How will modification affect your car insurance

Modification and your car insurance policy
‘The only thing that is constant is change’, wrote Heraclitus, a Greek philosopher. He was right. That is why many of you make changes to your home, your wardrobe, your lifestyle, etc. In fact, many car owners also make changes in their cars. They fit various accessories or modify their cars as per their requirements. Major modifications to the car are done for the following reasons –
1.  To change the look of the car – This is done more with a view to make the car look more trendy and stylish thereby reflecting the fashion sense of the owner
2.  To make the car suitable for a disabled user – If the intended passenger of the car is disabled, modifications might be made to enable easy mobility of the disabled individual
3.  For suiting the driving terrain – if the car is primarily driven off-roads, changes can be made to the car’s tyres for suiting the driving terrain
4.  For improving the performance of the car – this is relevant when speed boosters or other performance oriented modifications are done to the car
5.   For changing the fuel type – in many cars, CNG kit or bi-fuel tanks are installed for fuel efficiency. This is also a type of modification
Modification and insurance
If the car is modified, it might change the value of the car. If the value of the car changes the premium would be affected. Therefore, in many cases of modification, the car insurance policy should also be modified. The policy should include details of the modification done, the increased value of the car and the subsequent increase in premium. So, if you are modifying your car in any way, you should consider modifying your car insurance policy as well. The following things should, therefore, be done in such cases –
• Inform your insurance company about the modification being done or already done on the car
• Submit all the relevant bills, documents and other paperwork which show the details of the modification and its cost
• The insurance company would, then, analyse whether the said modification has increased the Insured Declared Value (IDV) of the car or not.
• If the IDV is supposed to be increased, the company would increase the IDV and fix the new increased premium.
• You would, then, have to pay the additional auto insurance premium based on the increased IDV.
If you do not inform the insurance company of the modification, your car insurance policy does not reflect the said modification of your car. In case of any claim when the car is damaged and is sent for repairs, any damages sustained by the modified parts of the car would not be covered. The insurance company would, therefore, not pay for any damages incurred on any modifications. Moreover, if the insurance company does not record the said modification, you might land up in legal trouble in case you face any legal liability.
Now you know how modifications in car can affect insurance policy. So, do whatever modifications you want on your car but remember to get the same updated in your car insurance policy. You might be required to pay an additional premium but your modified car would be completely covered against any unforeseen contingencies.

Read more to find the factors affecting premium of your car insurance policy

Read more about types of car insurance covers and their benefits.


Making a car insurance claim? Here’s a complete guide

Having a car insurance policy is mandatory and so many of you feel that the policy is an unnecessary expense. But when there is an accident and you face damages, you realise the importance of a car insurance plan. It is because, such damages result in a car insurance claim where the insurance company pays for the financial loss. Making a car insurance claim is simple. It involves some simple steps and the insurer pays for the losses incurred. However, many of you are clueless when it comes to car insurance claims. You don’t know when does a claim occur and how to claim car insurance. So, here’s a complete guide to car insurance claims for your understanding.

When does a claim occur?

A claim is said to occur when –

  • You cause bodily injury to any third party
  • A third party dies due to an accident involving your car
  • You damage any third party property
  • Your car suffers damages and needs repairs
  • Your car is stolen
  • Your car is damaged beyond repairs

In any one or more of the above-mentioned incidents, your car insurance policy becomes eligible to pay for the financial costs faced.

Making a claim

Here is a step-by-step car insurance claim process of your car insurance policy for the above-mentioned contingencies –

If your car suffers any damage

  1. Inform the insurance company.

This is the first step which you should take in the event of a claim. If the insurance company is not informed of the contingency and you take any action yourself, making a claim later on would not be entertained by the company. So, as soon as you face any mishap, call the company’s 24*7 helpline number and register your claim.

  1. Provide the details of the accident

Upon being intimated, the insurance company would want to know the details of the incident. Describe the details completely for the company to understand the nature of your claim. The company would also require the insurance policy number, license number of the individual driving the car and the vehicle registration number. You should keep these details handy when informing the insurance company of a claim.

  1. Avail the claim reference number and take the car to the nearest garage.

After you describe the incident, the company would provide you with a claim reference number. This number should be noted and used in future claim follow-ups. The location of the nearest preferred garage would also be provided to you by the company. You should take the car to the nearest garage. In case of severe damages when the car cannot be moved, the company might also arrange for towing facilities to take your car to the nearest garage.

  1. Wait for the surveyor

Once the car reaches the garage, the insurance company arranges for a surveyor visit. The surveyor comes, assesses the damages of the car, prepares a claim estimate and submits it with the insurance company. Only after the surveyor’s report is submitted and approved by the company, would your claim be approved.

  1. Fill the claim form

You would have to take care of some paperwork to get your claim approved. The insurance claim form should be filled in and submitted with the insurance company. Important documents like the RC Book of the car, your driving license and copy of the policy document would have to be submitted with the claim form.

  1. Repairs Begin

Once the insurer approves the claim based on the surveyor’s report and your documents, repairs on your car begin. Once the repairs are completed, the bill is sent to the insurance company. The insurance company settles the bills directly with the garage.

  1. Pay the remaining claim and take delivery of the car

Some elements of the claim might be payable by you. For instance, there is a compulsory excess which has to be borne by you. Similarly, the depreciation on the replaced parts would be your out-of-pocket expenses. Pay the remaining claim which is not payable by the insurance company to settle the garage dues. Once the dues are settled, you can take delivery of your car.

For third party liability claims for car-owner

If any third party or property is harmed, the incident would be reported to the Motor Accidents Claim Tribunal (MACT). You would have to inform the insurance company and file a FIR with the police. The FIR is an important requirement in case of third party claims. If your car has also suffered any damages, you would have to follow the above-mentioned process. For third party damages, the insurance company would pay the claim based on the rulings of the tribunal.

Claim for stolen car

If the car is stolen, you should inform the company and file a FIR with the police. You would then have to fill and submit the claim form along with copies of the RC Book, driving license, intimation sent to RTO about the loss, policy document and the FIR. If the car is not located within three months of theft, the police issue a ‘Non-Traceable Report’. You present this certificate to the insurer. You should also transfer the RC book of the car in the insurer’s name and issue a letter of subrogation giving up all ownership rights to the car. After receiving and analysing the documents, the insurer would settle the claim. In most of theft cases, the insurance company demands you to submit both the original and duplicate car keys to eliminate the possibility of theft due to your negligence of leaving the key in the car.

Read more about how video uploads are making claims faster.

Also have a look at the video below to understand how to register for car insurance claims


Types of claims

Claims under your car insurance policy can be settled directly by the insurer or through reimbursement. Let’s understand –

  • Cashless claims – when the insurer directly settles the claim, it is called cashless claim. This is possible only if you get your vehicle repaired at a garage which is tied-up with the insurance company.
  • Reimbursement – if you take your vehicle to any other garage which is not tied-up with the insurer, your claim would be settled through reimbursement. You would have to get the car repaired at your expense. Then, you have to submit the repair bills to the insurance company. The company assesses the bills and reimburses you for the expenses you incurred.

So, this was the entire guide to making a successful car insurance claim. You should follow the process for easy claim settlements. Moreover, look out for exclusions. If you make a claim for an excluded cost, the claim would be rejected. So, understand the coverage of your policy before you make a claim.

Read more about most common exclusions in car insurance policy.

Read more about car insurance terminologies you should know.

Read more about types of car insurance covers and their benefits.



Buying a used car? Remember these 5 things

Used cars are steadily gaining momentum in today’s automobile industry. The reason is simple – individuals get to enjoy the comfort of a car without burning a hole in their pockets. For learners, used cars are better as they can practice their driving skills before investing in a good model. Thus, the used car market is becoming popular. Based on a study conducted by Techsci Research, here’s how the used car market has grown and is expected to grow in the coming years –

(Source: )

Though used cars are a good way to own a car at a small budget, you should be careful when buying them. The following are five tips for buying a used car in India –

5 things to check when buying a used car

  1. The car’s condition and the asking price

The first thing which you should check is the condition of the car. If the seller is selling his old car, chances are that the car is not in a very good working condition. So, check the mileage, engine capacity and performance of the car. Moreover, the price of the car should also be checked. You should make sure that the car’s price is proportionate to the car’s age and condition. You can choose verified and trusted dealers of used cars who offer verified cars at verified prices.

  1. The car’s papers

Buying a used car involves change in ownership of the car from the seller to you. In such cases, the change in ownership should reflect in all documents associated with the car. So check whether the car has all the relevant and necessary paperwork. Some important documents which you should ensure include the RC book of the car, insurance certificate, PUC certificate, road tax certificate, original invoice, etc.

  1. Transferring of RC Book

The Registration Certificate (RC) of the car is an important requirement for you to have. It lists the manufacturing year, registration year and other details of the car. The car should have its RC book which should then be transferred in your name when you buy the car. Ensure that the car’s RC book is available and that it is transferred in your name so that you become the legal owner of the car.

  1. Transferring the insurance policy

The car you are buying must have a car insurance cover on it as it is mandated by the Motor Vehicles Act, 1988. Originally, the insurance policy is in the name of the seller of the car. When you buy the car, the policy would be transferred in your name. The seller has to get the policy transferred. When the policy is transferred, a new Insurance Certificate would be issued containing your name as the policyholder. However, the No Claim Bonus in the existing policy would stay with the old owner. If you had an existing car insurance policy, you can transfer its NCB to the used car policy.

Read more about role of insurance in trading a used car.

  1. Fixing the car before using it

The used car might have glitches which need fixing before you are able to drive the car. Ideally, the car should be in perfect working order when you buy it. If it isn’t, ask the seller to fix the car before you buy it. You can also fix the car yourself as per your requirements.

So, if you are considering buying a used car, remember these points as your used car buying guide. They would not only help you in buying the car smoothly, they would also ensure that you don’t face unpleasant surprises when you start using the car. A little awareness is never dangerous, is it?

Read more about anatomy of car insurance plan.

Read more about types of car insurance and it’s benefits

Check out our video to understand things to keep in your mind before buying a second hand car

Top tips for cheap bike insurance

Who doesn’t like saving money? Whenever you set out to buy something you always look for offers and deals which would reduce your expenditure. This is one of the reasons why the online medium of shopping has gained such popularity. It offers cheaper rates and helps you in saving your hard-earned money. What if I tell you that you can also reduce the premiums of your bike insurance policy?

Yes, you heard me right. There are tips and tricks which, if followed, reduce your premium outgo and make bike insurance cheap. Are you aware of these tips? Let’s discover them, shall we?

Top tips for cheap bike insurance

  • Compare

The first tip when buying bike insurance is – ‘Compare’. There are numerous bike insurance plans in the market today. Each plan has its own set of coverage benefits and charges a different premium rate. If you are to buy a cheap bike insurance policy, you should compare before buying. Comparing would allow you to know the available premium rates of different policies along with the corresponding coverage benefits. You can, then, choose a policy which offers the best coverage at the lowest premium rate and save on premium costs. You can compare and buy bike insurance on

  • Look for the available discounts

Did you know your bike insurance policies offered premium discounts?

Yes, to sweeten your bike insurance purchase you can avail discounts in your policy. There are various types of discounts which are available. You can get a discount if you buy a long-term policy and pay premiums at once. If you are a member of a reputed automobile association, you can avail a premium discount. There is another discount for buying the policy online. Lastly, if you install safety devices in your two-wheeler, your premium gets discounted. You can avail any one or all of these discounts in your bike insurance plan. Wouldn’t the plan become cheap then?

Read more about top 5 ways to get discount on bike insurance

[xyz-ihs snippet=”renew-bike-insurance”]

Utilise the No Claim Bonus discount

If you don’t make a claim in your two-wheeler insurance policy, you get a No Claim Bonus (NCB). This bonus awards you a discount in the renewal premium. The rate of discount starts at 20% and increases every subsequent year if you maintain a claim-free record. In fact, if you have not made a claim for five successive years, you can avail a discount of up to 50%. Amazing, isn’t it? So, when renewing your bike insurance policy, look out for the accumulated NCB discount and utilise it.

  • Renew on time

Wise men say that delay costs more. They are right. If you delay the renewal of your bike insurance plan and the policy lapses, you would have to part with a higher premium on subsequent renewals. Moreover, if the renewal is not done within 90 days of lapse, you also lose out the accumulated NCB. So, heed the advice of wise men. Renew your bike insurance plan on time and ensure lower premiums.

  • Buy long term two-wheeler policies

Thanks to amendments made by the Insurance Regulatory and Development Authority (IRDA), two-wheeler insurance policies are, nowadays, being offered for longer tenures. You would find plans with a continuous coverage period of 2 or 3 years. These long-term plans are relatively cheaper on your pockets. Firstly, the third party premium remains constant during the continuous coverage tenure. Secondly, you don’t lose the No Claim Bonus completely even in case of a claim. This helps you in earning renewal premium discounts. Lastly, long-term plans allow you premium discounts (as stated earlier). So, given these three cost-saving benefits, buying a long-term policy is a better choice.

Read more Third party premiums have changed

[xyz-ihs snippet=”renew-bike-insurance”]

  • Choose voluntary excess

Every bike insurance policy has a component of compulsory excess. Compulsory excess represents the amount of claim which is borne by you whenever a claim is made. Along with this compulsory excess there is also an option of choosing a voluntary excess. Voluntary excess, also called voluntary deductible, is the part of claim which you voluntarily undertake to pay from your pockets. Since choosing a voluntary excess reduces the insurance company’s claim burden, you are rewarded with a premium discount. So, for a cheaper bike insurance policy you can also choose a voluntary excess.

Also, check out our video below which simplifies the terms like compulsory & voluntary excess

These tips help you to save on your two-wheeler insurance premium. You can pick one or more of these tips for a cheaper bike insurance policy on your two-wheeler. Happy saving!

Read more buying bike insurance through turtlemint

Read more top 10 smart bikes that are cheap to insure

Do you know about excess in your motor insurance policy?

A motor insurance policy has some technical concepts which are often not understood by the common folk. As such, when buying the policy the concepts are ignored and at the time of a claim, this ignorance results in a loss. So, it is always better to understand the important concepts of your motor insurance policy. One such technical and important concept is excess. Do you know about it? Let’s find out –

Excess in motor insurance policy

Excess represents that part of claim which is payable by you. In each instance of claim, you have to pay the specified amount yourself. The insurance company would then pay the remaining amount.

Types of excess:Motor insurance policies have two types of excess- compulsory excess and voluntary excess

  • Compulsory excess in motor insurance – as is evident from the name, this excess is mandatorily borne by you. The amount is fixed and not within your control. Both car and two-wheeler insurance policies have a compulsory excess.
  • Voluntary excess in motor insurance – voluntary excess is a way to reduce your premium. Sometimes, customers want to decrease their premium and they choose voluntary deductible. Choosing voluntary deductible lowers the premium rate by making the customer bear a certain portion of the claim amount voluntarily.


Difference between compulsory and voluntary excess:

While compulsory excess is universal in all motor insurance policies, voluntary excess is at the discretion of the policyholder. Therefore, choosing a voluntary excess earns a premium discount while compulsory excess doesn’t.

Why the concept of compulsory excess?

The concept of excess is applicable in a motor insurance policy to dissuade you from making small, trivial claims. When you know that the extent of the excess is payable by you, you would refrain from making small claims in your motor insurance policy. This would also help you save your no claim discount.

How compulsory and voluntary excess work?

Suppose, in a motor insurance policy, the compulsory excess is Rs.2000. On top of that, you choose a voluntary excess of Rs.1000. If there is a claim of Rs.10,000, you would have to pay Rs.2000 of the compulsory excess and Rs.1000 of the voluntary excess. You, therefore, pay Rs.3000 while the insurance company settles your claim for Rs.7000.

When to choose voluntary excess?

Since you have no control over compulsory excess, you should be careful when choosing voluntary excess. If you are a good driver with a clean driving record and are very careful, you can opt for voluntary deductible. Since the incidence of claim would be low given your driving skills, you wouldn’t have to bear high proportions of claims and can also earn a premium discount.

Things to keep in mind before choosing voluntary deductible

Remember the following things before you think of choosing voluntary deductible in your policy –

• Affordability

Voluntary excess denotes your out-of-pocket expenses. As such, be careful in choosing the amount. Since you would already have the responsibility of paying for the compulsory excess, choose voluntary excess only if the total of the two excesses is affordable for you.

• Economy

Though the associated voluntary deductible discounts might tempt you, assess the economy of choosing the voluntary excess. If the discount earned is lower than the out-of-pocket expense on the excess, choosing a voluntary excess is not economical.

Understand the two excesses applicable in motor insurance policies as they have an impact on the claim settlement. They represent out-of-pocket expenses and so you should be aware about both.

Read more about 5 things that impact your car insurance premiums

Read more about How much car insurance do you really need?

Read more about All you need to know about car insurance

Read more about Types of car insurance covers and their benefits

Check the below video to know more about compulsory excess

6 common myths about child insurance plans

Child insurance plans are life insurance plans which are designed for creating a secured financial corpus for your child. The plan has an inbuilt premium waiver benefit wherein the future premiums stop if the parent dies during the policy tenure. Thus, the plan creates a secured corpus with or without the parent’s contribution and is an ideal financial tool for your child’s future.

Beneficial as the plan might be, there are a lot of myths attached to it. Most of us don’t understand the finer details of child plans and develop preconceived notions. These myths prevent you from buying a child plan. Here are some common and popular child plan myths vis-à-vis the realty –

    • Only the child is covered under the plan

      Many of you believe that child insurance plans cover only the child. This is wrong. There are two types of child insurance plans, one which cover the child and the other which cover the parent. Usually, you would find most child plans to cover the life of the parent. In case of the parent’s demise, the premium waiver rider is triggered and the plan continues till maturity. So, when buying a child plan, find out whether the plan covers the child or the parent.


    • The policy ends if the parent dies

      No it doesn’t. That is the beauty of a child insurance plan. The plan has the premium waiver rider inbuilt in its coverage features. If the parent predeceases the child, the rider becomes effective. If the parent was covered under the plan, the death benefit is paid immediately on death of the parent. Thereafter, the plan continues. Future premiums are paid by the insurance company till the time the plan matures. On maturity, the promised maturity benefit is paid again irrespective of the death benefit already paid. Thus, death of the parent doesn’t affect the continuity of the child plan. The plan runs for the chosen tenure by virtue of the premium waiver rider creating a secured fund for the child’s future.


    • The policy is suitable only for meeting the child’s education costs

      A child insurance plan doesn’t levy any restriction on the usage of the plan’s benefits. When the plan benefits are paid, they are not supposed to be only for the child’s future education. You can use the benefit as you please. It is only recommended and deemed by the insurance company that the plan benefits would be used for the child’s higher education. You are free to use it any other way you like.


    • The policy might not be sufficient to meet inflated costs in future

      This is a debate which many of you have against child insurance plans. Well, you are wrong. Child insurance plans are also offered as unit linked insurance plans (ULIPs). If you buy a child ULIP, the premiums you pay would be invested in the capital market. Thereafter, your investments would grow according to the growth in the capital market. As you know, capital market growths are inflation-adjusted. Therefore, child ULIPs provide a sufficient corpus for meeting inflated costs in the future.


    • The terms and conditions of the policy are difficult

      Only people with limited understanding of insurance believe in this myth. Since some concepts of life insurance plans are technical, many believe that the terms and conditions of a child plan are also difficult to understand. They can’t be more wrong. Child plans are simple. You just have to understand who is covered under the plan (parent or child), the benefits promised, the tenure and the premium you have to pay. Moreover, you must be a parent to become eligible to buy the plan. The rest is easy. The plan would continue for the chosen tenure promising a maturity benefit even if the death benefit is paid.


  • The policy locks in the investment for a long period

    Insurance plans come with a long-term perspective and so many of you believe in this myth. But this is a not entirely true. If you buy a traditional child plan, you get the option of availing policy loans after the first two or three years. This loan facility gives you access to your funds when required. In case of child ULIPs, partial withdrawals are available. You can withdraw from your fund value, partially, after the first five policy years. Thus, child plans allow liquidity. Even if your investments are locked for a long period, the plan promises a corpus for your child’s future. Isn’t creating a secured corpus for your child a long-term effort?

Here are more life insurance myths for you to bust

If you believe in any of these myths, it’s time to see the reality. Child plans are the only tools which promise a secured future of your child even in case of your early death. So, understand the benefits of a child plan and buy one if you are parent.

Read more about Why are child insurance plans ideal for your child.

Read more about Ask these things to yourself if you are considering of not buying life insurance.

Visit our site to find the right child insurance plan.

5 best ULIP plan to invest in 2018

Unit linked insurance plans are dual benefit insurance plans. They not only provide the quintessential life insurance coverage, but also market linked returns on your invested premiums. ULIPs are, therefore, investment avenues which provide inflation adjusted returns and grows your money with the growing economy.

Nowadays, the unit linked plans which are available offer more in terms of features. They not only give you market linked returns but also loyalty additions and other benefits. That is why buying a ULIP makes for a good investment. Here are the best five ULIPs which you can consider for investments in 2018 –

    1. Edelweiss Tokio Wealth Ultima

      Wealth Ultima offered by Edelweiss Tokio offers many benefits which make it one of the best unit linked plans available in the market today. Some of the main benefits include the following –

      • You have the choice of managing your investments yourself or let the insurance company manage them based on its pre-defined investment strategies
      • Systematic Monthly Plan requires monthly premiums which are affordable and also give you the benefit of rupee-cost averaging
      • Under Systematic Transfer Plan (STP) investment strategy, the gains are protected from volatile market movements
      • There is a Systematic Withdrawal Plan under which you can withdraw your fund value systematically. This helps you in generating a source of regular income
      • Guaranteed additions, loyalty additions and wealth boosters are added to the fund value besides the market-linked returns
      • The plan can be taken to run lifelong till you attain 100 years of age


    1. HDFC Life Click 2 Invest

      HDFC Life is a reputed and leading insurance company. Its Click 2 Invest plan is a good plan because of the following reasons –

      • In case of death, the sum assured or the fund value, whichever is highest is paid
      • Premiums can be paid regularly, for a limited time or in one lump sum
      • There are 8 investment funds for asset allocation
      • No premium allocation or administration charges are levied under the plan


    1. ICICI Prudential Smart Life Plan

      This is a child oriented ULIP plan which has an inbuilt premium waiver rider. The plan thus helps you in fulfilling your child planning need. The benefits of the plan include the following –

      • Even if the insured dies, the plan continues after the payment of the death benefit. The company pays the premium till maturity whereupon the fund value is paid
      • There are two portfolio strategies of Fixed portfolio strategy and lifecycle based portfolio strategy
      • Loyalty additions and wealth boosters are added under the plan


    1. Bajaj Allianz Life Future Gain Plan

      When it comes to insurance, one cannot forget Bajaj Allianz which is one of the leading insurance companies in the insurance market. Future Gain plan offered by the company scores on various fronts which include the following –

      • Five optional riders are available for making the coverage under the plan more comprehensive
      • Top-up premiums are allowed if you want to increase your investment under the plan
      • You can choose to invest your premium yourself or invest according to the pre-defined investment strategy available under the plan
      • You can also change the investment strategies during the term of the plan


  1. Bajaj Allianz Life Future Wealth Gain Plan

    This plan is a step up from the Future Gain Plan. The plan provides enhanced death benefit and is thus a good plan. Here are its salient features –

    • Two variants of the plan are available – Wealth Plus and Wealth Plus Care
    • Inbuilt cancer cover is available under Wealth Plus Care
    • In case of diagnosis of cancer during the plan tenure, regular income is paid under the plan. Each income is equal to the annual premium paid under the policy
    • Optional riders are available under both the plan variants
    • Loyalty additions and fund boosters help in enhancing the fund value
    • You can choose to invest your premium yourself or choose the readymade investment strategy offered by the insurance company

All these plans promise something extra. They give insurance cover, provide market-linked returns and also provide unique benefits of guaranteed additions, enhanced scope of coverage and readymade investment strategies. So, take your pick of ULIP from this list and enjoy the benefits the plans provide.

Read more about Life insurance policy in India – How does it work?

Read more about Common terms in life insurance policy

Read more about Types of life insurance