What is Motor Insurance?
Motor insurance or auto insurance provides best car insurance in India, best bike insurance, and commercial vehicle insurance. The motor vehicle insurance company compensates the policyholder for any damage or financial losses due to an accident or other damages. A comprehensive motor insurance policy also covers any damage caused to another person, vehicle, or property. The following are the possible reasons for the damages:
- Collisions, accidents
- Theft, fire, robberies, vandalism
- Riots, strikes, terrorist activities
- Floods, landslides, lightning, storms, cyclones, earthquakes
Importance of Motor Vehicle Insurance in India
According to the Motor Vehicle Act, India, vehicle owners must buy valid motor insurance before driving on Indian roads. Motor vehicle insurance fulfils vehicle owner's legal liability that could arise due to bodily injury/ loss/damage caused to third-party/property. Apart from Indian law, the following are the critical reasons to get motor insurance for your vehicle:
- Timesaving & Hassle-free: An accident can be highly time-consuming and full of fatigue. The best motor insurance in India helps you avoid negotiating with other property owners/drivers involved in the accident. It also saves you from the costs of vehicle repairs or replacement.
- Relaxed Mind: Sometimes, another driver's mistake can become a massive problem for you. The best motor insurance makes you feel confident and calm that you're protected in the case where an uninsured/underinsured driver hits your vehicle.
- Protection for both you and others: The best motor insurance policy protects you, your family, co-passengers, and other people. In the case of an accident, you should have the bestmotor insurance to take care of any bodily injury/property costs that may occur.
Types of Motor Insurance in India
Each vehicle type, such as bike, commercial vehicles, car, etc., has its insurance coverage, such as two-wheeler vehicle insurance, motor car insurance, commercial vehicle insurance, etc. However, irrespective of the vehicle, generally, there are two types of motor vehicle insurance
Third-Party Motor Insurance
Inclusions: third party insurance for car or any other vehicle covers damages caused to another person, their vehicle, or property due to collision or accidents
Exclusions: third party car insurance online, commercial auto insurance, or third party bike insurance does not cover damages to your vehicle or bodily injuries that you may suffer
Comprehensive Motor Insurance
Inclusions: covers damages caused to you, your vehicle, or a third party due to collisions, theft, sabotage, natural calamities, human-made calamities, or even fire
Exclusions: covers all damages, except for the loss suffered while drinking under the influence of alcohol/drugs or without policy/license
How much does the Best Motor Insurance Policy cost?
The cost of motor insurance is nothing but the premium amount. It depends on several determinants, such as the vehicle's IDV, vehicle's manufacturing year, the type of insurance policy, etc. The following are the critical factors on which the cost of motor insurance depends:
- Vehicle's Value: The premium of your motor insurance will be based on your vehicle's current market value, i.e., Insured Declared Value (IDV), the maximum amount the insurance company pays at the time of a claim. More IDV means more sum assured.
- Insurance Type: Different motor insurances offer different covers. The more the coverage, the higher is the premium. Third-party motor insurance only covers damages to another vehicle, person, or property. Whereas, a comprehensive motor insurance policy covers third-party damage as well as own damage. Therefore, comprehensive insurance is costlier than third-party insurance.
- Vehicle's Age: An older vehicle will have a lower market value. Age makes your vehicle more receptive to damages, thereby increasing the premium amount. Hence, the insurer examines your vehicle thoroughly before processing your insurance application.
- Claim History: Your premium amount gets affected by the times you make an insurance claim. The more the claims, the higher is the premium amount. A No Claim Bonus (NCB) is given to you if you do not make any claim during an active year of your motor insurance policy.
- Add-ons: The premium of your motor insurance increases as you add extra covers or services.
How can I purchase the Best Motor Insurance in India?
The following is the process for securing you and your vehicle:
- Know your vehicle's needs as well as yours.
- Keep all the needful documents handy.
- Note down critical information, such as chassis number, manufacturing date, and other engine specs.
- The maximum sum insured would be your vehicle's current market value.
- Go through the different plans available.
- Sort down the benefits each plan offers.
- Look for the add-ons that suit your preferences.
- Thoroughly read the things excluded.
- Choose the plan that best matches your preferences.
- Compare best online bike insurance, commercial vehicle insurance, and car insurance plans in India from different insurers.
- Contact the insurer that offers the best motor vehicle insurance online.
- You need to pay the premium amount to make your motor insurance policy active.
- Fill the form and pay the amount.
- The above step can be done on the motor vehicle insurance company's website.
- Or, you may get the same online motor insurance through a broker.
Steps to Buy New Motor Insurance
Online Motor Insurance
The simplistic and the fastest way of getting your car insurance policy, two-wheeler insurance, or commercial insurance policy is buying a new motor insurance online. It allows you to compare various motorvehicle insurance online and choose the one that suits your requirements.
You are required to enter your vehicle's registration number, your details, and other relevant details as on the motor vehicle insurance company's website. You are then required to set your vehicle's Insured Declared Value (IDV), and then you can choose add-ons. Once you make the payment, a new motor insurance policy documents will be sent at your registered email address that you may print and use as required.
Offline Motor Insurance
It is time-consuming to buy a motor insurance policy offline. For knowing the best policies available, you need to contact different motor insurance companies in India or their agents. After selecting aninsurer, you need to fill the form. Only after your form is approved, a new motor insurance policy will be sent to your address via post that takes around 5-7 business days.
Motor Vehicle Insurance: Terms and Conditions to Keep in Mind
- Add-ons: additional covers and services, which increases your premium
- Break-in Insurance: your motor vehicle insurance lapses if you do not renew motor insurance online in time,and causes 'break-in insurance' that requires you to buy a new one
- Cover Note: the motor insurance policy certificate until your insurance company issues your motor insurance policy
- Deductible: a fixed amount of your vehicle's repairs that you must pay, and can be as little as Rs 1,000
- Endorsement: a document along with your motor vehicle insurance that adds to or subtracts from the benefits described in your motor insurance policy
- First-party coverage: This term is used in Comprehensive motor vehicle insurance that means your policy covers you and your vehicle in the case of 'Own damage.'
- Grace Period: the period after your policy's expiration. Paying the premium amount within this period renews your existing policy. Otherwise, you will have to get a fresh one.
- Lapse: motor insurance's termination due to the non-payment of the premium amount
- Independent Agent: insurance agent who is not directly under the payroll of any insurer and can represent more than one insurer
- Misrepresentation: is an incorrect or incomplete statement made while purchasing a motor insurance policy.
- No Claim Refund: the premium amount promised to be refunded to you if not claimed during the entire insurance period
- Policy Period: the time during which the motor insurance is active.
- Rider:An Add-on
- Surcharge: an increase in the premium cost due to accidents that occur due to your fault.
- Third-party: another vehicle/property or any individual except you, involved in an accident, is called the Third-party.
- Vehicle Identification Number (VIN): a unique identification number assigned to your vehicle.
- Zero Depreciation: The value of your vehicle decreases due to aging and wear & tear. The insurance company neglects this with an add-on and provides the entire vehicle value when you make claims.
Motor Insurance Policy: Claim Process
Third-Party Motor Insurance Claim
- Ensure that you immediately inform the police and your insurance company about the accident if your vehicle causes damage to a third-party.
- You must get the third-party motor insurance details and tell their insurer if you are the accident's victim.
- The insurer will assign the matter to a tribunal after getting a notice from the insured or the third-party.
- Once the tribunal decides the penalty amount, the motor insurance company then pays or compensates this amount.
Own Damage Motor Vehicle Insurance Claim
- Inform your insurance company within a week in case of damage to your vehicle.
- The insurance company can reject the claim if there is any delay.
- For assessing the reason and the extent of the damage, an independent surveyor examines the vehicle.
- The insurance company or you will then take the vehicle to the nearest motor garage.
- Your insurer will send an approval after a thorough examination of the incident.
- You are required to pay the bill's minimum amount, and the rest is taken care of by your insurer.
- The insurer will compensate you if you pay the whole bill amount.
- Inform the police and your insurance company.
- You are required to submit documents such as a copy of your driving license, vehicle registration certificate, etc.
- A few insurance companies might ask you to submit your vehicle's keys.
- The police issue a non-traceable certificate if it cannot locate your car after a reasonable amount of time.
- Your insurance company then proceeds towards your claim settlement.
- It will compensate you for an amount equal to your car's value.
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Frequently Asked Questions
You cantransfer your bonus earned during the previous policy duration. For this, proof of the bonus earned is required from your end. A renewal notice from your expiring policy or current insurer can be submitted as proof.
The following are the cases in which your motor vehicle insurance company can reject your claim:
- Not telling your insurer about the incident at the right time.
- Having a second-hand vehicle, and its seller hasn't assigned your name in the insurance.
- Your vehicle is extremely old to be repaired, according to your insurer.
- Proceeding with your vehicle's repair without or before informing your insurance company.
- Driving/Riding under the impact of drugs/alcohol or without a valid driving license.
- If your insurer does not cover the liabilities.
- Vehicle's RC copy
- A claim form (duly signed)
- FIR's copy (in case of vehicle theft/third party liabilities)
- Original payment receipt and repair invoice (in case of claim reimbursement)
- The originalestimate of loss