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Car Insurance FAQs

1. What is car insurance? 

Car insurance is a policy where the insurer provides financial coverage to the insured’s four-wheeler against various unforeseen mishaps. In return, the policyholder must pay the pre-determined premium amount to avail insurance coverage.

2. How do I choose the right car insurance plan?

To choose the right car insurance policy, you must compare plans online, select the coverage type based on your insurance needs, understand the Claim Settlement Ratio (CSR) of various insurers, etc. This will help you pick a suitable four-wheeler insurance plan for your car.

3. Do I have to insure my four-wheeler?

As per the Motor Vehicles Act, 1988, it is mandatory for every vehicle being driven on the road to be insured. Without a valid insurance plan, you would have to pay a hefty penalty.

4. Which type of car insurance is the most affordable?

Third-party liability cover is the most affordable car insurance policy that you can purchase. 

5. What does premium mean in car insurance?

A car insurance premium is a set amount that you must pay to the insurance provider to avail an insurance policy. The premium may vary based on various factors such as your car make and model, city of residence, engine capacity, Insured Declared Value, etc.

6. Do I need to get car insurance for an old vehicle?

All types of vehicles must have insurance to drive legally on Indian roads as per the Motor Vehicles Act, 1988. So, you must insure your vehicle if you still drive it irrespective of how old the car is.

7. What are various types of car insurance policies?

There are broadly two types of car insurance policies namely comprehensive car insurance and third-party insurance. The third-party cover secures you against any loss or damage incurred by the third party. Whereas, comprehensive insurance covers third-party liabilities and own damage.

8. What are the benefits of purchasing car insurance online?

Purchasing car insurance online is simple and convenient as you can buy the policy from the comforts of your home or on the go. Furthermore, the online car insurance premiums are much more affordable as there is no third person involved in the process.

9. How do I purchase car insurance online?

You can head over to Bajaj MARKETS to buy car insurance online or use our insurance app to secure your vehicle right from your smartphone!

Comprehensive Car Insurance FAQs

1. What is comprehensive car insurance?

Comprehensive car insurance is a policy that provides extensive coverage to your four-wheeler. It covers third-party liabilities, accidental damage, natural calamities, man-made disasters, theft, etc. 

2. What is IDV in car insurance?

IDV (Insured Declared Value) is the current market rate of your car after accounting for the depreciation rate of the vehicle. In case of total loss or theft, the insurer shall offer the IDV of your car as compensation.

3. What is a No Claim Bonus in car insurance?

A No Claim Bonus, commonly known as NCB, is a reward that you can avail on the renewal premium by maintaining a claim-free policy year. The bonus keeps increasing for consecutive claim-free years and goes as high as 50%.

4. Is comprehensive car insurance compulsory?

Comprehensive car insurance is an optional cover and isn’t compulsory. However, it is crucial to opt for such an insurance plan to enjoy enhanced protection against unforeseen mishaps on the road. 

5. What are the factors that affect car insurance premiums?

The factors that affect car insurance premiums are the coverage type, the IDV of the car, add-on covers, make and model of vehicle, fuel type, car’s manufacturing year, etc. 

6. Can I switch to comprehensive insurance from third-party car insurance?

Yes. You can easily switch to comprehensive car insurance during renewal. In case you already have the third-party insurance plan, you can opt for an own damage cover to get additional coverage.

Third-Party Car Insurance FAQs

1. What is third-party car insurance?

Third party car insurance is a basic plan that offers coverage against loss and damage caused to third-party property, bodily injuries or even the death of the victim. 

2. How are the third-party car insurance premiums decided?

The third-party car insurance premiums are decided by IRDAI, the insurance regulatory body, based on the engine capacity of the four-wheeler.

3. What is the highest compensation provided under third-party car insurance?

In case of damage to third-party property, the maximum compensation offered is ₹7.5 Lakh. However, in the case of bodily injuries or the death of the victim, there is no limit to the compensation amount. The sum might be decided by the Motor Accident Claims Tribunal or the court of law.

4. Can I transfer my third-party insurance plan if I sell my vehicle?

Yes. You can transfer the third-party car insurance policy to the new owner-driver’s name. This process must be completed within two weeks or 14 days.

5. What is the tenor of the third-party liability cover?

The tenor of the third-party liability cover consists of one year where you need to renew it annually. But you can now purchase a third-party cover with a tenor of three and five years.

6. Is a third-party cover mandatory by law?

Yes, third-party insurance is mandated by law under the Motor Vehicles Act, 1988.

Car Insurance Renewal FAQs

1. How can I renew car insurance online?

You can complete the car insurance renewal process in the following way:

 

Step 1: Go to the ‘Car Insurance Renewal’ section on your insurance provider’s website

 

Step 2: Enter the necessary details about your vehicle.

 

Step 3: Provide the information related to your old car insurance plan.

 

Step 4: Add or remove any add-on covers and check the final renewal premium amount.

 

Step 5: Pay the insurance premium online.

 

Step 6: Your renewed car insurance policy will be issued soon!

2. What happens if I forget to renew my car insurance plan?

If you forget to renew your car insurance plan before the due date, you can still opt for insurance renewal during the grace period.

3. Do I have to purchase a new car insurance plan if I miss the grace period?

If you fail to renew car insurance during the grace period, you will have to purchase an insurance plan and complete the car inspection process again.

4. Can an insurance provider refuse to renew my car insurance policy?

Yes. In case of incorrect documents, fraudulent claims, or non-disclosure of certain information, an insurance company can refuse to renew your four-wheeler insurance plan.

5. Do I lose the NCB in car insurance if I don’t renew my insurance policy during the grace period?

By renewing your car insurance policy within 90 days of the policy expiry, you can retain your NCB reward and avoid losing it!

FAQs on Add-On Covers in Car Insurance

1. What are the add-on covers in car insurance?

Add-on covers are extra components that you can purchase separately to enhance your car insurance coverage. These covers offer additional features over and above your existing comprehensive insurance policy. Some popular add-ons are zero depreciation cover, NCB protection cover, return to invoice cover, roadside assistance cover, etc.

2. Do third-party insurance plans offer add-on covers?

No. Add-on covers are only available with a comprehensive car insurance policy.

3. What is a zero depreciation add-on cover?

Zero depreciation cover or nil depreciation cover enables you to get the entire claim amount without any deductions owing to the depreciation rate of your car. Thus, you do not have to cover any additional expenses due to such an add-on cover.

4. What is an NCB protection cover?

An NCB protection cover allows you to make a set number of claims without losing your NCB reward in car insurance. The number of claims permitted under the add-on may vary from one insurer to another.

5. Do I have to pay extra for the add-on covers in car insurance?

Yes. You need to buy the add-on covers separately to enjoy additional features under your car insurance policy. This may lead to an increase in your insurance premium and hence, it is crucial to only opt for covers that you require.

FAQs on Car Insurance Claim Settlement Process

1. What are the types of car insurance claims that I can raise?

You can raise two types of car insurance claims, cashless and reimbursement claims. Under cashless claims, you do not have to cover the repair expenses and the insurer will directly settle it with the network garage. Whereas for reimbursement claims, you must cover the repair expenses first and file for a claim later.

2. Is there a limit to the number of claims I can file every policy term?

Insurance companies do not have a limit on the number of claims that you can file during the policy term. However, a large number of claims can lead to an increase in your renewal insurance premium.

3. What are the documents required for filing an insurance claim?

You can keep the following documents handy while raising a car insurance claim:

  • Car insurance policy document

  • Vehicle details

  • Insurance provider details

  • FIR copy in case of theft

  • Original receipts of the car repair

  • Information regarding the incident

4. How do I file a cashless car insurance claim?

Here’s how you can file a cashless car insurance claim with just a few steps:

 

Step 1: Inform the insurer and register the claim by calling their toll-free number or by visiting their website.

 

Step 2: Get your four-wheeler repaired at the nearest network garage.

 

Step 3: Submit all the necessary documents.

 

Step 4: Once the documents are verified, your insurer will settle the claim directly with the network garage.

5. How do I file a reimbursement car insurance claim?

Follow these steps to raise a reimbursement car insurance claim:

 

Step 1: Inform the insurer about the incident. File an FIR in case of damage due to a third party or theft.

 

Step 2: Get your car repaired at a garage of your choice and make payment.

 

Step 3: Submit the original bills, the FIR and the payment receipt to the insurer.

 

Step 4: Once the documents are verified, your claim amount will be reimbursed.

Check Out Car Insurance Plans Available at Bajaj MARKETS

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