Month: June 2021

A car insurance policy is mandatory under the Motor Vehicles Act, 1988. That is why if you are buying a car or have one, you are required to have a valid car insurance policy on the same. There are two types of car insurance policies generally offered by the insurance companies – third-party liability, which is mandatory under law, and comprehensive car insurance policy which covers third party liability and own damages.

The car insurance policy number is a unique number that is printed on the policy document. It is allotted by the insurance company to every policyholder. It helps the company identify the policy account. The policy number is a numerical digit that you get after the policy is issued. 

If you buy your car insurance policy online, the number can be found on the soft copy of the policy document sent to your email ID. For offline policies, however, you would find the number printed on the policy document when you get the hard copy of the same. 

What is a car registration number? 

Vehicle number means the registration number of your car. Your car registration number is a unique number allotted to the vehicle by the Regional Transport Office of your district. When you buy a car, you will have to register it with your local RTO within a period of 30 days of buying it. The respective RTO will give you a unique registration number which serves as an identification of your car and its owner, i.e. you.

The vehicle number, or the registration number of the car, consists of 10 digits in which the first two digits signify the state in which your car is registered, the next two digits are the district code and the last four digits are your car’s unique identification number. For example, if your car registration number is WB 28 ST 4509, WB stands for West Bengal, 28 refers to the district of the state in which the car has been registered and 4509 is the unique identification number of your car. 

When do you need your car insurance policy number? 

Your car insurance policy number is required in several instances. Therefore, you should keep the physical copy of your car insurance policy handy while driving a vehicle. Some of the instances when you need your car insurance policy number are as follows: 

1. In case of making a claim

   The insurance company asks for your car insurance’s policy number when you are registering your claim. Additionally, when filing a police FIR in the case of a third party or theft claims, the police might also require your car insurance policy number to be mentioned on the FIR. Thus, when making claims, the policy number is needed.

2. Renewing the insurance policy

   The car insurance policy number is essential at the time of renewing the policy. If you renew your existing policy, you would have to provide the car insurance policy number to retrieve your details. 

   You can also buy a new insurance policy on renewal and transfer the existing no claim bonus to the new policy. In such cases too, the policy number would be needed when filling up the form for the new plan.

3. For checking car insurance details

   If you don’t have your car registration number handy and you need to check the details of your insurance policy, you can use your car insurance policy number to do the same. Similarly, you can also use your car registration number to check the policy details if you do not have a car insurance policy number handy. 

4. For the purpose of verification

   The car insurance policy number is required when the traffic police stop your vehicle to check the validity of your insurance policy. In such a case, even if you do not have a physical copy of your policy document, you can provide your car insurance policy number which would allow the law authorities to check the validity of your insurance online.

5. To apply for duplicate documents

   Though it is much easier to check or retrieve your car insurance policy online, you may require physical copies of the document for various purposes. Hence, if you have lost your car insurance policy document, you can apply for a duplicate one. You would require the policy number in order to apply for a duplicate car insurance policy. 

   Your car insurance policy number is, therefore, important and should be kept handy at all times.

Different ways to find your car insurance policy number using car number

If you have lost your policy document or have forgotten your car insurance policy number and need to access it, your vehicle number would come in handy. You can find your car insurance policy number through your vehicle or registration number. 

When you buy your car insurance policy, it gets linked with your car registration number making it easier to check the details of the policy with the help of the registration number. Below are some of the ways how to find insurance policy number by vehicle number:

Online 

There are different ways to check your car insurance policy number online. If you want to know how to find car insurance policy number online, here are your options: 

1. You can visit the official website of the Regional Transport Office in which your car is registered and fill in your registration number to check your car insurance policy number
2. The Insurance Regulatory and Development Authority of India has developed a website known as the Insurance Information Bureau (https://iib.gov.in/). You can access the website for checking car insurance policy number online using your registration number
3. You can visit the State Transport Department website and find the details of your car insurance policy using your registration number
4. The website of the Ministry of Road Transport and Highways (https://parivahan.gov.in/parivahan/) also contains the details of the car insurance policy issued on your registration number. You can, thus, access the details of the insurance policy on the website by entering your registration number. 
5. You can also visit the official website of the insurance company and use your registration number to log into your account to check your car insurance policy number. By logging into your account, you can also check various other details of your car insurance policy. 

Alternatively, if you do not remember your car registration number, some insurance companies provide a mobile application facility in which you can log in to your account through a mobile number. After you log in on the mobile app, all the details of your car insurance policy will be reflected including the policy number. You can, thus, access your car insurance policy number through the mobile application anytime anywhere. 

Offline

You can take the help of the insurance aggregator or the broker from whom you brought the insurance policy. Alternatively, you can also call the insurance company or visit the nearest branch of the insurance company and provide your car registration number along with certain personal details as may be required. The insurance aggregator or the executive of the branch will help you find your car insurance policy number. 

A car insurance policy number is the identification number of your car insurance. It should, therefore, be stored carefully. If you forget or misplace your car insurance policy number, you don’t have to worry. If you are looking for an answer to how to find my car insurance policy number online, the answer is your car registration number. Use the number and opt for any of the methods stated above to find your car insurance policy number.

Frequently Asked Questions

1. Does my car insurance policy number stay the same on renewal?

   If you renew the policy with the same insurance company, your car insurance policy number would stay the same. However, if you switch insurers, the policy number would change. You should, thus, keep the latest policy number handy at all times.

2. Is the proposal number similar to the policy number?

   No, the proposal number is different from the policy number. The proposal number is the number that is applicable when you apply for a car insurance policy. Once the policy is issued, another formal number is issued which is called the policy number.

3. Would I have to pay a fee for requesting a duplicate copy of the insurance policy?

   The requirement of the fee depends on your insurance company. Many companies charge an administrative fee for issuing a duplicate policy copy. Others don’t. So, check with your insurer if you need to pay a fee for a duplicate copy and pay the fee, if applicable, to get the copy at the earliest.

4. What is an Insurance Certificate?

   The Insurance Certificate is a one-page document that contains the details of your car insurance policy, including the policy number. It is recommended to carry the certificate in the car so that you can produce it when required. 

5. Does my RC book contain the car insurance policy number?

   No, the RC book does not contain the details of your insurance policy. As such, the car insurance policy number is not recorded in the RC Book.

Taxis are the means of public transport that help you travel from one place to another if you don’t own a vehicle or if your vehicle is otherwise unavailable for commuting. Taxis are commercial vehicles, also called Passenger Carrying Vehicles (PSVs). Thus, they have to fulfil the traffic rules and regulations to run on Indian roads. Under the provisions of the Motor Vehicles Act, 1988, taxis in India should carry a valid insurance policy before they commute on the road and/or carry passengers. This is where a taxi insurance policy comes into the picture.

What is taxi insurance?

Taxi car insurance is a commercial vehicle insurance policy available for vehicles used commercially to transport passengers. The policy is issued by general insurance companies and should be bought by taxi owners before they use their taxis for transportation purposes.

Features and benefits of taxi insurance

A taxi car insurance policy has various features and benefits. Some of these are mentioned below –

• There are two types of insurance plans available for insuring a taxi – a third party liability cover and a comprehensive package policy.
• Third-party coverage is mandatory as per law. It protects you against legal liabilities suffered if any third party suffers a financial loss due to your taxi
• Comprehensive taxi insurance plans provide an all-round coverage for third party legal liability as well as for the damages suffered by your car
• A comprehensive taxi car insurance policy also provides different types of add-ons for enhancing the scope of coverage 
• The taxi driver also gets coverage against accidental death and disablement under the personal accident cover available with the plan
• You can buy or renew taxi insurance online in simple steps
• Cashless claims are available at networked garages

Reasons to buy taxi insurance

Under the Motor Vehicles Act, a minimum of third-party liability commercial vehicle liability insurance is required by every individual or owner who owns a taxi, hence taxi insurance is necessary. 

Apart from that, taxi insurance ensures the protection of both you and your customer in the event of loss or damage occurring due to an accident or collision.

If you invest in a comprehensive plan, you can also increase the protection by increasing add-ons like CNG kit cover, zero depreciation cover, and more. It is now easy to invest in taxi insurance from the comfort of your house/ workplace with the availability of online motor insurance plans. 

What is Insured Declared Value?

IDV stands for Insured Declared Value, and it is the maximum sum assured set by the insurer in the event of a vehicle`s theft or total loss. In a nutshell, IDV refers to your vehicle`s current market worth. It’s normally calculated using the manufacturer’s suggested retail price for the model and version of the vehicle at the start of the policy. It is calculated after depreciation has been adjusted for each year as suggested by Indian Motor Tariff. 

The car insurance claim amount payable is computed based on IDV if your four-wheeler is stolen or damaged to the point of being beyond repair. As a result, your vehicle must be insured against the appropriate IDV.

Types of taxi insurance in India

As mentioned earlier, there are two types of taxi car insurance plans available in India. They are detailed below –

1. Third-party liability policy

   This policy is the basic mandatory cover required as per the Motor Vehicles Act, 1988. The policy covers financial liabilities suffered in case of death, injury or property damage suffered by another individual.

2. Comprehensive taxi insurance

   A comprehensive policy has two coverage components. The first is the mandatory third party liability coverage. The second is the own damage cover that covers the damages suffered by the insured taxi.

Inclusions in taxi insurance

The instances covered under a taxi car insurance policy depend on the type of policy that you buy. Coverage under the mandatory third party cover includes the following –

1. Financial liability faced for causing a physical injury to a third party where the insured taxi is at fault
2. Financial liability faced for causing death where the insured taxi is at fault
3. Financial liability faced for causing third party property damage where the insured taxi is at fault

Under the own damage component of the coverage, available under comprehensive taxi insurance plans, the following instances are covered –

• Damage to the taxi due to natural calamities like earthquakes, hurricanes, cyclones, landslides, lightning, etc.
• Damages to the taxi due to man-made calamities like riots, fire, self-explosion, strikes, malicious acts, etc.
• Theft of the taxi
• Damages to the taxi when it is being transported to another place through air, road or water

Moreover, a personal accident cover is also available for the driver/owner of the taxi. This cover is mandatory and covers the driver against accidental death or disablement. However, if the driver has a personal accident cover on his/her life, you don’t have to buy the cover again with the taxi insurance policy.

Exclusions in taxi insurance

There are some instances of loss that a taxi insurance policy does not cover. These instances include the following –

1. Depreciation and normal wear and tear of the taxi
2. Mechanical or electrical failure or breakdown
3. Any type of consequential loss
4. The loss suffered when driving without a valid license
5. The loss suffered when driving under the influence of alcohol or drugs
6. The loss suffered when driving outside the territory of India
7. The loss suffered when using the taxi in violation of its limitations
8. The loss suffered when your taxi insurance policy has expired
9. The loss suffered when engaging in a criminal act
10. Deliberate losses

Add-on covers under taxi insurance

A comprehensive taxi car insurance policy allows a range of add-on coverage benefits that help in enhancing the scope of coverage. These add-ons are available at an additional premium and you can add as many add-ons that you want. Some of the most popular add-ons available with taxi car insurance are as follows –

1. Zero depreciation cover

   This is, by far, one of the most important add-ons covers that you can opt for. This cover eliminates the deduction for depreciation at the time of claims. Since depreciation is not covered under the insurance plan, your claims get reduced considerably due to the depreciation on the repaired or replaced parts. However, if you have the zero depreciation cover, the insurer pays the full claim amount, without deducting depreciation.

2. Personal accident cover for named individual

   You can opt for an optional personal accident cover for any driver other than yourself if the taxi is used by someone else too.

3. Emergency assistance

   In case your taxi breaks down in the middle of the road and cannot be towed to the nearest garage, you can opt for the emergency assistance add-on. Under this add-on, you get accommodation as well as a transportation facility.

4. Return to invoice cover

   Under this add-on, if your taxi is stolen or damaged beyond repairs, you get the invoice value of the taxi as claimed and not the policy’s Insured Declared Value (IDV).

5. Engine protection cover

   If the engine of your taxi gets damaged due to water seepage, such damages would not be covered under a basic taxi insurance policy. To get this coverage, you can opt for this add-on.

6. Key replacement cover

   This add-on provides coverage for lost key replacement.

7. Electrical accessories cover

   The electrical accessories of the taxi are insured against damages under this add-on.

Optional covers under taxi insurance

Though add-ons under a comprehensive policy are available as optional add-ons, there are other coverages features too that you can add to the policy if needed. These optional covers include the following –

1. Coverage for the bi-fuel kit if you add one to the taxi
2. Coverage for additional accessories added to the taxi that did not come factory built into the vehicle

How to compare taxi insurance online?

Many leading general insurance companies offer taxi insurance policies. To find the best coverage, you should compare taxi car insurance online and then buy. So, here’s how you can compare taxi insurance online –

1. The coverage benefits

   Though most taxi insurance plans offer standard coverage benefits, some plans add attractive coverage benefits to the inbuilt coverage for a wider scope of protection. For example, you can avail yourself of the free towing facility or emergency roadside assistance inbuilt under some plans. So, the first thing that you should check is the coverage benefits offered and buy a plan with the widest scope of cover.

2. The Insured Declared Value (IDV)
   The IDV of a taxi car insurance policy is the market value of the vehicle after deducting depreciation based on the vehicle’s age. The IDV determines the maximum claim payable under the taxi insurance policy. So, when comparing taxi insurance online, you should try and opt for an IDV as close to the market value for maximum claim settlement.
3. The premium charged

   The premium is another important criterion that should be checked when comparing taxi car insurance online. Try and opt for a plan that offers the lowest premium rate without compromising on the coverage benefits.

4. The add-ons offered

   Compare taxi insurance plans on the basis of the range of add-ons they offer. The wider the range of add-ons the more flexibility you can avail of for customizing the coverage as per your needs.

5. Discounts

   Comprehensive taxi insurance plans allow premium discounts for multi-car insurance, for choosing a voluntary deductible, for fitting safety devices in the vehicle, etc. Look for the discounts and choose a plan offering the maximum discounts.

6. Claim process

   Nowadays, companies have eased up their motor insurance claim process to make their policies customer-friendly. Look at the claim process of different insurers and choose one that offers the simplest settlement process.

7. Garage network

   Networked garages allow cashless claims and so an insurer with the widest network of garages should be preferred for easy cashless claims.

   Compare taxi insuranceonline keeping the aforementioned points and you would be able to find the best plan for your coverage needs.

How to buy taxi insurance?

You can buy a taxi insurance policy in two ways. They are as follows –

1. Offline 

   You can get in touch with an insurance agent or broker and buy a taxi insurance plan. You can also visit the branch of an insurance company that sells taxi insurance and apply for a policy by filling up a proposal form for availing of coverage. Pay the premium and submit the proposal form. The insurance company would assess the form, accept the premium and issue the taxi car insurance policy.

2. Online 

   An alternative and more convenient way to buy taxi insurance is the online mode. You can visit the website of the insurance company, provide the details of your taxi and buy the plan online. You can also choose to buy the taxi insurance policy through an aggregator’s website wherein you get the benefit of comparison. You can check out the different taxi insurance plans available in the market, compare them and then buy the most suitable policy.

   Turtlemint also offers taxi insurance online from the leading general insurers of India. You can compare leading plans and then choose the best policy for your vehicle. Just visit https://www.turtlemint.com/car-insurance/, enter your car details and find the leading plans. Compare the plans, pick one and make an online payment of the premium. The taxi insurance policy would be issued instantly.

How to renew taxi insurance?

Just like buying, renewing the taxi insurance policy can also be done in the following two ways –

1. Offline renewals

   Get in touch with your agent or broker or visit the insurance company’s branch and renew the policy offline.

2. Online renewals

   Visit the website of the insurance company from where you bought the policy. Choose the renewal option, enter the policy number, pay the renewal premium and renew taxi car insuranceonline. If you have bought the plan from Turtlemint, you can log into your online Turtlemint account and renew the policy from there itself. You can also port to another taxi insurance policy at the time of renewals. You can check the different taxi insurance plans available on Turtlemint’s website and renew with a different plan if it offers better coverage at low premiums.

How to make a claim under taxi insurance?

If you incur any claim in your taxi insurance plan, inform the insurance company immediately. The claim process is as follows –

1. For your own damage claims, the insurance company would guide you to the nearest networked garage. You can also check the garage list online on the company’s website or mobile application.
2. Take your taxi to the garage where the insurer’s surveyor would come and assess the extent of damages. The surveyor would also prepare a claim estimate and submit the same to the insurance company.
3. The company would approve of the claim based on the surveyor’s estimate
4. Once the claim is approved, the garage would repair your taxi and the bills would be settled by the insurance company.
5. Pay the deductibles and non-admissible expenses to take delivery of your vehicle. You should also file a claim form and submit the relevant documents for claim settlement.
6. In the case of third party claims, you would have to file a police FIR. The claim would be handled and settled by the motor accidents tribunal. Once the tribunal gives its ruling, the insurance company would directly pay the claim to the third party.
7. If your taxi is stolen, you would again have to file a police FIR. If the police are unable to trace your vehicle, they would issue a certificate certifying the same. Submit this certificate with the insurance company to get a settlement of your claim.
8. In the case of your own damage claims, if you get your vehicle repaired at a networked garage, you would have to bear the repair charges yourself. Once the repairs are done, file a claim with the insurance company and the company would reimburse you for the costs incurred.

For claim settlement, you would have to submit the following documents –

• The policy bond
• Copy of the RC book of the taxi
• Copy of the driving license of the driver riding the taxi at the time of claim
• Identity proof of the policyholder
• Police FIR for theft and third party claims
• Medico-legal certificate for personal accident claims
• All repair bills in original in the case of reimbursement claims
• Any other document as required by the insurance company 

If you have bought the taxi insurance policy from Turtlemint, you can call 1800 266 0101 or send a mail to support@turtlemint.com. Turtlemint’s claim department would help you get your claim settled at the earliest.

To understand what taxi insurance is all about and then buy a suitable policy for your vehicle.

Frequently Asked Questions

1. How is the third party premium calculated for the taxi insurance policy?

   The third-party premium of a taxi insurance policy is calculated by the Insurance Regulatory and Development Authority of India. It is fixed and reviewed every financial year. For taxis, the premium depends either on the engine capacity of the vehicle or the number of passengers the taxi is licensed to carry.

2. What is the applicable depreciation on the parts of the taxi?

   The depreciation depends on the different parts. It is as follows –

   Parts of the taxi	Applicable depreciation rate
   Nylon, rubber or plastic parts of the car	50% depreciation
   Fibreglass parts of the car	30% depreciation
   Glass parts of the car	Nil depreciation

3. Do I get any discount if I do not make claims under my taxi insurance policy?

   Yes, if you do not make claims on your taxi insurance policy you can claim a no claim discount. This discount starts from 20% for the first claim-free years and goes up to 50% if you have five successive claim-free years. 

4. What details of the taxi would be needed when buying taxi insurance online?

   When buying taxi car insurance online you would have to provide the following details to the insurance company for calculating the optimal IDV as well as the premium amount –

   • The make, model and variant of the taxi
   • The year of manufacture
   • The year of registration
   • Registration location
   • Additional accessories added to the taxi if any
   • The engine and chassis number

   After these details are correctly entered the insurance company would calculate the IDV and the corresponding premium for the comprehensive taxi insurance policy.

5. What are deductibles in the taxi insurance plan?

   Deductibles are your out-of-pocket expenses. In the case of a claim, the insurance company pays the claim only if it exceeds the deductible limit. Claims up to the deductible would have to be borne by you. There are two types of deductibles in taxi insurance plans. One is the compulsory deductible which is mandatorily applicable at each instance of a claim. The other is the voluntary deductible which you can choose yourself for availing of a premium discount. If you choose a voluntary deductible, you would have to pay the compulsory deductible as well as the voluntary deductible amounts from your pockets and the insurance company would pay the rest of the admissible claim.

A car has become a need in today’s age as it gives you the convenience of travelling from one place to another. You can buy a new car or a used one depending on your needs. However, paying for a car is no mean feat. You need considerable funds at your disposal to buy a car, either new or second-hand. If you have saved up enough, you can pay the outright amount and own the car. If not, a car loan can come in handy.

Various banks and NBFCs offer car loans for used and new cars. These loans finance the car and allow you to become its owner. Car loans are convenient as you can repay them, affordably, over a chosen tenure. They allow you to afford a car and are, therefore, quite popular among car buyers.

When you avail of a car loan to buy a car, the concept of ‘hypothecation’ comes into play. Let’s understand what hypothecation means and how it impacts your ownership.

What is the hypothecation of vehicle?

If you finance any vehicle through a loan, you need to hypothecate the vehicle to the lender. Hypothecation of vehicle means that the vehicle would be owned by the lender until the loan is paid off. If you default on repayment, the lender can sell off the vehicle to realize the outstanding loan amount.

Procedure for car loan hypothecation

When you buy a car, you would have to register your car with the Regional Transport Office (RTO). The RTO would issue a Registration Certificate (RC) mentioning your name as the owner of the car. However, if you have availed of a car loan to finance the car, the details of hypothecation would also be mentioned in the RC book.

The RC book would contain the details of the lender from whom the loan has been availed. It would also mention that the car would be hypothecated to the lender and the date of such hypothecation. When you buy a car insurance policy, the policy would also acknowledge the carhypothecation and mention the same on the policy document.

How to add hypothecation to the car insurance plan?

Usually, the details of car hypothecation are included by the insurance company automatically when you insure your car. At the time of buying a car insurance plan, the insurance company requires you to submit the RC book of the car. Since the hypothecation details are mentioned in the RC book, the insurance company records the details in the car insurance policy too.

At the time of renewals, you are asked whether the loan is running or has been paid off. The insurance company might also check your RC book to check the details of the car hypothecation. If your loan is running, the renewed policy would also contain the hypothecation details and if the loan has been paid off, you can apply for removal of the hypothecation details from your insurance policy.

Documents for car hypothecation

For adding the details of hypothecation to your car when registering it at the RTO, you would have to furnish the following documents –

• The Registration Certificate of the car, in original
• Application for hypothecation in Form 34
• PUC certificate
• Valid third party insurance covers the car and is details
• Receipt of the fee that you paid to get the hypothecation endorsed by the RTO
• Your address proof
• Self-attested copy of your PAN Card

How to remove car hypothecation?

Once you have paid off the car loan, it is recommended that you get the car hypothecation removed. Removal of hypothecation is a two-part process. First, you would have to get the hypothecation removed from the RC book through your RTO. Second, you would have to get the hypothecation removed from your car insurance policy. Let’s understand removal in both parts in details –

Removing hypothecation from the RC book

• After you have cleared off the car loan, get a No Objection Certificate (NOC) from the lender. The certificate shows that the loan is paid off and that the lender has no issues with the cancellation of car hypothecation.
• You would, then, have to visit the RTO and make an application for the removal of hypothecation. To do so, you would have to apply in Form 35 which is for hypothecation removal.
• Fill up Form 35 and submit it to the RTO along with the following documents –
• NOC issued by the lender
• Loan closure letter or the loan statement from the lender showing the loan has been paid in full
• Copy of a valid third party liability insurance policy on the car
• A valid PUC certificate
• Once you submit the documents, you would also have to pay a fee for the cancellation of the hypothecation. This fee depends on the state in which your vehicle is registered. You can check the fee on the transport department’s website.
• Pay the fee and submit the documents. The RTO would verify the documents and if everything is found to be in order, your car hypothecation would be cancelled.
• Once cancelled, the RTO would issue a fresh Registration Certificate (RC) where the details of hypothecation would not be mentioned. When receiving a new RC, you can also apply for a Smart Card RC. This would require you to pay an additional fee and the RTO would issue the new RC in the form of a smart card.

Removing hypothecation from the insurance policy

Once you have received the new RC from the RTO, you can apply for the removal of hypothecation details from your car insurance policy. For this, you should request the insurance company for removing the hypothecation from your car insurance policy. Submit the NOC, a copy of your existing policy and a copy of your new RC book. The insurance company would verify the details and remove the details of hypothecation from your car insurance policy.

How to check hypothecation removal status?

You can check the status of vehicle online to find out whether the hypothecation has been removed or not. After you submit the hypothecation removal request to the RTO, it takes some time before the RTO issues a new RC book. During this time, if you want to check the hypothecation status of vehicle online, you can do so through the Parivahan website of the Government. The process is as follows –

• Visit the Parivahan website at https://vahan.parivahan.gov.in/vahanservice/vahan/ui/appl_status/form_Know_Appl_Status.xhtml
• Enter in the application number that you must have received when you applied for cancellation of car hypothecation
• Enter the captcha verification code and hit ‘Submit’.
• The status of your application would be shown instantly

Importance of hypothecation and its removal

Hypothecation gives the lender collateral against repayment defaults. The lender remains the rightful owner of the car during the loan repayment. This gives the lender the right to sell off the vehicle to realize the outstanding loan amount if you fail to repay the loan on time. Thus, if you don’t pay off the loan in full, the lender’s loss is averted.

Once you have repaid the loan, however, removal of hypothecation is equally important. By removing the hypothecation from your car, you become the legal owner and have the right to sell the car when you want. 

So, know what car hypothecation is all about, how to add it and how to remove it when you buy your dream car.

Frequently Asked Questions

1. I want to sell my car second hand. Can I do so if it is still hypothecated to the bank?

   As long as the loan is not repaid and you don’t avail of the NOC, selling your car second hand can create a problem. So, it is better to pay off the loan and then put up your car for sale

2. I want to buy a second-hand car. How to check hypothecation status of the car?

   You can check the RC book of the car that you intend to buy. If the car is hypothecated, the RC book would state the same. Alternatively, you can visit the Parivahan website of the Government, enter the car’s registration number and check its hypothecation status online.

3. My car is hypothecated and it has been stolen. Who would get the claim?

   Since the car is hypothecated, it is the property of the lender. Moreover, in case of theft, the lender suffers a loss since the lender paid for the car. Thus, the insurance claim would be paid to the lender if your car is stolen.

4. Can I opt for the removal of hypothecation online?

   Yes, you can request the removal of hypothecation online on the Parivahan website of the Government. However, for submitting Form 35 and the relevant documents for the removal of hypothecation, you would have to visit the local RTO. 

5. I forgot to get the hypothecation removed on renewal. Can I do it now?

   Yes, you can remove the hypothecation even after renewal. Just submit a written request to the insurance company as well as the documents required for removal, i.e. the NOC from the lender and a new and updated RC book. The insurance company would verify the details and remove the hypothecation.

Buying a used car has its benefits. You can get a car within your budget and even test your driving skills with a used car. Moreover, if you are looking to own a premium or a luxury car and not want to invest a considerable amount of money in the same, you can own a used car.

When you buy a used car, you also have to get the car covered under a valid insurance policy. The Motor Vehicles Act, 1988 mandates a liability only used car insurance policy on the car before you take it out for a ride. So, let’s understand the policy in details –

What is a used car insurance plan?

A used car insurance policy is coverage that is allowed on used cars. The policy comes in two variants of third party liability only cover and comprehensive package cover. You can opt for any of these second handcar insurance plans when buying a used car.

Why should you opt for second-hand car insurance?

You need a used car insurance policy because of the following reasons –

1. Legally mandatory 

   Third-party coverage is legally mandatory. So, you need at least a third party cover on the car before you drive it. If you are caught without a valid cover, you would suffer considerable fines and even imprisonment in severe cases.

2. Comprehensive coverage 

   If you invest in a comprehensive old car insurance policy, you can get coverage for the damages suffered by your car. These damages might arise from natural or man-made calamities and can incur considerable repair costs. Under the comprehensive policy, however, the repair costs would be paid by the insurance company taking off a huge financial burden from your shoulders.

3. Financial security 

   The third-party coverage provides financial protection against legal liabilities against third parties if your car causes them any harm. These liabilities can be considerable, especially in the case of the death of a third party. In the absence of a used car insurance policy, the liabilities can cause a financial strain on you.

4. Security in case of thefts

   If your car is stolen, you would get a lump sum claim under the used car insurance policy. This would give you the financial means to replace the stolen car easily.

5. Easy claim settlements

   You can enjoy cashless repairs at networked garages under comprehensive second hand car insurance plans. This allows you to get your car repaired without any financial hassles.

So, for fulfilling the legal mandate and to enjoy financial security, a used car insurance policy becomes a must.

Top used car insurance plans 2022

If you are planning to cover your pre-owned car, check the table given below to get a fair idea of the top car insurance plans for used cars 2022. 

*The Premium Prices mentioned above are of a Volkswagon Ameo Petrol (2017).

Transfer of car ownership and insurance

When buying a used car, there are two steps that you need to follow. The first is to transfer the ownership of the car from the previous owner to your name. The second is to transfer the insurance policy from the last owner’s name to your name. Here’s how you can go about both these steps –

1. Transferring car ownership

   The first thing to do is to transfer the ownership of the car before you can apply for a transfer of insurance. The ownership of the car can be transferred through the following steps –

   • You would have to inform the RTO of the change in ownership so that the RC book of the car is duly updated with the new buyer’s details.
   • To inform the RTO and file for a change of ownership, you would have to fill up and submit three RTO forms. These forms are as follows –
   1. Form 28 is the form for the No Objection Certificate
   2. Form 29 is the form for transfer of ownership
   3. Form 30 which is an intimation for transfer of the car

   Both the seller and the buyer of the used car would have to sign these RTO forms before they are submitted to the RTO.

   • You would also have to pay a fee for the transfer of ownership in the RC book. This fee would depend on the RTO where the car is registered. 
   • Other documents would also be needed to complete the transfer of ownership. These documents should be attached with the RTO forms and submitted to the RTO. The documents are as follows;
   1. Registration certificate (RC Book)
   2. PUC certificate
   3. Tax certificate for the road tax paid on the car
   4. A declaration by the car owner stating that he/she intends to sell the car
   5. Copy of the insurance policy
   6. An affidavit stating the change in ownership of the car
   7. Address proof of the car buyer

   Once the documents are submitted and the application is made, the RTO would change the ownership and issue an updated RC Book for the car.

2. Transfer of insurance

   Once the ownership is transferred, you can transfer the insurance policy from the seller’s name to the buyer’s name. Here’s the process –

   • The seller needs to inform the insurance company of the change in ownership of the car. This information should be given in writing.
   • If the seller has any No Claim Bonus (NCB) to his name, the insurance company would issue an NCB certificate to the seller before transferring the insurance policy
   • You would have to submit some documents to transfer the policy. These documents include the following –
   1. The updated RC book. If the RC book is in the process of being updated, you can also submit Form 29
   2. NOC from the seller
   3. Existing policy bond
   4. New proposal form for insurance
   5. Vehicle inspection report
   6. The difference premium payable

   Once the application is submitted along with the documents, the insurance policy would be transferred in the name of the new buyer.

Buying new car insurance for a used car

Rather than getting the ownership transferred in the existing policy, you can also opt for a new car insurance policy. To do so, you can buy the policy online or offline. For buying offline, you would have to get in touch with an insurance agent or a broker. Alternatively, you can visit the branch of an insurance company and apply for a new policy.

The online mode, on the other hand, is much easier. You can simply visit the website of an insurance company or an insurance aggregator and buy a new used car insurance policy. Provide the details of the car and the premium would be shown. Compare the premium and the coverage benefits and buy the best second hand car insurance policy.

Steps to buying new insurance for your second-hand car:

1. On Turtlemint’s website go to “Get Car Insurance Quotes”, enter the car registration number
2. Enter the required information such as city and RTO, make and model of the car, year of registration, etc. 
3. Select Petrol, CNG, Diesel, and CNG External Kit as vehicle fuel type. 
4. Enter personal information such as name, email, and phone number and check the premium amounts for the various plans. 
5. Choose a plan that meets your coverage requirements and financial limits. 
6. Choose the additional coverage through Add-Ons if you want and complete the payment of the final premium amount. 
7. Used car insurance will be provided once payment is complete once the payment is processed.

Why choose Turtlemint for used car insurance?

Turtlemint is an online platform that allows you to buy an old car insurance policy online without hassles. The reasons why Turtlemint can be the best mode of buying a car insurance plan are as follows –

1. You can buy the policy instantly online by following a simple process
2. Turtlemint is tied up with the leading car insurance providers of India. You can, thus, get the best coverage benefits through Turtlemint’s portal.
3. Turtelmint allows you to compare and choose the most suitable used car insurance policy which offers the most comprehensive coverage benefits at the lowest used car insurance prices
4. At the time of claim, Turtlemint gives you complete assistance to get your claims settled quickly and easily.

So, visit https://www.turtlemint.com/car-insurance/ and buy the best used car insurance policy.

Things to check before buying a second-hand car

If you are thinking of buying a second-hand car for your needs, here are some things that you should check –

• Check the usage of the car. Buy a car that has useful life left. Try and avoid very old cars as their maintenance costs would be high
• Opt for a model that fits your budget
• Do a thorough inspection of the car to find if it is damaged anywhere and to assess its present condition
• Try and buy a second-hand car from reputed dealers, online or offline
• Make sure the ownership is successfully transferred after buying the car

Do your research and select the best car. Don’t forget to add the used car insurance policy when you buy a second-hand car.

Frequently Asked Questions

1. Within what duration should I get the insurance policy transferred after I buy a used car?

   The transfer of the insurance policy should be done within 14 days from the date of sale of the car. During this period, the third party cover would continue to apply. However, if the tenure of 14 days expires, the third-party coverage would cease.

2. Where can I get the RTO forms for change in ownership?

   RTO forms can be downloaded online from the Parivahan website. The link is https://parivahan.gov.in/parivahan//en/content/download-forms. You can also get the forms at the RTO itself. 

3. Can I opt for only third party cover on the second-hand car?

   Yes, you can opt for only third party cover which is mandatory. However, if you do so, any damages suffered by your car would not be covered. Moreover, if your car is stolen, you would incur a considerable loss. So, it is always better to opt for a comprehensive policy.

4. Would the used car insurance policy cover all types of damages?

   A comprehensive used car insurance policy covers most types of damages. However, there is a list of policy exclusions that you should check. This list states the damages which are not covered by the policy.

5. What add-ons are offered under comprehensive old car insurance plans?

   A range of add-ons is available under comprehensive old car insurance plans. Some common ones include zero depreciation cover (provided the car is not more than 5 years old), roadside assistance cover, engine protection cover, NCB protection cover, etc.

A car insurance policy is mandated by the Motor Vehicles Act, 1988. The Act states that every car in India should carry valid third party coverage. This coverage protects third party interests. It pays the liability that the car owner suffers if the car hurts or kills any third party or damages third party property. However, if the car itself suffers any damage, there is no coverage granted by the third party cover. 

This is where own damage car insurance cover comes into the picture. Let’s understand what this cover is all about.

Own damage car insurance meaning

The own damage insurance for car is one that covers the damages suffered by the car itself. If the car is damaged due to natural or man-made causes or if it is stolen, the car own damage insurance cover would cover the financial loss suffered by the car owner and pay a claim.

Does basic insurance cover your own damage?

A basic insurance policy means a third party insurance policy that is mandated by the Motor Vehicles Act, 1988. As mentioned earlier, this basic insurance policy does not cover the damages suffered by the car. That is why, while third party cover is essential, you should also opt for your own damage car insurance for a comprehensive scope of coverage on the car.

Benefits of own damage car insurance

A policy of own damage insurance for car is recommended because of the various benefits that the policy provides. These benefits are as follows –

1. Coverage against minor or major damages

   If the car suffers any minor or major damages due to an accident, natural calamity or man-made reasons, the own damage car insurance cover would compensate for the financial loss. The policy would pay the repair costs incurred in repairing the car if there is any minor or major damage. This would spare you considerable financial outgo as the repair costs can prove expensive, especially if you have a premium luxury car or if your car suffers major damages.

2. Coverage against theft

   No matter how secure you keep your car, it might get stolen. When there is a theft, you stand to lose a considerable amount of money if the car is not traced back. The car own damage insurance policy covers theft cases too. If your car is stolen and not recovered, the policy pays a lump sum amount in the claim. This claim reduces the financial loss suffered and also allows you to buy a new car to replace the lost one.

3. Affordable annual coverage

   The own damage car insurance coverage is allowed for one year after which it can be renewed for continued coverage. The annual policy has an affordable premium that you can easily play and enjoy a comprehensive scope of coverage.

4. Easily available

   You can buy your own damage car insurance policy online in a few simple steps. Moreover, if you choose to buy the policy through Turtlemint, you can also compare the different plans available in the market and choose a policy that offers the maximum coverage at the lowest cost.

5. Choice of add-ons

   The own damage car insurance policy comes with a range of optional coverage benefits called add-ons. These add-ons help in enhancing the scope of coverage of the policy at minimal premiums. You can opt for suitable add-ons and increase the coverage and the claim amount. Moreover, the add-ons take care of all possible contingencies that you might face when using your car.

6. No claim bonus

   If you do not make any claim in your policy, you are entitled to receive a no claim bonus upon renewal. This bonus gives you a discount on the renewal premium. It starts at 20% for the first claim-free year and then continues to increase after every successive claim-free year. You can claim up to a 50% discount if you don’t make any claims for five successive years. 

7. Attractive premium discounts

   When you choose coverage for own damage, you can also get attractive premium discounts to reduce the premium. Discounts are allowed for installing safety devices, being a member of an automobile association, choosing a voluntary deductible, etc. besides the no claim bonus allowed by the plan.

Inclusions under own damage car insurance

The coverage offered by car own damage insurance is quite comprehensive. The policy covers the following cases of contingencies –

1. Damages to the car due to natural disasters like earthquakes, floods, storms, hurricanes, landslides, etc.
2. Damages to the car due to man-made calamities like riots, fire, strike, malicious activities, etc.
3. Theft of the car
4. Damages to the car when it is being transported by rail, road, sea or air

Exclusions under own damage car insurance

Despite offering a good scope of coverage, the following instances are not covered in car own damage insurance –

• Damages suffered when driving the car outside the boundaries of India
• Damages suffered when driving the car under the influence of alcohol and/or drugs
• Damages suffered when driving the car without a valid driving license
• Deliberate or self-inflicted damages
• Electrical or mechanical breakdown
• Depreciation and wear and tear suffered due to use
• Damages suffered when violating the limitations of using the car
• Damages suffered when using the car for carrying out illegal acts

How to calculate your own damage car insurance premium?

The premium of the own damage car insurance cover depends on various factors. When you consider these factors, you can calculate the premium using online premium calculation tools. The factors affecting the own damage car insurance premium are as follows –

1. The Insured Declared Value (IDV)

   The IDV represents the coverage amount of the own damage car insurance cover. It is calculated by deducting the depreciation based on the age of the car from the market value of the car. The higher the IDV the higher would be the premium and vice-versa.

2. Age of the car

   Since age affects the IDV, it is inversely related to the premium. If the car is old, the IDV would be low and so would be the premium. Thus, the premium for new cars is higher than the premium for older ones.

3. Registration details

   The registration year and location determine the premium amount. The registration date shows the age of the car. A car registered recently would, therefore, be new and have a higher premium than an older registered car.

   Similarly, the registration location is also considered for premium calculation. Cars registered in metropolitan cities have higher premiums than cars registered elsewhere. It is because the probability of claims and the expected repair costs are higher in metros.

4. Make, model and variant (MMV) of the car

   The MMV of the car determines its market value. Depending on the market value, the premium is determined. Cars having high market values have high premiums compared to cars with lower values.

5. Add-ons selected

   If you opt for the available add-ons, the premiums would increase because each add-on comes with an additional premium. 

6. No claim discount

   If you are renewing your own damage car insurance policy and there have been no claims in the previous years, you can claim a no claim discount. The higher the discount you have accumulated the lower would be the premium and vice-versa.

7. Other discounts

   As mentioned earlier, you can claim a host of discounts under your own damage car insurance policy. So, depending on the discounts that you can claim, the premium would be calculated. Higher the discounts lower would be the premium and vice-versa.

8. Lapse of the policy

   If you are renewing a lapsed car insurance policy, the renewal premium might be higher compared to renewing a policy within the due date.

   When you enter these details in the premium calculator, the premium for the own damage car insurance cover would be calculated and displayed.

Standalone own damage car insurance policy

To opt for own damage cover, you have two options. These are as follows –

1. Comprehensive policy

   A comprehensive car insurance policy includes coverage for the mandatory third-party liability as well as own damage cover. Thus, with a single policy, you can avail of both the coverage benefits.

2. Standalone own damage car insurance

   As the name suggests, this policy covers only the damages suffered by the car. Coverage for third party liability is not allowed under this plan. The standalone own damage car insurance policy is available only if you have valid third party insurance coverage on the car. Usually, this policy is designed for new cars where five-year third party coverage is mandatory. In such cases, you can opt for a long term third party cover and an annual standalone own damage cover.

Own damage car insurance renewal

The own damage insurance for car is allowed for one year and you have to renew the policy annually for non-stop coverage. Own damage car insurance renewal can be done online or offline. Let’s understand how –

1. Offline own damage car insurance renewal

   To renew your car own damage insurance offline you can either visit the branch of the insurance company or contact an insurance agent of the company. Provide your policy number to know the existing policy details. Pay the renewal premium online and do any changes in the policy if you want. Once the premium is received, the policy would be renewed.

2. Online own damage car insurance renewal

   The online mode of own damage car insurance renewal is quick, easy and instantaneous. You can renew online from the website of the insurance company. Just visit the company’s official website, choose the renewal option and provide your policy details. You can check your existing coverage and also make changes if needed. The renewal premium would be displayed which you can pay online using any digital payment modes. Once the premium is successfully paid, the policy would be renewed instantly.

   Alternatively, if you have bought your own damage car insurance policy online through Turtlemint, you can log into your account and renew through Turtlemint’s platform. Turtlemint also allows you to compare your existing policy with other available policies and then choose the best plan. Just pay the renewal premium online and your policy would be instantly renewed.

How to claim car insurance for own damage in India?

In case you suffer any contingency that is covered by the policy, here’s how to claim car insurance for own damage in India –

1. Inform the insurance company immediately of the claim. The company would register your claim and issue you a Claim Reference Number. This reference number would come in handy for tracking your claims and for claim filing.
2. When you inform the insurance company, it would direct you to take your car to the nearest networked garage. You can also get the list of networked garages in your area when intimating the claim.
3. At the garage, the surveyor would visit and assess the damages suffered
4. The surveyor would, then, prepare a claim estimate and submit it to the insurance company.
5. Based on the surveyor’s estimate, the company would approve cashless repairs
6. Once the approval is received, the garage would start the repair work. The bills would be settled directly by the insurance company
7. For any inadmissible costs and deductibles you should pay the remaining cost of the repairs
8. The claim form and other relevant documents should be submitted to the insurance company for claim settlement.
9. Then you can take the delivery of your car
10. If, however, you take your car to a non-networked garage, you would have to bear the repair costs initially. Then, once the repair bills and the claim documents are submitted, the insurance company would reimburse you for the costs incurred.
11. In case of theft, inform the police and file an FIR
12. The police would try and locate your car. If they fail to do so, they would issue a non-traceable certificate.
13. Submit this certificate along with the other claim related documents for claim settlement.
14. The insurance company would pay the IDV and the claim would be settled

You can also take Turtlemint’s help in case of your car insurance claims. Turtlemint has a dedicated claim handling team that would take the claim steps on your behalf and help you in getting a quick claim settlement. Just inform Turtlemint of your claim by calling 1800 266 0101 or by sending an email to support@turtlemint.com and then Turtlemint’s team would do the work to get your claim settled.

So, understand the concept of own damage car insurance and then buy suitable coverage for your car for all-around protection.

Frequently Asked Questions

1. What would happen if I failed to do my own damage car insurance renewal on time?

   If you do not renew your own damage car insurance policy on time, the policy would lapse and the coverage would stop. Thereafter, if there is any damage, you would have to bear the financial losses. You can renew a lapsed policy too but such a renewal would require inspection and the policy would be renewed only after a successful inspection is completed. The premium might also be hiked on such own damage car insurance renewals. If, however, you do not renew your policy within 90 days from the date of lapse, the accumulated no claim bonus would be lost.

2. What is the rate of depreciation for IDV calculation?

   The rate of depreciation for calculating the IDV depends on the age of the car. It is as follows –

   Age of the car	Rate of depreciation applicable
   Up to 6 months	5%
   More than 6 months but less than a year	15%
   More than a year but less than 2 years	20%
   More than 2 years but less than 3 years	30%
   More than 3 years but less than 4 years	40%
   More than 4 years but less than 5 years	50%

   For vehicles aged 5 years and more, the IDV is decided mutually between the insurance company and the policyholder. 

3. Can my own damage car insurance claim get rejected?

   Yes, your claim insurance claim might get rejected for several reasons. For example, if the claim is made for an excluded cost, it would be rejected. Similarly, if there is a chance of fraud or if the claim process is not followed correctly, the claim would get rejected. Claims are also rejected if your policy has lapsed.

4. Is own damage car insurance cover more expensive than third party cover?

   Yes, it is. The reason is that the own damage cover allows a wider scope of coverage than a third party cover. Moreover, the premium for own damage car insurance cover is determined by the insurance company and varies across insured while third party premiums are fixed by the Insurance Regulatory and Development Authority and are the same across insurers.

5. What are deductibles?

   Deductibles are a portion of claims that are not payable by the insurance company but by you. In own damage car insurance policies, there is a compulsory deductible which is to be paid in case of every claim. Moreover, there is a voluntary deductible too which is optional. If you choose this deductible and opt to pay a part of the claim out of pocket, you can earn a premium discount.

A car insurance policy is a mandatory requirement under the Motor Vehicles Act, 1988. However, the Act mandates only a third party cover which protects third party interests in any contingency. If you want to secure coverage for the damages suffered by your own vehicle, you should opt for a comprehensive policy. Furthermore, to expand the scope of coverage of a comprehensive policy, you can opt for a zero depreciation cover as well. 

Let’s understand the concepts of comprehensive vs zero dep coverage options and have a look at their comparative analysis.

What is a comprehensive car insurance policy?

A comprehensive car insurance policy is one that covers third party liabilities as well as the damages suffered by the car itself. The policy is issued for one year after which you can renew it for as long as you own a car.

What is a zero depreciation car insurance policy?

A comprehensive car insurance policy does not cover the depreciation suffered by the parts of the car due to normal wear and tear. As such, when a claim is made, the relevant depreciation is deducted from the claim amount leaving you to pay the depreciation cost from your own pockets. A zero depreciation policy protects you against such out-of-pocket expenses. It is a comprehensive car insurance policy that also includes the zero depreciation add-on. The policy covers third party liabilities, the damages suffered by the car as well as the depreciation suffered by the car’s parts. If there is a claim, the insurance company does not deduct any depreciation from the parts repaired or replaced. It pays the full repair costs incurred. 

In simpler terms, a zero depreciation policy is a comprehensive car insurance policy with the added coverage of a zero depreciation add-on.

Applicable depreciation rates on zero dep vs comprehensive plans

Here are the applicable depreciation rates which would be applied on your car’s parts in a comprehensive vs zero dep policy –

Suppose a claim occurs wherein the rubber parts are repaired at a cost of INR 20,000 and the fibreglass parts are repaired at a cost of INR 10,000. The claim payable under a zero dep vs comprehensive plan would be as follows –

While in the comprehensive policy you would have to bear a depreciation cost of INR 13,000 (INR 30,000 – INR 17,000), in a zero depreciation policy you would not have to bear any depreciation cost. The total claim of INR 30,000 would be paid by the insurance company.

Comparative analysis of comprehensive insurance vs zero depreciation insurance

Here is a comparative look into comprehensive insurance vs zero depreciation insurance for you to understand both these plans easily –

1. Similarities
   • Both plans cover third party liabilities as well as damages suffered by the car
   • Both the plans are voluntary in nature
   • Both the plans allow no claim bonus discounts as well as other premium discounts for safety gadgets, membership of Automobile Association, etc.
   • Cashless claims are allowed under both the plans
   • The coverage duration of both the policies is one year
   • You can choose other add-on coverage benefits with both the plans
2. Differences
   

   Points of difference	Comprehensive insurance	Zero depreciation insurance
   Scope of cover	Coverage for third party liability and own damage only	Coverage for third party liability, own damage and depreciation on the car’s parts
   Premium	Lower compared to zero depreciation policy	Higher due to wider coverage
   Claim pay-out	Lower because depreciation is deducted from the claim amount	Higher because depreciation is not deducted from the claim amount
   Availability	Available for cars of all ages	Available for cars aged up to 5 years
   Number of claims	Unlimited claims can be made as long as the IDV of the policy is not used up	There might be a limitation on the number of claims for zero depreciation that you can make.

Should you buy a zero depreciation cover?

The repairs of the car, especially in case of severe damages, incur considerable amounts of money. Moreover, if your car is an expensive one, the costs can be financially damaging. A zero depreciation policy, therefore, is a better option for ensuring that your out-of-pocket expenses are reduced. It provides a wider scope of coverage and allows you to get a higher settlement at the time of claims. So, it is always better to opt for a zero depreciation cover for your car.

That being said, when buying a zero depreciation cover, you should always compare the premiums across several insurance companies. Every company has its own pricing policy and so, the premiums differ across different insurers. Add the zero depreciation add-on to the coverage and compare the premiums across insurers. Choose a policy that offers the lowest premium without compromising on the Insured Declared Value or the coverage of the policy.

To compare, you can choose Turtlemint that offers you the choice of the best zero depreciation plans available in the market. Visit https://www.turtlemint.com/car-insurance/ and enter your car details to check out the quotes of leading insurers. Compare and choose the best zero depreciation policy and insure your car under the widest coverage.

Frequently Asked Questions

1. How many claims can I make under a zero depreciation cover?

   The maximum limit to zero depreciation claims depends on the insurance company from where you buy the policy. Usually, many companies allow a maximum of two claims during the policy tenure. Some companies, however, also allow unlimited zero depreciation claims with their plans. So, find out the limit when buying the policy so that you know how many claims can be made on a zero depreciation basis.

2. Can I convert my comprehensive policy to a zero depreciation policy?

   Yes, you can add the zero depreciation add-on to your comprehensive car insurance policy and convert it into a zero depreciation policy. This addition can be done either at the time of buying a new policy or when renewing an existing one.

3. Is an additional third party policy required with zero depreciation cover?

   No, you don’t have to buy an additional third party cover with the zero depreciation policy. This is because the third party coverage comes inbuilt in the zero depreciation policy itself.

4. Can I opt-out of the zero depreciation cover?

   Yes, at the time of renewal of the car insurance policy, you can opt-out of zero depreciation cover by opting out of the zero depreciation add-on benefit. Moreover, once your car is more than 5 years old, the zero depreciation cover would automatically be removed when your policy is renewed in the sixth year.

5. Do all insurers offer zero depreciation insurance?

   Yes, all general insurance companies that offer a comprehensive car insurance policy offer zero depreciation add-on. You can add the add-on to the comprehensive policy to opt for the zero depreciation cover.

The Motor Vehicles Act, 1988 mandates every vehicle to carry third party coverage before it runs on the road. The third-party coverage provides coverage against third party liabilities that might incur if the vehicle damages third party property or causes injury or death to another individual. The third-party cover, however, does not cover the damages suffered by the vehicle itself.

If you want coverage for the damages on your own vehicle, you need to opt for your own damage insurance plan. This cover is meant for the damages suffered by the vehicle, i.e. if your vehicle suffers damages or theft due to natural or man-made causes. While own damage insurance is available under comprehensive vehicle insurance policies, you can also opt for the standalone OD policy. Let’s understand how.

Standalone OD policy meaning – what the plan is all about

A standalone own damage insurance plan covers only the damages suffered by the car. This policy does not include coverage for third party liabilities. This policy is issued for one year and can be bought only if you already have an independent third party liability policy. This means that the policy is not available unless a third party policy is already bought by the policyholder.

Benefits of own damage insurance

Here are the benefits of availing of an own damage cover –

1. All-round coverage

   Since the own damage policy covers accidental and natural contingencies that might damage your car, it provides all-around coverage. Damages to your car involve considerable expenses on repairs. These expenses can cause a major financial strain. However, if you have your own damage insurance, the repair costs are shouldered by the insurance company allowing you financial relief.

2. Coverage against theft

   Theft of the car causes a considerable financial loss. By covering such financial loss, own damage insurance gives you financial security and compensation to replace the lost car with a new one.

3. Add-on benefits

   Under your own damage insurance, you can find optional add-on coverage benefits that help in enhancing the scope of coverage. Benefits like zero depreciation cover, no claim bonus cover, roadside assistance, etc. expand your coverage considerably thereby enhancing the claim pay-out.

4. Attractive discounts

   There are attractive premium discounts under your own damage insurance. You can claim a discount of up to 50% by not making claims in your policy. Then, there are discounts for installing safety devices in the car, for opting for voluntary deductibles, for being a member of an Automobile Association, etc.

Who is eligible to buy their own damage insurance ?

An own damage cover can be taken by any individual who owns a vehicle. The cover can be bought through a comprehensive policy that also covers third-party liability. However, if you want only a standalone OD policy, you need to have third party coverage before opting for the plan. If you can furnish proof of a valid third party cover on your vehicle, you can opt for a standalone OD policy too.

Who should buy their own damage cover?

The own damage insurance cover is suitable for all vehicle owners because it provides a wider scope of coverage. The policy covers the damages suffered by the vehicle due to natural or man-made calamities. Moreover, if your vehicle is stolen, then also you get financial assistance from the insurance company for the financial loss suffered due to theft. Since the repair costs are considerable and a possible theft causes a considerable financial loss, the own damage cover is suitable for all.

If, however, you do not use your vehicle too much or if your vehicle is very old you can do away with your own damage cover. In that case, you can simply opt for a basic plan, i.e. a third party plan.

Inclusions in own damage insurance

The coverage extended under its own damage cover is quite extensive. The policy allows coverage against the following contingencies –

1. Natural calamities like earthquake, storm, cyclone, flood, hurricane, landslide, subsidence, tempest, etc.
2. Man-made calamities like fire, explosion, self-ignition, riots, strikes, malicious acts, etc.
3. Theft of the car
4. Damage to the car when it is being transported from one place to another via road, rail, air or water

Exclusions in own damage insurance

Despite the wide scope of coverage, the following contingencies are not covered under an own damage policy –

• Deliberate damages
• Damages suffered due to attempted suicide or self-inflicted injuries
• Damages suffered when driving without a valid driving license
• Damages suffered when driving under the influence of drugs, alcohol or other intoxicating substances
• Damages suffered outside the Indian territorial boundaries
• Consequential losses
• Normal wear and tear or depreciation of the vehicle
• Mechanical or electrical damages or breakdown of the car
• Damages suffered when engaging in hazardous activities or in criminal acts

How to calculate your own damage premium?

The premium for an own damage insurance policy depends on a lot of factors. It also varies across insurance companies. So, to calculate the own damage premium, here are the factors that you must know about –

1. Make, model and variant

   The make, model and variant of the car determines its market value. Depending on the market value, the coverage and the premium are determined. Premium cars have higher premiums compared to normal cars.

2. IDV:

   IDV (Insured Declared Value) means the market value of the car after deducting depreciation based on the age of the car. IDV also represents the maximum coverage available under the own damage insurance policy. If the IDV is high, the premium would be higher and vice-versa.

3. Registration details

   The registration date of the car reveals the age of the car based on which its value is depreciated. Thus, older cars have lower premiums and vice-versa. Similarly, the registration location also impacts the premium amount. Cars registered in metropolitan cities have higher premiums than cars registered in other places.

4. Claim history

   If you have not made claims in the previous years, you are eligible for a no-claim discount. This discount reduces the renewal premium. Thus, depending on the claim history, the no claim bonus rate is determined which affects the premium rate.

5. Renewal date

   If you opt for renewal within the due date, the premium would be low. However, if the policy has expired and then you renew it, the consequent premiums would be higher.

6. Add-ons selected

   If you select the available add-ons, the premium would increase as each add-on comes with an additional premium amount.

7. Discounts available 

   Besides the no claim bonus, if you are eligible for other discounts in the own damage cover, your premium would be reduced.

So, keep these points in mind to calculate the own damage premium when buying the policy.

Car insurance calculator 

While you are planning to purchase a car insurance policy, it is essential that you have an idea of the premium you will have to pay. Using a digital calculator, like the one offered by Turtlemint, you can easily check your insurance premium. By entering a few details, the premium for various plans could be calculated so you can compare the plans and make the decision accordingly. There are several factors that affect the calculation of your own damage insurance policy. These are:

• Geographic area
• Insured declared
• Value of your vehicle
• Displacement of the engine
• Type age and make of the vehicle

Tips to reduce premium payable against own damage insurance

There are simple tips and tricks that can help you cut on the insurance premium. The premium payable against own damage insurance can be reduced by following the steps mentioned below:

• Optional deductibles
  Optional deductibles are those amounts in own damage insurance, which you opt to pay at the time of claim settlement. Therefore, to reduce your own damage premium, you can opt to raise the optional deductible percentage.
• No small claims

  To maximize the profits a policyholder should focus on no-claim bonus. To get this, the policyholder should have a claim-free year. This can be attained by not making claims for small repairs or minor damages.

• Avoid insurance policy lapse
  Not renewing insurance policies on time might end up as higher premiums. Therefore, to avoid such instances renewal of policy is needed.
• Transfer of no claim bonus
  If you were having a comprehensive motor insurance policy, then you should transfer the accumulated discount on the existing insurance policy.

Factors affecting own-damage car insurance premium

You must be aware of the various factors that affect the own-damage car insurance premium. These are:

• Market value of car–
  The existing market price of the car is one of the deciding factors in calculating the premium in the own-damage car insurance policy.
• Displacement of your car–
  Displacement in other words is also known as the cubic capacity of a car. It is directly proportional to the car’s speed. Therefore, the higher the cc, the higher will be the risk, this results in the own damage premium amount to be on a higher side.
• Model of the car–
  The car’s model also plays an important role while calculating the premium of the own-damage car insurance plan. If the car is on a costlier side, then the premium will automatically be on a higher side.
• Age of the car–
  Older cars tend to lose their value. So, the car’s age of the policyholder matters while calculating the premium. In simple words, the damage premium will be less, if the car is old.
• No claim bonus–
  If the policyholder has no claims in a year, then the no claim bonus percentage will help them to reduce their own damage premium amount. NCB can get you a premium discount up to 50%.
• Opted add-ons
  The type of add-on chosen by the customer in their own damage policy directly affects the premium.

How to renew your own damage insurance policy?

Own damage insurance renewal can be done online or offline. Here’s how –

1. Offline renewal

   For renewing offline, you need to either contact an insurance agent or visit the branch of your insurance company. You would have to pay the renewal premium and the policy would be renewed after the renewal request is processed by the insurance company.

2. Online renewal

   For instant renewals, you can choose the online option. To renew online, visit the website of your insurance company, enter your policy number, pay the renewal premium and renew online. Alternatively, you can visit https://www.turtlemint.com/car-insurance/ and compare different plans to find the best policy. Then, you can buy the plan online and get your coverage renewed instantly.

Remember, if you renew the policy within the due date, your policy would be renewed easily. However, if the due date has passed and your policy has expired, you would have to arrange for an inspection of your car and after the inspection is successfully done, the insurance company would allow the renewal of the policy. 

What add-on cover can be bought with own-damage car insurance? 

Other than providing insurance for your car, there are several other add-ons that the own-damage car insurance policy offers. These add-on covers are designed in such a way that, after paying some extra amount apart from the standard premium, the coverage of the own damage insurance policy increases. Some add-on covers to include in your existing insurance plan are:

1. Roadside assistance cover

   This is one of the most beneficial add-on covers that got your back anywhere anytime on the road. In case your car stops working in the middle of a road, you can call your insurance company and they will immediately reach out to you for the required help. 

2. Zero depreciation cover

   When you file a claim, the depreciation value of your car and its parts are reduced from the claim bringing down the claim amount. However, if you have a zero depreciation cover, the cost of bearing depreciation will be incurred by the insurance company. Hence, if you have this add-on, when you file a claim, the depreciation cost will not be deducted. 

3. Daily allowance cover

   One of the setbacks of your car repair is you have to find another means of communication and pay those extra bucks every day. However, if you have daily allowance cover, this might not be your problem. Until you receive your car back from the garage, the insurance company will provide you with the daily cost of communication. You can book a cab of your choice as well. 

4. Key protect cover

   Keys are very prone to get lost. It may slip from your pocket or you may forget it somewhere. If you have a key protector cover, your insurance company will pay you the cost of replacing new keys. 

5. Consumables cover

   For a car, the lubricants are the consumables. There are different consumables like oil, brake oil, engine oil, AC gas, steering oil, coolant, etc. When you purchase a consumable cover for your car, the insurance company helps you pay the cost of the consumables. 

The story does not end with purchasing a car. Deciding and purchasing the right kind of insurance policy and the add-on cover is equally essential. You must explore all the available options for your four-wheeler and then purchase what all seems beneficial. When you plan to purchase an add-on, make sure you need it. Also, by following some basic rules, you can easily reduce the premium. Make sure you renew your premium before it expires in order to stay updated and receive bonuses and discounts on renewal.

How to claim car insurance for your own damage in India?

If you incur a claim in your own damage insurance policy, you can initiate the claim process. The steps are as follows –

1. Inform the insurance company immediately after you suffer a claim. This helps in registering the claim for the process to start.
2. Once registered, the insurance company would also direct you to the nearest preferred workshop wherein you can get cashless claims
3. Take your car to the workshop and the insurer’s surveyor would go to the workshop to check the damages
4. Then the surveyor would submit the survey report based on which the claim would be approved
5. After the approval is given, the garage would be instructed to start the repair work of the vehicle and the bills would be handled directly by the insurer
6. Once the repairs are completed, fill and submit the claim form with other relevant documents for settlement
7. After the claim is settled, you can take delivery of your car
8. In case of theft, report the same to the police and file an FIR. If the police is not able to trace the vehicle, they would then issue a certificate of non-traceability. You need to submit the certificate for an insurance claim. 
9. If you get your car repaired at a non-preferred garage, i.e. a garage not tied up with the insurance company, you would have to bear the repair costs yourself. After repairs, fill and submit the claim form along with the relevant documents and the claim would be reimbursed

If, however, you have bought your own damage insurance policy from Turtlemint, you can call Turtlemint for claim assistance. Call the toll-free number 1800 266 0101 or drop in a mail at support@turtlemint.com and Turtlemint would help you with the claim settlement process.

The own damage insurance cover is a valuable cover for your car which provides all-around financial protection. So, opt for the cover and get complete financial security against unforeseen financial contingencies.

Frequently Asked Questions

1. What documents are needed for your own damage insurance claim settlement?

   For settlement of your own damage claim, the following documents should be submitted along with the filled and signed claim form –

   • Copy of your identity proof
   • Copy of the driving license
   • Copy of the RC book of the car
   • Police FIR in case of theft
   • Policy bond or Insurance Certificate
   • Any other document required by the insurance company.
2. How to buy your own damage insurance policies?

   You can buy the policy online or offline. For buying offline you can get in touch with an insurance agent or visit the insurance company’s office. The online mode of buying is easier as you can buy the policy online instantly. Just visit the insurer’s website, provide your car’s details, pay the premium and buy the plan. You can also buy a suitable own damage insurance policy through Turtlemint’s platform which allows you to compare between the available plans and then buy the most suitable policy. Just visit https://www.turtlemint.com/car-insurance/, provide your car’s details and then get to check the quotes of different plans. Select a plan based on the coverage offered and the premium rate, fill up an online proposal form, pay the premium and the policy would be issued instantly.

3. Is the premium for own damage higher than that of third party plans?

   Yes, it is because own damage plans provide a wider scope of coverage than third party plans. Premiums are, therefore, higher to compensate for the wider risk undertaken by the insurance company.

4. How many add-ons can I choose under my own damage cover?

   You can choose as many add-ons that you want. However, remember that each add-on would include an additional premium. Moreover, you should assess the suitability of every add-on before you add it to your own damage plan.

5. Would I lose the no claim bonus if I do not renew my own damage insurance policy on time?

   If your car insurance policy expires, the accumulated no claim bonus is retained for up to 90 days post the expiry date. If you renew the policy within this period, you can retain the no claim bonus and use it to claim a premium discount on renewal. However, if you do not renew the policy within 90 days of lapse, the no claim bonus would also lapse and become zero.