Car Insurance

About Car Insurance

Why Do You Need Car Insurance?

Car Insurance is a mandatory piece of document that is required for you to drive on Indian roads, whether you own a private or a commercial vehicle. Apart from being mandatory as per law, Car Insurance acts as an effective financial coverage against the unfortunate damages caused your car in case of an accident. It ensures that you are financially backed, when it comes to paying for the damages caused to the third-party or your own car.

So, here’s why you need a Car Insurance:

• Car insurance is mandatory

Car Insurance is mandatory as per the Motor Vehicle Act of 1988. If you are caught driving an uninsured car, you are liable to pay a penalty, and can even lead to imprisonment.

• Car, property and personal accident covered

A car insurance policy covers personal accidental injury costs, you do not have to worry about your treatment expenses.

• Cover for natural and man-made calamities

With damages caused due to natural and man-made disasters covered, a car insurance policy helps you stay ahead of life’s uncertainties

• Legal Liabilities covered

A car insurance cover takes care of the expenses incurred in legal procedures in case your car accident involves filing a legal case.

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Different Types of Car Insurance Plans

There are two types of car insurance plans: Comprehensive Car Insurance & Third Party Car Insurance. You can pick the plan you need as per your requirements.

• Third Party Car Insurance

A third-party car insurance cover is a basic insurance plan that covers the injuries caused to third parties and the damage incurred by the third-party property due to your insured car. Moreover, third party car insurance is mandatory as per the New Motor Vehicle Act and can result in a penalty or in worse cases even imprisonment. A third-party cover ensures that that you are on the right side of law. Hence, it is very essential to get this plan. The third-party car insurance covers injuries caused to third parties or their property. This also includes a basic personal accident cover for the person driving the car. The personal accident cover insures you against permanent disabilities and even death while driving your car.

• Comprehensive Car Insurance

A comprehensive car insurance plan is an enhanced cover compared to the third-party car insurance plan. It includes both, the third-party cover and own damage cover. With a complete protection, the cover helps manage legal liabilities and offers an extensive financial protection. Although you have to pay a slightly higher premium for a comprehensive plan over a third-party plan, it is still advised to go for this plan. Comprehensive car insurance brings together the benefits of third-party coverage, personal accident cover and own damage cover. Any damage due to unfortunate scenarios like natural & man-made calamities, and theft is covered under the comprehensive plan.

Difference between Third Party Insurance and Comprehensive Car Insurance

Read on to understand the difference between third party insurance and comprehensive insurance

Why Should You Compare Car Insurance Plans Online

Comparing car insurance online before purchasing is a very important task. It helps you pick the right plan as per your needs. All you need to do is, go through the product details on Finserv MARKETS and choose the policy you need.

Here’s why you need to compare plans online:

• Convenience

Comparing car insurance plans online is very convenient! You can surf the product details and make a well-informed decision

• Cost-Effective

When you compare and choose online, there is no need of a middle man, thereby making it a cost- effective process

• Customer Reviews

It is easy to understand the reliability of the product and the insurer by going through the customer testimonials, so you can pick the product that has proven beneficial for many with such benefits and more, comparing car insurance is much more effective when you do it online!

How to Compare Car Insurance Online?

Online car insurance calculator has made it easier for customers to view the premium amount payable, instantly. It is important to keep certain factors in mind, while we compare car insurance premiums online.

Here’s what you need to consider:

• It is important to examine factors such as the features and inclusions to identify the right choice.

• Insurance cover is the next important factor that lets you select the plan. Typically, lower the premium, lower is the insurance cover. Hence, it is important to go through the plan details.

• Check for the add-on covers made available with the plan, so you can enhance your financial protection against damages.

How to Calculate Your Car Insurance Premium

With the car insurance premium calculator on Finserv MARKETS calculating your car insurance premium online is quick, simple and convenient.

Here’s how you can calculate your car insurance premium online:

1. Enter your car’s registration number & your mobile number

2. Confirm if your existing policy is expired

3. Fill your car details including registration number, make & model, fuel type, and more

4. Select the plan of your choice!

5. Provide your personal information such as date of birth, address, etc.

6. And that’s it! Your car insurance premium will be displayed on screen

List of Different Add-On Covers Available on your Four Wheeler Insurance

Here are some of the add-on covers available with Car Insurance plans available on Finserv MARKETS.

1. Personal Baggage Cover - Covers you in case of any loss or damage caused to your personal belongings kept in the car during an accident

2. Lock & Key Replacement Cover – Cover for recovery of the car keys, in case lost or left inside the car

3. Roadside Assistance - Provides emergency roadside assistance for services like urgent fuel delivery, flat tyre repair, urgent car fixing, cab services, and towing

4. Engine Protector – Covers for engine damage due to lubricating oil leakage or due to water seepage or any such incidents

5. NCB cover - No Claim Bonus cover offers guaranteed NCB benefits even after raising up to 2 claims in a single policy year

6. Consumables Cover – Covers costs incurred in the repair or replacement of consumables like engine oil, coolant, brake oil, after an accident

7. Personal Accident Cover – Covers the expenses in the event of accidental death, permanent disabilities or bodily injuries caused to the driver of the insured car

8. Zero Depreciation cover - With no depreciation in the value of the car’s external parts, this cover takes care all car body repairs or replacements.

9. Accessories Cover – Covers for damage incurred to your car’s accessories in case of any mishap

Car Insurance Renewal

Apart from getting your car insured, it is crucial to keep the plan running, so you are not stranded in case of emergencies due to an in-active policy. Car Insurance renewal is very important part of this process. To continue to reap the benefits of your car insurance plan, you must renew it on time. On Finserv MARKETS, we have made this process, just how you need it, quick and simple!

Lastly, don’t miss out on checking your eligibility for No Claim Bonus (NCB) benefit at the time of policy renewal. Timely renewal and no previous claims help you enjoy great discounts on renewal premium, through the NCB benefit.

Steps to Renew Car Insurance Offline

Getting your car insurance policy renewed online is much simpler process compared to the offline process. However, if you choose to go by the traditional way of renewing your car insurance policy offline you can simply visit the branch office of the insurer of your choice, fill up the details, submit the necessary documents for renewal, make payment and renew your plan.

Why Renew Your Car Insurance Before Expiry

Car insurance policy renewal is extremely important when it comes to keeping all your coverage benefits intact. Moreover, it is even more crucial to get it renewed on time and before your existing policy expires.

Here’s why:

• Vehicle inspection-

Insurers often allow renewal without inspection or online inspection, so you can renew your plan at the comfort of your home. However, in case your policy is lapsed, inspection of your vehicle becomes mandatory. Hence, it is advised to get your policy renewed on time.

• NCB benefit-

You may not be able to enjoy the NCB benefit in case your policy is not renewed on time.

• Damage risks-

With a lapsed car insurance policy, your financial back-up stands nullified, thereby increasing the risk for both, you as well as the car.

Car Insurance Claims

From sudden accidental damage, to car theft, a car insurance policy covers all the damages incurred to your vehicle due to theft or accident. While getting car insurance is the first step to security, the next crucial step is to understand how claims can be registered, in case a mishap was to occur.

Typically, car insurance companies offer two types of car insurance claims: Cashless claim & Reimbursement claim. Cashless claims are nothing but the facility under which you can get your car with accidental damages repaired at the nearest network garage, where the insurer takes care of the repair costs and same are settled directly with the garage. In case of reimbursement claims, you can get your car fixed at your preferred garage at you’re your expenses, while the claim amount is then transferred to your bank amount, subtracting the deductibles.

How to Claim Car Insurance Online

The claim settlement process is similar across most insurance companies in India. Finserv MARKETS just makes it even more easy for you!

Process for Filing Cashless Claims

1. Register the claim & inform the insurer. You may do so by calling their toll-free number or by visiting their website

2. Get your car repaired at an nearest network garage

3. Submit all the required documents

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

Process for Filing Reimbursement Claims

1. Informing the insurer about the damage

2. File a FIR in case of vehicle damage due to third party or theft & Submit its copy along with other documents

3. Get your car repaired at any nearest garage at your own expenses

4. Submit the original bills and payment receipt to the insurer

5. Once the documents are verified, your claim amount is reimbursed

Documents Required for Claiming Car Insurance

Take a look at the important documents that you need for claiming a car insurance.

• Car insurance policy document

It is undeniably one of the basic documents required for car insurance claims

• Vehicle details

All the details of your insured vehicle

• Insurer details

Personal details of the insurer

• Details of the Incident

All the details of the incident specifying the location and the date of the accident

• FIR copy in case of theft

• Original bills and receipts of the vehicle repair

Glossary

Here are some important car insurance terms:

• POLICYHOLDER

A policyholder is the owner of the policy

• IDV

Insured Declared Value (IDV) is one the key determinants of your policy premium. It is the market value of your car agreed upon by the insurer and policyholder. It lowers with the age of your age due to depreciation

• NO CLAIM BONUS (NCB)

No Claim Bonus is the premium discount or bonus that your insurer rewards you with, in case you have made no claims on your car insurance policy in the previous year.

• RIDERS / ADD-ONS

These are extra coverage options voluntarily chosen by a policyholder while buying a policy. Although, they increase the premium amount you pay, they also enhance your protection against unfortunate mishaps.

• OWN DAMAGE COVER

With the Own Damage cover, you get compensated for the loss or damage of your car.

• DEDUCTIBLE

A deductible is the small amount that you pay out of your pocket, while the rest is taken care of by the insurer, in case of repairs due to accidental damage to your car. This way, you can lower your premiums.  

Latest Car Insurance News

Motor Insurance - FY 21 : Rs. 64,522 Cr premium earned, Rs. 35,519 Cr claims paid

According to India's Insurance Information Bureau, in the fiscal year of 2018-19, the annual report of the motor insurance stated that Indian general insurance companies settled claims of Rs. 35,319 Crore, whereas the total premium that was underwritten was Rs. 64,522 Crore.

One of the biggest lines of businesses continues to be car insurance as insurers nearly share 40% of total underwritten premiums, considered at Rs 64,522 Crore along with a 9% growth rate for the FY 2018-19. For FY19, the total number of policies and distribution of the premiums were very close to the previous fiscal year.

Car insurance must gear up for autonomous vehicles

The mobility sector constantly keeps disrupting with new entrants in the market and developing technologies. Thus, insurance companies must closely work alongside manufacturers to ensure policies and regimes are fit for the required purpose. Car accidents are caused due to human error in more than 90% of the cases. The change to automation offers an optimistic scenario in car insurance as the risk is reduced overall and the number of accidents would drastically decline. Although manufacturers might face an increase in claims to accidents than usual comparatively in the liability of their products, they also benefit from the dip in the number of accident risks.

Timely renewal of motor insurance policies is a must

General Insurance Council, a representative of the insurance companies recently stated that renewing car insurance at the earliest is mandatory. The council stated that the MoRTH letter released on the 24 August that advises the state governments regarding the validity of the motor vehicle papers is with regards to permits, fitness certificates, registration certificates, and driving licenses only. On this ground, the car insurance policyholders must note that the MoRTH letter does not include motor insurance policies like car insurance, which hence, needs to be renewed as per the renewal due for continued validity of the insurance policies.

Explore all the car insurance FAQs to find more answers.