Overview of Car Insurance Plans in India
Car insurance safeguards your car against any financial loss that may occur in case of an accident or any event unfortunate. It is a contract between the car owner and the insurance company for protecting the interest of the policyholder against monetary loss due to car damage.
The roads are uncertain and keeping this in mind, car insurance has been made mandatory in India. Owning a car is exciting but it is also important to keep it secured with insurance given the rise of vehicles on the roads and accidents as well. A car insurance policy comes to rescue when and lowers the cost of damage or repair significantly.
Benefits of Car insurance Plans in India:
The following are the benefits of having an insurance policy for your car
- An insurance policy provides monetary benefits to the survivors in case of accident and support in treatment expenses. It also provides death benefits to the nominee or the family members of the deceased/insured
- It covers the policyholder and pays for lawsuits, legal fees arising out of the accident
- An insurance policy covers the repair bills of the damage caused to the vehicle due to accident
- An insurance policy covers the damage caused to the vehicle due to fire or natural calamities, theft and other man-made incidents
- A car insurance policy provides discounts on premiums for having more than one insurance policy with the same insurance company, in case of theft of the car.
- An insurance policy provides extended coverage for other people driving the car of the policyholder with permission.
- An insurance policy provides rewards in the form of No Claim Bonus and others.
Features of Car Insurance Plans in India:
The following are few salient features of a car insurance policy
- Covers for risk
Car insurance covers the policyholder against risk of damages by man-made disasters like fire, riots, theft, etc, natural disasters like flood, earthquake, landslide, etc and damage during transit, etc
- The insured value
The car is insured for a value known as Insured Declared Value which is based on the price of the manufacturer less the depreciation.
For car insurance, the policyholder is needed to pay premiums which are decided on the basis of
- The type of vehicle, model number fuel type, capacity, etc
- The city
- Age and profession
- Accessories added or any modifications made in the policy
This feature allows the policyholder to add extra cover to get protection against the risks that are not covered under the standard policy. Some of such covers are no claim bonus protection, zero depreciation, accident hospitalization, cover for co-passengers and driver, etc.
- Tenure and claims
An insurance policy is valid for a year after which they can easily be renewed. The claim settlement process has also been simplified by reimbursement or cashless services in the network garages
Types of Coverage under car insurance
There are two types of car insurance coverage provided by the insurance companies
- Third-Party liability
This plan protects against the claims made by the third party like the driver of the other vehicle, passengers or owner of the other vehicle, pedestrians, etc. This plan is specifically designed to provide the policyholder cover against the claims made for any bodily damage or injuries to the third party and the damage caused to the vehicle. This is a mandatory policy for all vehicles in India.
- Comprehensive Car Cover
This insurance policy comes with higher protection for the vehicle insured. The advantage of buying this insurance policy is that this policy protects the policyholder and covers own vehicle damage due to accident, fire, theft, vandalism, etc. This policy also includes third party liability. Added benefits and features are also provided under this plan which makes it one of the best plans for car insurance.
List of car insurance companies with best claim settlement ratio
An insurance company is judged on the basis of the claim settlement ratio. Here is a list of few leading car insurance companies with high claim settlement ratios for the year 2018
Insurance Company Claim Settlement Ratio or Incurred Claim Ratio
|Car Insurance Companies
|Incurred Claim Ratio
|Bajaj Allianz car insurance
|New India Assurance car insurance
|ICICI Lombard car insurance
|Tata AIG car insurance
|HDFC ERGO car insurance
|Reliance car insurance
|United India car insurance
|Oriental car Insurance
Why is car insurance necessary?
Here are a few reasons why having car insurance is necessary
- Mandatory: Having motor insurance is no longer a choice. The Motor Vehicle Act has made it mandatory for all the vehicles whether private or commercial, to have valid car insurance wherein third-party liability is also mandatory. The buyer can choose between third party liability cover or comprehensive cover. The third-party liability has been made mandatory to cover the losses caused to the third party.
- Reduce the cost of damage: Car insurance reduces the cost of damage caused to the vehicle, the policyholder/owner, cost or repair, legal liabilities, loss of life, hospitalization cost, etc. Car insurance policy will come to rescue at times like these.
- 24*7 assistance: These days most insurance companies provide 24*7 roadside assistance in case of a sudden breakdown
- Cashless services: Car insurance also comes with the option of availing cashless services in the certified network garages across the nation.
- Relieves mental stress: Having an insurance policy for your car gives you peace of mind by supporting financially for unfortunate events.
Add-ons in a car insurance policy
Insurance companies provide add-on covers which are additional covers to protect your car and provide extra coverage with the basic insurance cover. Add-on covers can be taken upon payment of extra premium.
- No Claim Bonus Protection
For every claim-free year, the insurance company provides a discount on the premium to be paid upon renewal of the insurance policy. This bonus is cumulative and every year, increases. No Claim Bonus protection cover protects the NCB. No Claim Bonus becomes void on making a claim and this add on the cover helps you in retaining the No Claim Bonus even after making a claim.
- Engine Protection Cover
This cover protects the policyholder and compensates for any damage caused to the engine by leakages or water ingression. This add on cover protects the engine, gearbox and differential parts of the insured vehicle.
- Zero depreciation cover
This add-on cover compensates for the depreciating value of the car. With this cover, the policyholder does not have to pay for the depreciated value of the car. This add-on is subjected to some claims. The feature of voluntary deductible remains applicable even with zero depreciation add-on cover.
- Consumable Cover
This add-on cover compensates for the consumable items like nuts-bolts, grease, lubricants, engine oil, brake oil, etc.
- Key protection cover
This add on covers the policyholder for expenses incurred on key replacement or repair. This is a fixed number claim add-on cover and requires FIR in case of theft. The cover pays for replacing the key and lock in case of both thefts and lost.
- Daily allowance
This cover gives the benefit of daily allowance when the car is at the workshop for repair for more than 3 days. This allowance is given for travelling through any other mode other than the insured vehicle.
- Personal Accident Rider
This rider provides coverage for personal injury, death, disability or damage due to an accident.
The Application Process for car insurance plans in India
The application process for buying car insurance cannot get easier than this. The online buying option allows the user to get their car insured in just a few clicks without any hustle.
- To buy login to the official website of the policy, you want to buy
- Fill in the details like vehicle registration number, vehicle model, fuel type, age of the vehicle, etc
- Check the premium quote and once satisfied, make the payment online through debit/credit card, net banking, etc.
Applying for car insurance through Turtlemint:
If you are willing to buy car insurance for your new car or want to renew your insurance but in a dilemma about the company, then Turtlemint is just the right place for you.
Turtle mint allows you to choose from the best plans after comparing them on various parameters. All you have to do is
- Log in to https://www.turtlemint.com/
- Select car from the option and enter your car registration number
- You will be directed to another page asking for details like vehicle type, model number, registration number, previous insurance number (if any), type of policy, etc.
- Once you have provided all the information, you will be directed to a page where various plans and their premium quotes are displayed for you to compare and choose the best policy.
- Once satisfied, you can directly buy your car insurance from the Turtlemint website’s same page by clicking on ‘buy now’.
- Make the payment online through suitable mode and you’re done
Eligibility and documents required for buying car insurance plans in India
The eligibility and requirement of documents for buying car insurance are
- RC book
- Driving license
- Vehicle registration
- Identity proof
- Residence proof
- PAN number
- Invoice of the new car
- Insurance policy document (if any)
- No Claim certificate in case of already existing policy
Claim process of car insurance in India
The car insurance claim process has also become as easy as buying car insurance. You can also claim your insurance offline by connecting with the insurance company representative and inform them about the claim to be made.
You will have to follow the following steps
- Inform your insurer about the incident
- File an FIR in case of theft or loss due to man-made incidents
- Do not move your vehicle from the spot before the surveyor visits
- Once the surveyor completes the survey and submits the report, your cashless service option will be available for you to repair your vehicle.
- Submit the original bills and estimate invoice for reimbursement
- Submit documents required like policy document or number, RC, driving license, etc
- Once the process is completed, the insurance claim will be settled
Exclusions in car insurance plans in India
Whenever you buy car insurance, keep the following exclusions. Not every damage needs to be entertained by the insurance.
- Driving under the influence of alcohol, drugs or any other intoxication
- Accidental damage caused due to illegal activity
- Driving without driving license
- Damage caused due to nuclear attack or war
- Using vehicle other than the mentioned use
- Regular wear and tear
Any number of add-on covers can be taken under car insurance. Each add-on cover is bought with an additional premium.
IDV or insured declared value is the actual sum insured of the vehicle.
Yes, certain changes can be done by the insurance company.
Usually, roadside assistance can be claimed for a maximum of four times in one policy year.
The documents that should be carried in a car at all points of time are:
- Driving license,
- The original Registration Certificate of the car
- A copy of a valid insurance policy and
- The Pollution Under Control or the PUC certificate