Vehicle Insurance

Buy Best Motor Insurance Plan to Make Your Road Journey Safe

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.

Types of 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.
  • Age of the person
  • Driving history
  • Make of the vehicle
  • Profession of the person
  • Geographic location
  • Riot & strike
  • Fire & burglary
  • Terrorism act
  • Earthquake
  • Land slide
  • Flood, storm, cyclone
  • If driver is under the influence of drugs or abuse
  • 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
  • Direct settlement or cashless claims at network garages
  • Depreciation Cover
  • Engine Protection Cover
  • 24X7 Road Side assistance
  • Towing Facility

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)
  • Driving License
  • Registration Certificate Book
  • Final Bill from repairers
  • Police Report

Third Party Claims

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-

  • Police Report
  • Driving License
  • Medical Certificate
  • Death certificate in case of fatal claim

Get More Info on How to Fill Motor Insurance Claim

Tips to Lower Motor Insurance Premium Rates

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 Shakti Square have come up with some tips to ensure that you get better deal on your policy.

1. Know all about exciting discounts

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.

2. Installation of Anti-theft device

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.

3. Riders

 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.

4. Compare, Compare and Compare

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.