 4. New application form
• 5. Inspection Report from the insurer
• 6. Difference amount of No Claims Bonus

Once all these documents are submitted, the insurer validates the policy transfer. You should initiate this transfer process within 14 days of car purchase.

Once the request is made, the car inspection process is conducted within 24 hours. After the successful inspection, the surveyor makes an online recommendation to you within 48 hours of which, you will have to log in to the insurance website and convert your plan. Failing to do so within the stipulated time will make you go through the entire process again.

An insurance company declares the insured car to be a constructive total loss when it gets damaged to an extent where repair cost would equal or exceed its cost or its insurance coverage limit. It states that the insurance company will have to pay out the insured value of the car rather than pay for it to be restored to its previous condition.

You can insure the accessories that you purchased for your car at the time of car insurance policy renewal time and not in the middle of the insurance policy term.

When your car meets with an accident or gets stolen, you should report it to the police as soon as possible and file an FIR (First Information Report). All insurers ask for an FIR copy for initiating the settlement process.

A voluntary deductible is the share of the insurance claim that the policyholders agree to pay from their own pocket. If you choose this deductible, the premium of your policy will decrease.

If there is any wrong or incorrect detail entered in the car insurance policy document, you can edit it online or offline as per the provisions offered by your insurance company. You can either make changes in the policy online or through call or email or by making a visit to the nearest branch of your insurer.

According to the Motor Vehicle Act, 1988, when you sell your car, you become responsible to transfer your existing car insurance policy in the name of the new owner of the car within 14 days of the sale of the car. Also, you can cancel your policy by getting in touch with your insurer. Your insurance company will prorate your payment and give back the remaining amount for the month or overall policy term.

You can purchase a personal accident cover for passengers commuting in your car as an add-on cover. This plan will cover the cost of treatment for accidental injuries sustained by the passengers.

When it comes to car insurance, a cover note is a temporary certificate of insurance issued by the insurance company before the issuance of a policy after the insured person has submitted a duly filled in proposal form and has made the complete payment of premium.

Yes, your car insurance will cover the cost to repair for dents, scratches and cosmetic damage, if the insured individual holds a comprehensive or standalone own-damage car insurance policy.

Comprehensive car insurance gives coverage to your third-party liabilities in addition to the damage sustained by your car due to an accident, theft, fire, natural calamities like earthquake, flood, etc, and man-made disasters such as riots, strikes, and so on.

The passengers of your car can be covered under car insurance if you purchase a passenger cover.

Car insurance gives coverage to tyre and tube repair and replacement only in case the insured car has met with an accident. In simple terms, the tyre damages are covered only if the insured car is also damaged in the same accident or at the same time. This excludes tyre burst, normal wear and tear, and so on. However, the policy limits the coverage to 50% of the cost of replacement of tyres.

The damage incurred due to an electrical fire can be covered by your car insurance if there is a provision in your policy.

The car insurance will cover you, your car, and anyone else driving your car with your consent. So, if you lend your car to your friend, sister, cousin, etc, then the insurance company will pay in the event of an accident.

It is an additional benefit that provides the car owner with a daily allowance to cover the daily cost of transportation if your car has to stay at the garage for long for repair.

Since, car insurance coverage gives coverage for manmade disasters where people might damage a car purposely in riots, strikes, etc, therefore, damages caused due to coconut and a cricket bat can be covered.

Car damages due to rat-bite are covered under the own damage or comprehensive car insurance. Rat damage claim is admissible as it is caused by accidental and visible external means.

Car insurance is designed to give coverage for any damage incurred by the engine of the insured car if it meets with an accident. However, no coverage is provided for engine damage due to wear and tear or mechanical failure. To get such coverage, you can add an engine protection add-on cover to your policy.

The rates of car insurance vary from one insurer to another as every company uses a unique formula to estimate risk and determine the amount of premium and claim that it will pay during the policy year.

The car insurance premium increases every year as third party insurance premium rates are increased by IRDAI. Since, third party cover is compulsory for all car owners, hence, it impacts the premium amount of the car insurance. After reviewing the loss ratios of car insurance companies and the total number of claims raised by policyholders, the IRDAI declares the third party premium rates for the next financial year.

Yes, the city or town of car registration impacts the premium cost of car insurance. Insurance companies classify locations in the country in different zones based on the risk associated with them. Generally, zones are termed as metro cities and the rest of India. The former has a high rate of accidents and vandalism that attracts a higher premium in comparison with an insured person living in a less developed and populated city.

No, as of now there is no provision to make payment of car insurance premium in instalments.

You can claim for the dent at the backside of your car but it can terminate any accrued No Claim Bonus (NCB) benefit, which can enhance the premium of your next policy year. Hence, it is suggested to bear small damages on your own to save NCB and avoid the increase of premium.

The renewal of the car insurance policy ensures the continuation of policy coverage for the next policy year. Apart from fulfilling legal requirements and policy cover, the on-time policy renewal brings several other benefits such as save your NCB, allow self-inspection and help in hassle-free renewal.

Most car insurance plans come with a validity of one year while some long term plans come with a 3-year policy term. All the policies are required to be renewed within the due date of their expiry. If the expiry date passes, you should renew it within 30 to 90 days of the grace period that varies from insurer to insurer.

Many people stick to one insurance company only and keep renewing their plans every year with them. Renewing the policy with the same insurance company can provide a wide variety of benefits that includes trusted relationship gets to build, no hidden cost or fee is charged, and policy renewal becomes easier for you.

If you have data and details handy, it will take just a few minutes to purchase or renew a car insurance policy online especially at popular insurance portals like InsuranceDekho.

Yes, your NCB can be migrated and you can avail of it even if you change your insurance company during the policy renewal. However, you will have to submit evidence of the earned NCB through a renewal notice from your current insurance company.

To renew your car insurance policy online, visit the insurance company website you wish to renew your policy with. Click to the renewal section and enter your previous car insurance policy number and its expiry date. Confirm the details of the plan and pay the premium.

Yes, it is absolutely safe to renew a car insurance policy, if you renew it from an authentic insurance company or an insurance broker.

There is no fixed cost of renewing a car insurance plan as it depends on several factors such as type of policy, add-ons in policy, modifications in the car, and so on.

Your No Claim Bonus (NCB) will stay intact if you are able to renew your expired car insurance policy within 90 days of expiration, otherwise, the NCB discount will become invalid.

The No Claim Bonus (NCB) is a reward given by insurance companies in terms of discounts to their policyholders for making no claim requests in a policy year. The NCB discount ranges between 20% and 50% which is applicable on the premium of the next policy year.

If you are renewing the car insurance policy with your own insurance company then only your policy document will be required to avail No Claim Bonus. But, if you are renewing your plan with a new insurance company for your current car, you will be required your previous year’s car insurance policy document or renewal notice which states the NCB you are eligible for.

No, if your car insurance policy gets expired, then your No Claim Bonus (NCB) will be cancelled and you will have to renew your plan on the standard policy premium.

You can simply transfer your No Claim Bonus (NCB) to your new car by cancelling your old car insurance policy. After the cancellation, your insurance company will issue you an NCB retention letter that you will have to submit to your new car insurance company to avail of the bonus.

The No Claim Bonus (NCB) is offered in the name of the policyholder and not to the insured car. Hence, it can be transferred to another insurance company or car owned by you.

Zero Depreciation is an add-on cover in car insurance that make the insurance company pay the complete amount of claim to the policyholder without taking the depreciation cost on the parts of the car into consideration. Since it is an add-on, you will have to pay a little extra premium to avail of it.

Insured Declared Value (IDV) in car insurance is the maximum sum insured set by the insurance company to offer to policyholders in case of theft or total loss of the insured car. IDV is the present market value of the car and if your car suffers total loss, the IDV will be provided as compensation.

To add hypothecation in your car insurance, you will have to submit a letter from your bank or an endorsed copy of RC, form 34, PUC certificate, address proof and PAN card of the car owner, valid car insurance policy and receipt of the fee paid for the hypothecation by the RTO. On the other hand, to remove the hypothecation from your car insurance, you will have to submit NOC from the lender to the insurance company in addition to form 35, a valid car insurance plan, and PUCC.

You can get a duplicate copy of your car insurance in 3 simple steps:

• Step 1: Visit your insurer’s website and choose the car insurance tab.
• Step 2: Log in to the account by entering the required details like policy number, mobile number, etc.
• Step 3: You can download the policy copy easily from the available link.

Also, in case of any trouble, you can contact the customer care team of your insurance company and request for duplicate car insurance policy copy and they will send it to you.

Yes, the online car insurance policy is a valid document.

Inform your insurance company at the earliest about losing your policy so they can begin the process of issuing a duplicate policy document. Some insurers require a police complaint to issue a duplicate policy copy, in such a case, you should register a FIR.

You can know the status of your car insurance policy online check through the website of the Insurance Information Bureau (IIB) or VAHAN E-services and follow simple steps. You can also check your car insurance status via the QR code that IRDAI has made mandatory for every car insurance policy to hold the necessary details that you can scan with your smartphone to fetch status. In case an online facility is not available, you can check the status of your car insurance policy by visiting or getting in touch with the RTO office, where you will have to provide your car registration number.

Even the smallest dent is allowed to be covered under a car insurance policy, but it is always recommended to avoid raising any claim for it and cover its cost out of pocket as fixing a dent may cost you lesser than your car insurance deductible. Also, you may lose the No Claim Bonus accrued over the years due to a small claim.

Generally, there are no such restrictions applicable on the number of claims that you can make in a policy year under your car insurance policy. However, one should keep in mind that the car insurance claim impacts your No Claim Bonus (NCB) as well. Also, repeated claims in a policy year and termination of NCB can enhance the amount of premium during the renewal of the policy.

A cashless car insurance claim is designed to provide you with instant aid after an accident or any unfortunate event and helps you avoid paying any repair costs. However, the cashless car insurance claim can be availed only when your car is sent for repair to a network garage of your insurance provider.

You should register an FIR in case of a road accident if it leads to bodily injury, disability, or death of a third party. In addition to this, an FIR also becomes a compulsory requirement if your car gets stolen. In such cases, you will have to submit one copy of the FIR to your insurance company and you will have to keep one copy for yourself while making a claim.

The time to settle a car insurance claim varies from insurance company to insurance company. It generally ranges from 7 days to 45 days. Once you have submitted all the required documents to process the car insurance claim, it should not take more than 30 days for an insurer to get the claim settled. However, in some cases, where there are a few complications that require further investigation, the claim settlement is to be completed within six months.

When you find out that your car has been stolen, the first thing you should do is to register a First Information Report (FIR) at a local police station. You will get a copy of your FIR that you will require for filing the claim. After registering an FIR, you should raise an insurance claim and can notify the company of the theft. After this, you will have to inform your RTO about car theft. You will be required to fill a few official forms, which will then be signed by the RTO officer. With the duly signed forms, the RTO will give you the transfer papers to be submitted to the insurer. You should submit the required documents to your insurance company including the No Trace Report, which is given by the police if they can not find your car for a particular duration. This document is mandatory to get the claim sanctioned by your insurer.

Yes, insurance companies allow you to cancel a car insurance claim after filing it. There are various reasons as to why drivers should cancel a claim among which the most common reason is to avoid paying the deductible. To cancel your insurance claim, you should get in touch with a representative of your insurance company.

You can raise a car insurance claim every time your car is damaged, but it is recommended to register a claim for major damages. Since you can lose your NCB and may have to pay the deductible amount, hence, it is suggested to not raise a claim every time your car get damaged instead raise it based on the level of damage.

Most claim insurance plans for an accident are required to be reported directly to an insurance company irrespective of whether there is any claim being made. It is because reporting to the insurer directly initiates the car insurance claim process quickly and make it transparent.

Cashless car insurance is where the insurance company settles the claim directly by making the payment on behalf of the insured person while a reimbursement car insurance requires you to pay for all the expenses yourself at the initial stage and later reimburses the expenses.

Yes, the claim will be considered valid as long as the policyholder reports the incident with seven days of its occurrence, the claim will be valid.

Generally, the car insurance providers provide a deadline within which you have to reach out to insurance companies for a claim. However, deadlines might vary from one vehicle insurance company to another where you need to submit the receipts that serve as evidence for the expenses made. Hence, it is suggested to raise the claim insurance at the earliest. So, if your insurer allows you to raise a claim within 6 months, you can raise it.

If your car insurance claim gets rejected, you can get in touch with the customer support team of your insurance company to know the reason for claim rejection and make the claim again after rectifying the mistake. If it does not help, then you will have to make payment from your pocket for the repair or loss.

Yes, some car insurance companies give discounts up to 50% of the amount of premium for people with physical disabilities if their car or vehicle is specifically designed or modified in a way that it can of use of the physically disabled.

A vehicle insurance company provides covers with the cost of an ambulance if you have got the personal accident cover. They provide this coverage as a part of the medical expenses after a car accident. However, the cover is given if it is medically necessary.

You must inform your vehicle insurance company about the change in your car's fuel type to CNG as soon as you get the kit installed in your car. You should not wait for car insurance policy renewal to inform your car insurance company about the modification so that the kit can be covered under the plan.

The CNG or LPG kit can get the coverage under the own-damage and a comprehensive car insurance plan. You will have to inform your insurer about the CNG kit installation in the car vehicle and submit the modified RC book's copy that has the CNG seal. The insurance company can also inspect the car and then make changes in your existing vehicle insurance policy to provide you with the coverage for the installed CNG kit.

Insured Declared Value (IDV) refers to the car manufacturer's listed selling price minus depreciation. The IDV excludes the registration and insurance cost. The IDV of car accessories that are not factory fitted is computed separately at an additional cost of insurance is required for them.

Driving a car without holding at least a third party car insurance plan is an illegal and punishable offence. According to the Motor Vehicle Act, the punishment of driving a car without holding the basic car insurance policy is Rs. 2,000 and/or imprisonment of up to 3 months.

If you change your city, you should inform your insurance company as it may impact your insurance premium as the traffic density in a metro city is higher than tier 2 city which can cause more accidents to cover which higher premium to be paid.

An endorsement in car insurance is an amendment or an addition made to the existing terms and conditions in the policy. Endorsements can also be referred to as riders which allows you to add, delete, modify any parts or terms under the car insurance policy coverage.

If you wish to purchase a fresh policy for a second-hand car, then you will have to follow the below-given steps:

• Step 1: Enter your car registration number
• Step 2: Provide the required information like make, model, RTO location, fuel type, etc.
• Step 3: Fill in your personal details and contact number
• Step 4:Check the premium amount of different policies from policy quotes
• Step 5: Select a suitable plan as per your budget and requirements
• Step 6: Opt for an add-on cover to enhance your policy coverage
• Step 7: Pay for the final insurance premium amount online and a policy will be issued.

Yes, customers can cancel their car insurance policies at any time. They just have to communicate with their insurance company with a written notice stating the effective date of cancellation.

Yes, you can choose a garage of your choice to get your car repaired. If it falls in the network of the insurance company that you can avail cashless insurance facility otherwise you may have to proceed with a reimbursement claim.

The car insurance premium will vary for different models of a car from the same manufacturer. It is because every model is made unique and will have costly parts than its countermodels.

Loading is an additional premium amount charged by insurance companies in addition to the base premium for a car insurance policy. It is an extra cost built into the insurance policy in order to give coverage for losses that are higher than expected arising from insuring a person who is prone to a type of risk.

Yes, you can insure your car after 15 years with the third-party car insurance plan as everyone has to carry the liability only cover as a compulsion as per the Motor Vehicles Act, 1988. However, insurance with own-damage cover varies from insurance company to insurance company.