Car Insurance
Car Insurance provides financial protection to the policy holder against financial losses arising due to accident, theft, damage due to natural disaster ,man-made calamities or damage to third party person or property. Instead of paying the financial expenses from your pocket due to any of the above, one can pay insurance premium to an insurance company and buy a policy. The insurance company will in turn pay of maximum expenses incurred by the insured due the accident/damage.
Why Car Insurance?
Car insurance or a four-wheeler policy is necessary to protect your car and you from various situations and scenarios that lead to financial damages. Here are some of the reasons why you need to have a third-party or comprehensive four-wheeler insurance policy:
- Compliance with the law
- Protection from third-party liability
- Coverage against theft
- Protection against financial losses
- Cover against natural calamities
- Personal accident cover
Types of Car Insurance Plans.
Comprehensive Car Insurance:
This type of insurance cover provides cover against the third party liability plus pays for damages caused to your own vehicle and bodily injury. Under this cover, you can avail cashless claim when going to a network garage for repairs and you can also claim reimbursement when you approach a non-network garage for repairs.
Perils Covered:
Following perils are covered when choosing a comprehensive motor insurance policy.
- Fire, Explosion, Self- Ignition, Lightning
- Burglary/Housebreaking / Theft
- Flood, Storm, Hurricane, Tempest, Cyclone,
- Earthquake, Landslide, Rockslide
- Riot & Strike
- Malicious Act
- Terrorism Acts
- In-transit by Rail, Road, Air, or Inland waterways.
Third Party Car Insurance:
Carrying a third party insurance stands mandatory under the Motor Vehicles Act, 1988. It ensures cover against a third party liability arising out of property damage and/or bodily injury to a third party involving your vehicle. It keeps you away from any legal repercussions arising out of the third party liability. It does not cover any loss/ damage caused to your own vehicle. You can also get the personal accident cover for owner-driver.
Standalone OD Insurance:
An Own Damages is a new, standalone policy that only covers for damages and losses to one’s own car. Any car that already has a valid third-party car insurance can also buy an own damage cover to protect their own car as well. Without a valid third-party car insurance, you can’t buy an OD policy.
The following table illustrates the common difference between both comprehensive & third party bike insurance:
| Factors\Types of Car Insurance Plan | Third Party Car Insurance | Comprehensive Car Insurance | Stand alone OD |
|---|---|---|---|
| Scope of Coverage | Narrow | Wider | Narrow |
| Third-Party Property Damage | Covered | Covered | Not Covered |
| Third-Party Bodily Injury | Covered | Covered | Not Covered |
| Own Damages of Car | Not Covered | Covered | Covered |
| Car Theft | Not Covered | Covered | Covered |
| Personal Accident Cover | Covered | Covered | Covered |
| Availability of Add-Ons | Not Covered | Covered | Covered |
Benefits of Car Insurance:
Safe on Legal Ground
One of the prime benefits of buying a motor insurance is the legal protection. You never have to face a third party liability that may arise due to any damage to the other vehicle. Instead, your motor insurance will pay for it.
Covers Damage Costs
A motor insurance provides cover against the costs that arise due to a third party liability. You can also get Own Damage (OD) cover under a comprehensive motor insurance cover.
Ease of Vehicle Repairs
Your insurance policy will also pay for repairs that may be costly on your pocket. You can go to a network garage to get a cashless service and also avail reimbursement facility when getting repairs with a non-network garage.
Cost Effective
With the increasing usage of internet access, you may buy new or renew your motor insurance policy from any corner of the world. You may buy a motor insurance policy at just a few clicks. Assess the benefits by comparing online and buy an insurance plan online as per your need. You can also avail additional discounts by buying online.
Add On Covers for Car Insurance Policy
Zero Depreciation Cover
Ideal for cars less than 5 years old, zero depreciation cover allows you to nullify the depreciation charged on your car and its parts and gives you the full value of repairs, costs and replacements during a claim.
Return to Invoice Cover
In case of theft or damages beyond repair, return to invoice add-on gives you the benefit of getting back the complete amount of your car's invoice value, including the cost of registering a new vehicle and its road tax respectively.
Passenger Cover
We hope this never happens, but if something happens to the person sitting with you in the car, in an unforeseen accident this cover is a fall back.
Tyre Protect Cover
Generally, tyre damage isn't covered in standard insurance unless the damage takes place during an accident. That's why this tyre protect add-on gives you the benefit to safeguard and cover for tyre damages such as tyre bursts, bulges or cuts during all other situations possible.
Breakdown Assistance
We all need a little help sometimes! Our Breakdown Assistance Add-On gives you the benefit of taking help whenever required, i.e assistance during car breakdowns at any time you'd like. The best part? It doesn't even count as a claim!
Consumable Cover
A consumable cover gives your car an additional layer of protection. It covers the cost for all your car's nitty-gritties, such as the engine oils, screws, nuts and bolts, grease, etc in a situation of an accident
Engine and Gear-box Protection Cover
Do you know that the cost of replacing your engine is approximately 40% of its cost? In a standard car insurance policy, only damages caused during the accident are covered. However, with this add-on, you can specifically also cover for the life of your car (the engine and gearbox!) for any consequential damages caused post the accident. This could happen due to water regression, leakage of lubricating oil, and undercarriage damages.
Engine and Gear-box Protection Cover
- 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
Why Buy Car Insurance Online?
Transparency
While you are comparing the car insurance plans, then you can easily check what the things that are covering in a particular insurance plan are. You can also check what the things that particular insurance services provider is offering to you are.
Save Money
As we have discussed earlier, while comparing the insurance plan, you can easily save your money. While comparing, you can easily get free quotes from the insurance services provider.
Check Out All The Options Available
While you are comparing the insurance plans, then you will come across the number of options which are available with the particular plan and select the one, which suit your budget as well as needs.
Car Insurance Claims
There are two ways of filing a Car insurance claim online with your two wheeler insurer online. You can either lodge a cashless claim or a reimbursement claim with your insurer. Let us discuss both types of claims in detail.
Cashless Claim
In case of cashless claims, the claim amount will be directly paid to the network garage where the repairs were done. Cashless claim facility can be availed only if you get your insured vehicle repaired at one of the network garages of your insurer.
Reimbursement Claim
Reimbursement claims can be registered if you get the repairs done at a garage which is not a part of your insurer’s list of approved garages. In this case, you will be required to pay the repair expenses and will later have to file for reimbursement with your insurer.
Cashless Claim Settlement Process:
- Inform your insurer about the accident or mishap
- Survey to estimate the damage will be conducted
- Fill in the claim form and submit it along with all other required documents
- Insurer will approve the repair
- Your vehicle will be repaired at the network garage
- Post repairs, your insurer will pay the repair charges directly to the garage
- You will be required to pay the deductibles or non-covered expenses (if any)
Reimbursement Claim Settlement Process:
- Register the claim with your insurer
- Fill up the claim form and submit it with your insurer along with other documents required
- A survey will be conducted to estimate the repair cost and you will be informed about the assessment
- Give your insured vehicle for repair at a non-approved garage
- After the repair is done, the insurer conducts another inspection
- Pay all the charges and clear the bill at the garage.