Buy Car Insurance, the smart way.

To buy the policy individuals would have to submit the RC book of the car, invoice of the new car or existing policy document for an old car, No claim bonus certificate of the existing policy if required.

The IRDAI revises premium every year, considering the ratio of claims made and loss for providers. Because of this, third party insurance rates for cars and bikes have become costly from April 1st, with the insurance rate rising up to 40%.

• Death of any third party due to the car
• Any type of bodily injury suffered by any third party due to the car
• Damage to third party properties
• Damages suffered by the car due to natural calamities like hurricanes, earthquakes, storms, tempest, flood, etc.
• Damages suffered by the car due to man-made disasters like fire, theft, burglary, etc.
• Damages incurred due to ignition or self-explosion
• Damages suffered when the car is being transported via rail, road, water or air
• A personal accident cover for the owner/driver of the car against accidental deaths and accidental permanent disabilities.

Normal wear and tear and general ageing of the insured vehicle

Vehicle used otherwise than limitations as to use

Mechanical or electrical breakdown

Damage to vehicle by war, mutiny or nuclear attacks.

Damage by a person driving the vehicle under the influence of drugs or liquor or with in invalid license.

Loss of the vehicle or damage that can be sufficiently proven to be deliberate or consequential

Damages sustained due to deliberate actions or criminal acts

Claims faced when driving outside the geographical territory of India

Vehicles being used as a commercial one when registered for personal use

A car insurance policy is not only legally mandatory, it is beneficial too. Here’s how –

• The third party coverage protects your finances in the event of a third party claim. If a third party dies, the compensation involved is quite considerable. It might not be possible for every car owner to pay such high compensations from his/her own pockets.
• Even in case of damages to the car, the repair costs involved are quite high. A car insurance policy reduces the financial burden you face when paying for such repairs.
• If your car is stolen or damaged beyond repairs, the car insurance plan would pay a lump sum money (the IDV of the policy) which would help you buy a new car or deal with the financial loss you face.
• As the car insurance policy is mandatory, you are protected from legal hassles which would incur in the absence of one.

Once your claim is accepted, you will be paid the approved claim amount minus certain deductions which you will have to pay out from your pocket:

Standard or Voluntary Deductible: this is a fixed amount that you have to bear before the policy comes into force. For private cars, this amount currently is Rs. 1,000.

Depreciation: Standard insurance pays for the actual cash value of your damaged or destroyed vehicle part. However, since the part was already in use, its value will be less than or depreciated in comparison to a new replacement part. This will be 30% for fibre components and 50% for plastics and rubber. If you do not want to bear the depreciation cost, you can buy zero depreciation add-on which is available typically for cars not older than 3 years.

IDV stands for Insured Declared Value. it represents the actual sum insured of the car insurance policy. IDV is calculated by deducting the age based depreciation from the market value of the car. The market value of the car would exclude registration and insurance costs for IDV calculations. The rate of depreciation would depend on the age of the car and would be as follows -

If the car is more than 5 years old, the IDV is mutually decided between the insurance company and the policyholder.

The IDV is paid as claim if the car is damaged beyond repairs or if the car is stolen.

You can claim the roadside assistance cover for a maximum of four times during the entire policy period.

CTL stands for Constructive Total Loss of the car. A loss if declared to be a CTL if the estimated repair costs exceed the IDV of the policy. In such cases, the IDV is paid as claim.

Yes, if you are selling your car to another individual you can also transfer the insurance policy of the car to the buyer. While the policy ownership would change, the no claim bonus would remain with you and you can use the bonus to claim a premium discount in another car insurance policy which you buy.