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Motor Insurance

Motor insurance or vehicle insurance is not only a legal mandate in India but also a very valuable safeguard that can offer financial protection in case of a mishap. Vehicle insurance allows you to rest easy knowing that your vehicle and finances are safe in case of any contingency. You can now buy motor insurance online and even renew your coverage at the end of your policy term very easily. Read this article to know more about types of motor insurance in India and what you should look for in a vehicle insurance policy.

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Types of Vehicles Covered Under Motor Insurance in India

In India, you will find motor insurance plans for different types of vehicles:

 

  • Car Insurance

This type of motor insurance pertains to private four-wheelers and the regulations associated with them. It offers coverage against damages from accidents, natural disasters, theft, fire etc. Besides, a car insurance also covers any damage or injuries caused to the third party and even the damages or injuries caused to the owner of the four-wheeler.

  • Two-Wheeler Insurance

This type of vehicle insurance protects your bike or scooter and pertains to the regulations associated with them. It offers coverage against damages from accidents, natural disasters, theft, fire etc. Besides, a bike insurance also covers damages or injuries caused to the third party and even the damages or injuries caused to the owner of the two-wheeler along with the pillion riders.  

Benefits of Motor Insurance

  • No Penalty

    By buying motor insurance online, you are avoiding the penalty levied on vehicle owners who have not bought third-party liability insurance, which is compulsory in India.

  • Financial Protection

    Motor insurance provides essential protection to your finances, to cover expenses incurred due to repairs after an accident.

  • Liability Coverage

    This pertains to damages or losses sustained by a third party due to an accident.

  • Personal Accident Cover

    This pertains to damages, injuries or losses sustained by the driver or owner of the insured vehicle.

  • Protection against Calamities

    It also compensates for any costs incurred due to the impact of natural or man-made calamities on the insured vehicle.

Types of Vehicle Insurance Plans

Making the most of your motor insurance policy is contingent on how well your chosen plan suits your needs. Here are the two main types of motor insurance available in the market today:

  • Third-party Motor Insurance

Third-party motor insurance covers damages sustained by a third-party driver or their property in an accident involving the insured vehicle. This is the most basic and mandatory vehicle insurance plan on offer.

  • Comprehensive Motor Insurance

The comprehensive insurance plan is extensive; it covers third-party liability, injuries or damages sustained by you or your vehicle, or damages and losses sustained due to natural calamities, man-made calamities and theft. You can also customise this vehicle insurance with add-ons.

How to Buy Vehicle Insurance?

You can buy motor insurance online on Bajaj Markets in these few easy steps:

  • Select your preferred coverage and vehicle type.

  • Fill out your personal details and vehicle information.

  • Get your documents verified.

  • Pay the premium amount, and you are done!

Inclusions & Exclusions

The things covered under motor insurance, or inclusions, are as follows:

  • Accidental Damage
  • Third-party liability
  • Damage caused due to man-made calamity (riot , fire, strikes)
  • Damage/loss due to theft
  • Damage caused due to natural calamity (earthquake, hurricane, landslides)

Here are the scenarios that are excluded from motor insurance:

  • Driving with an invalid driver’s licence
  • Driving under the influence
  • Involvement of vehicle in criminal activity
  • Damage sustained outside the geographical region
  • Normal wear and tear of parts

Factors affecting Vehicle Insurance Premium

Here are the factors that together determine the vehicle insurance premium:

  • Vehicle Age

  • Geographic Location

  • Type of Coverage

  • Engine Capacity

  • Add-on Covers

You can easily calculate your motor insurance premium with the help of the Bajaj Markets insurance premium calculator.

Motor Insurance Renewal

Here is what you need to do to renew your motor insurance policy:

  1. Go to the renewal section on the insurer’s website.

  2. Enter your vehicle insurance details.

  3. Enter your personal information and vehicle details.

  4. Pay the premium amount.

  5. Your motor insurance renewal is now complete, and the renewed policy will then be issued.

Here are the documents you require to complete this process:

  • Previous policy details

  • Proof of identity

  • Proof of address

  • Passport-sized photos

  • Bank account details

  • Driving Licence & RC

Motor Insurance Claim Process

The claim settlement process for vehicle insurance is a straightforward one. These are the few steps you need to follow:

  1. In case of an accident, inform your insurer immediately.

  2. Complete the car repairs and replacements.

  3. Submit the necessary documents.

  4. Once your documents have been verified, your claim will be settled.

Here are the documents you need for filing a claim-

  • Car insurance policy document

  • Vehicle details

  • Insurer details

  • Details of the Incident

  • FIR copy if needed

  • Original receipts of car repairs

Glossary

  • POLICYHOLDER:

Refers to the insured individual and owner of the policy

  • NO CLAIM BONUS (NCB):

Refers to the bonus that you are awarded if you have made no claims in the span of one year

  • RIDERS / ADD-ONS:

Optional covers for extending policy coverage

  • OWN DAMAGE COVER:

Compensation for the damage or loss of your own vehicle

Our Partners

Bajaj Allianz General Insurance Co.

With a great expertise in the insurance sector, Bajaj Allianz General Insurance Co. brings to you, extensive insurance plans that are designed to fit your diverse needs. Their insurance expertise marrying Bajaj Markets’ digital approach further offers you convenience, & great value for money!

Bajaj Allianz Life Insurance Co.

Securing your and your family’s future and safeguarding financial independence of your loved ones has been one of the key focus areas of Bajaj Allianz Life Insurance Co. This is why, Bajaj Markets brings to you, their life insurance products that act as financial backing at every step of life!

Acko General Insurance

Acko General Insurance Ltd. with its unique approach that marries technology with insurance, brings to you new-aged Acko Car Insurance plans that are well-designed to fit into your needs and budget too! From customization to affordability, you always have more.

Aditya Birla Health Insurance

We understand your needs and priorities. When it comes to protecting your valued assets, health is always on the top of the list. That’s why we bring you, health insurance by Aditya Birla Health Insurance, only on Bajaj Markets. With an extensive product portfolio of unique offerings like incentivized wellness and critical care, you need not look any further.

Latest Motor Insurance News

Hike in third-party motor insurance premium to be delayed due to technical issues

Due to some technical issues, the Ministry of Road Transport and Highways reissued the revised third-party motor insurance premium draft on March 17, 2022. The original draft issued on March 4, 2022, was supposed to allow insurance providers to enforce the revised premiums from April 1, 2022. However, due to technical difficulties, the revised premiums can only be implemented after May 15, 2022, as per reports. The new revision in third-party motor insurance premiums comes three years after being put on hold due to the pandemic where the last hike happened in May 2019.

- April 1, 2022

Hike in third-party premiums for motor insurance might not happen on April 1

As per a new report, the hike in third-party motor insurance which was previously announced and was set to be implemented on April 1, 2022, might not happen on the said date. According to the report, the hike in third-party premiums has been pushed to an unknown later date in April. The report also mentions that the government has proposed a 15% discount in premiums for electric vehicles and a 7.5% discount in premiums for hybrid-electric vehicles. There is also a slight dip in premiums to be paid by two-wheeler and car owners but rates have been hiked for taxis, trucks and buses. 

- March 24, 2022

Road Transport Ministry proposes hike for third-party insurance premiums

As per a new report, the Road Transport Ministry has proposed a hike in third-party motor insurance premiums for different vehicle types. According to reports, the new hike in motor insurance premiums is set to be implemented from April 1, 2022. As per the hiked premiums rates, private cars with a 1000cc cubic capacity will now have premiums of ₹2,094 compared to ₹2,072 previously. Private cars with a cubic capacity of 1000-1500cc will have premiums of ₹3,416 instead of ₹3,221 and cars with a cubic capacity of more than 1500cc will have premiums of ₹7,897 instead of ₹7,890. Two-wheelers with a cubic capacity between 150-350cc will have premiums of ₹1,366 and for two-wheelers above 350cc, it’s ₹2,804.

- Mar 07, 2022

No insurance payout to family of victim who died riding borrowed bike: Bombay HC 

The Bombay high court recently ruled that the dependents of an accident victim who died while riding a borrowed motorcycle are not eligible for any insurance compensation, as there was no third party involved in the accident. Section 163 Motor Vehicles Act sets liability on the vehicle owner for compensation to the third-party victim in case of death or permanent disability in an accident. However, since the victim was driving a bike borrowed from their brother and got into an accident where no third party was involved, the insurance company was not liable to pay compensation, ruled the court. 

- January 22, 2022

Insurance companies demand 15-20% rise in third-party motor insurance premiums 

As per a new report, general insurance companies have requested the insurance regulator to increase the rate of premium for third-party insurance policies. If the IRDAI approves this written request, the premium rates might go up from April 1, 2022. Generally, third-party premium rates are revised on an annual basis, however, thanks to COVID-19, it’s been put on hold since 2020. This comes after the rise in the number of third-party claims during the pandemic.

- November 14, 2021

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FAQs on Motor Insurance

✔️How to Buy Motor Insurance at Bajaj Markets?

You can buy motor insurance online at Bajaj Markets in these few easy steps:

  • Select your preferred coverage and vehicle type.

  • Fill out your personal details and vehicle information.

  • Get your documents verified.

  • Pay the premium amount, and you are done!

✔️What is covered by vehicle insurance?

The things covered under motor insurance, or inclusions, are as follows:

Accidental Damage

Third-party liability

Damage caused due to man-made calamity (riot , fire, strikes)

Damage/loss due to theft

Damage caused due to natural calamity (earthquake, hurricane, landslides)

✔️What are the exclusions of motor insurance?

Here are the scenarios that are excluded from vehicle insurance:

Driving with an invalid driver’s licence

Driving under the influence

Involvement of vehicle in criminal activity

Damage sustained outside the geographical region

Normal wear and tear of parts

✔️Which factors determine the vehicle insurance premium?

Here are the factors that together determine the vehicle insurance premium:

  • Vehicle Age

  • Geographic Location

  • Type of Coverage

  • Engine Capacity

  • Add-on Covers

You can easily calculate your insurance premium with the help of the Bajaj Markets insurance premium calculator, and choose the best motor insurance.

✔️What documents do I need to submit to settle a vehicle insurance claim?

Here are the documents you need for filing a vehicle insurance claim-

  • Car insurance policy document

  • Vehicle details

  • Insurer details

  • Details of the Incident

  • FIR copy if needed

  • Original receipts of car repairs

✔️Should my insurance lapse, what should I do?

Upon lapse of your car/bike insurance policy, you need to produce your vehicle for inspection. Post this, your motor insurance policy will be renewed. However, do keep in mind that if you have NCB in place but fail to renew your motor vehicle insurance policy within 90 days of it lapsing, it will get reduced to zero.

✔️I purchased my vehicle in another city. Is it still possible for me to renew the insurance policy even when am at a different place?

Sure, you can! With Bajaj Markets, all you need to do is fill out a new proposal form and follow protocol. This may include vehicle inspection and any other formalities that may surface. You can do this online, anytime and anywhere!

✔️I want to make certain changes to my existing motor insurance policy. How do I get about this?

Changes made to your motor insurance policy can be made through endorsements (written evidence). Endorsements can be made during the time of policy issuance to incorporate additional covers/benefits like legal liability for the driver of the insured vehicle or impose policy restrictions. The wordings used in such endorsements are directly provided by the insurer. In addition to the above, endorsements can also be used to document changes in name, address, vehicle, etc. You can raise a request for such changes by visiting the ‘Contact Us’ page on the website. Alternatively, you can copy-paste the following link to your device search bar and access the page directly: https://www.bajajfinservmarkets.in/contact-us.html.

✔️Should my vehicle be involved in an accident, when do I inform this to the police?

Incidents that result in injury to self or a third party, vehicle theft or third-party property damages need to be reported to the police immediately.

✔️What do you mean by cashless claims and non-cashless claims/reimbursement?

Let us segregate this to understand this better. Cashless Claims: Under this facility, charges related to vehicle repairs are paid to the garage directly from the insurance company. However, to avail this facility, the insured vehicle must be repaired at one of partner/network garages. Non-cashless/reimbursement: Suppose you end up having your vehicle repaired at a garage that is not part of our network, you will have to pay the charges. Post this, you can claim reimbursement for the amount by providing original payment receipts/bills. 

✔️What steps do I take if my vehicle gets stolen?

First things first, don’t panic. Get a hold of the situation and proceed to report this immediately to the police. Post that, get in touch with us on our Toll-Free Number - 1800-209-5858.

✔️Is it possible to transfer my vehicle insurance to the person who has purchased my vehicle? If yes, how?

Sure, you can transfer your car insurance policy or bike insurance to the person who purchases your vehicle. However, you need to inform the insurance company in writing about this insurance policy transfer. Post this, you will have to fill in a new proposal form, pay a fee to facilitate the transfer and NCB recovery on a pro-rata basis dated from the day of transfer till the expiry of the policy. You must also make note that this entire process must be recorded/done within 14 days from the transfer date else the insurance company will not be liable to pay any claim for own damage caused to the insured vehicle.

✔️What do you mean by the term ‘Deductible’?

The term ‘Deductible’ refers to any excess payment/amount over and above the claim payable by the insurance company. This amount ranges from Rs. 50 for two-wheelers to Rs. 500 for cars/four-wheelers/commercial vehicles. The increase in amount depends upon the vehicle carrying capacity. In some cases, the insurance company may charge an additional excess which is calculated basis the age of the vehicle and if there are many claims made for the same.

✔️What do you mean by IDV? How it IDV calculated?

IDV is the abbreviation for Insured’s Declared Value and refers to the current market value of the vehicle. This refers to the maximum sum assured that is fixed by the insurance company and is only provided in the event of vehicle theft or loss of the vehicle. IDV is calculated basis the selling price listed by the current manufacturer minus the depreciation percentage.

✔️I am looking for ways to reduce the premium on my car and two-wheeler. How do I do this?

Maintaining a claim-free record results in a No Claim Bonus which helps to reduce your vehicle insurance premium. Upon accumulation of NCB, you can avail of a discount on the Own Damage Premium of your vehicle. In addition to this, if you have an anti-theft device installed in your vehicle and the same has approval of the Automotive Research Association of India, you can avail of a discount of Rs. 500. You can also make use of voluntary excess to reduce your premium. This means you opt to bear the loss of a certain amount from each claim made.

✔️What do you mean by compulsory deductible?

Let us understand this with an example. Let’s say you have met with an accident and the cost of repairs amounts to Rs. 5000, you will need to pay some of the amount (assuming its Rs 1000). This amount is calculated based on the vehicle carry capacity and is known as compulsory deductible.

✔️What is meant by ‘Personal Accident Cover’?

Under this provision, you are provided with coverage against Permanent Total Disablement (PTD), Accidental Death, terrorism and any such acts that may arise out of terrorism.

✔️What do you mean by ‘Own Damage’ Premium?

‘Own Damage’ or OD Premium entitles the policy holder to make a claim for compensation in the event of damage caused to the vehicle due to earthquakes, fires, etc. One can also claim for compensation in the event of vehicle theft.

✔️In motor insurance terminology, what is meant by ‘Zero Depreciation’ / ‘Nil Depreciation’?

Also known as ‘zero dep’ or bumper to bumper cover, zero depreciation policy offers complete coverage without factoring in the depreciated value of the vehicle. In simpler words, should your car get damaged due to an accident/collision, with zero depreciation in place, the insurance company will pay the policyholder the entire cost claimed during settlement. This is an add-on feature offered by motor insurance providers and the premiums charged are more than what one would pay for a regular, comprehensive motor insurance policy. At present, we do not offer zero/nil depreciation cover However, with a standard car policy, only 50-100% of the expenses (for replacement of damaged car parts - plastic, fiber and/or metal) is provided by the insurance company. Replacing such parts can be expensive especially when you don't have zero depreciation cover.

✔️How do I get my customer portal user id and password?

You will receive your customer portal login credentials when the policy is issued. Also, if you happen to forget your password, you need to login to the customer portal (https://www.bajajfinservmarkets.in/cust/#/) using your registered email ID and click on the 'Forget Password' button. We will then send you a link to reset your password.

✔️Is it possible to renew my motor insurance from a different city?

Given that the entire process is online, yes, you can. However, this is only possible if your insurance policy has not yet expired.

✔️What is third-party liability coverage?

Third-party liability is a benefit offered by us that covers the following risks - 1. Accidents resulting in the injury/death of the third-party, 2. Damages resulting in damages caused to the third-party, and 3. Any such liability that is a result of the death of the third-party or if the injury that is stated is unlimited.