Motor insurance is a coverage which is bought for cars, trucks and other vehicles that ply on roads. Its main objective is to give complete protection against physical damage or loss from natural and man-made calamities. In India, motor insurance is mandatory to ply a vehicle on road. Motor insurance.
Motor Insurance can be broadly classified under below heads-
Car Insurance: Car Insurance gives coverage against accidental loss or damages to own car or to a third party. While choosing a car insurance policy, a person should always compare premium offered by various insurers to ensure that he got the best deal. The amount of premium would depend on the make & value of car, state from where it is registered and manufacturing year.
Two Wheeler Insurance: It provides protection to bikes and scooters. The features of two wheeler policy are similar to car insurance.
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 which are not used for personal purposes, like goods carrying vehicles.
Third Party Insurance Policy: It covers third person who has been injured in an accident involving you and your car. The policy doesn’t provide any direct benefit to the insured. As per 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 from financial losses caused by damage or theft of the insured vehicle. Besides insuring vehicles, it also provides third party coverage.
Liability only Policy: It provides third party liability cover for bodily injuries and property damage. It also includes personal accident cover for driver.
Profession of the person
The damages to the vehicle due to below perils are covered in motor insurance-
Always remember your motor insurance will not provide coverage in below situations-
If driver is under the influence of drugs or abuse
Affordable life insurance policies
Vehicle is used for illegal activities or for purpose otherwise stated in the policy
Not having 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 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 road, motor insurance has become a necessity to drive on the Indian road. 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
Engine Protection Cover
24X7 Road Side assistance
The document and formalities involved in a motor insurance claim settlement will depend upon the type of vehicle and nature of loss.
Filing for a claim in case of damage to owned car
To initiate the process, insured is required to submit a detailed estimate of loss to the insurance company. Independent automobile surveyors with engineering background are given the task of assessing the reason and extent of 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 letter is issued in this regard.
Apart from claim form, other documents required for processing claims are-
Fitness Certificate (Commercial Vehicles)
Registration Certificate Book
Final Bill from repairers
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 following documents-
Death certificate in case of fatal claim
Soon your premium may go up as IRDA floated a draft proposal seeking an increase in third party insurance premium. To save you from shelling out extra money on auto insurance premium, our experts at PolicyBazaar have come up with some tips to ensure that you get better deal on your policy.
While most of us are eager in availing no-claim bonuses (a discount in premium at renewal if no claim is made during the policy term), but we hardly pay attention towards other smaller discounts which can add up to a substantial amount. All comprehensive insurance plans offer reward for good claim history, with a discount which could be 50% of the premium.
Also, concessions are given to customers who have a valid membership of recognized automobile associations, like Western Automobile Association, Automobile Association of Eastern India, Automotive Research Association of India and Automobile Association of Southern India. If you have an excellent claim free driving record, then you should opt for a high ‘voluntary deductible’ amount. It is an amount which you need to pay before the insurer pays claim amount. Also, you should check for loyalty discounts if you are renewing the insurance policy with your present insurance company. Professionals like doctors, chartered accountants and government employees are entitled to avail special discounts. It is noteworthy to state that you will become eligible to get discounts only if your policy is not lapsed.
Installation of anti-theft device is a win-win situation for both insurers and insured. When you install ARAI (Automobile Research Association of India) approved anti-theft device, then it makes you entitled to get discounts on your premium.
It is pivotal to note that adding riders to a motor insurance will add to premium rates. If already you have sufficient coverage, for instance, your driver is having adequate life insurance coverage, there is no point in buying similar riders. However, in the absence of complete protection, it is worthwhile to opt for these riders.
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Finally, at last never forget to compare prices before applying. Every insurance company charges different rates and therefore, a little bit scouting will go in your way.
Sadly, very few motor insurance policyholders know that by doing a simple comparison they can save up to 55% on their insurance premium. So whether you are a newbie who is buying a policy for the first time or an experienced buyer who is interested in renewing a policy, come at PolicyBazaar, where after putting basic details, like make of the car, previous claim reports, your age, profession, etc, you can get a long list of top motor insurance providers of the country. Moreover, you don’t need to run from pillar to post to buy a policy because we give you a safe and easy platform where insurance policies can be bought and renew at mere mouse click. So wake up to the easiest way of buying a motor insurance!
For most of the insurance providers, the documents mentioned below are required. Although, read the fine print of your policy carefully and cross check.
2. Photostat copy of automobile’s Registration Certificate
3. Original estimate of loss
4. Original invoice and payment receipt of the repair. If you have availed the cashless facility, repair invoice is required to be submitted.
5. FIR is required if you file a claim for vehicle loss/theft
6. The keys are required to be submitted along with a non-traceable certificate in case you are filing theft claims.