A car insurance can compensate you for any financial loss due to an accident, theft or natural calamity. Depending on the insurance you choose, you can also be covered for the third-party property damage, personal injuries or death.
Types of Car Insurance
There are two types of car insurance available in India:
1. Comprehensive Insurance
What if your car is damaged due to a collision or a hailstorm or is vandalised? Comprehensive car insurance can cover you for all this plus more. It is an extensive car insurance that covers damages to your car as well as to other people's vehicles and property. You are also compensated for a loss caused by theft, fire, malicious activity or a natural calamity.
2. Third Party Insurance
You are subject to pay the damages for the third party if you are at fault in case of a collision. Third party insurance can cover you in such a situation. It pays for the damage caused by your car to other people's vehicles and property. However, it won’t cover the damages to your car if you are at fault.
If you are driving on the roads, you must have car insurance. Here’s why:
1. Mandatory law: Under the Motor Vehicles Act, 1988, it is illegal to drive on Indian roads without car insurance.
2. Unexpected expenses: A car accident is an unforeseen event that can incur a huge amount of expenses. Not having car insurance can hit your savings and leave you cash-strapped.
3. Third party damages: Damaging someone else’s property or vehicle due to a collision can land you in a nasty situation. If you have car insurance you can get the third party damages compensated without any hassle.
What does car insurance policy cover?
It depends on the policy you choose. Comprehensive car insurance can cover you for the following:
• Damage due to an accident
• Loss caused due natural calamities (Act of God) like floods, hurricane, lightning, earthquake, landslide, hailstorm, frosting, etc.
• Damage due to fire or self-ignition
• Loss due to a theft, riots, or any malicious or terrorist activities
• Damage caused in transit by road, rail, inland waterway, lift, elevator or air
• Accident cover for injuries to owner/driver of the insured car
• Compensation for death or permanent disabilities
Car insurance also covers third party liabilities. This includes:
• Vehicle or property damage due to your insured car at a public place
• Any injuries to the third party driver due to an accident
What does a car insurance policy not cover?
The following are not covered under car insurance:
• Mechanical or electrical breakdowns
• Depreciation or general wear and tear of the car
• Damage caused while driving under the influence of liquor/drugs
• Damage caused while driving without a valid license
• Damage caused while using the car for hire or reward, organized racing or speed testing etc.
• Tyre damage not resulting from an accident
• Loss of car accessories by theft
Can I buy car Insurance online?
Yes, you can buy car insurance online. In fact, buying car insurance online is faster and easier. You just need to provide your personal details and information about the car to obtain a quick quote for getting your car covered.
What are the benefits of buying car insurance online?
Imagine collecting physical brochures from different insurance companies and then manually comparing them to buy car insurance. Extremely taxing, right? You can get more when you buy car insurance online, like:
• Easy comparison: Online car insurance gives you the ease of comparing and researching products and their prices. You can read the customer reviews, share information or ask questions directly to the insurance company.
• Convenience: Convenience is the biggest perk nowadays. When you have the facility to buy car insurance online, why would you spend time and effort running from one place to another?
• Easy application: Insurance companies nowadays provide seamless online application process for buying a car insurance online. Online application forms are quick, simple and self-guided. There are lesser chances of errors and you can review your application anytime.
• Ease of payments: You get multiple options for payment when you buy a car insurance online, like- credit card, debit card, net banking, smart card etc.
• Discounts and deals: Many times there are exclusive discounts and deals running for online car insurance applicants.
Is there a discount available on car insurance?
Yes. Insurers like Bajaj Allianz come up with discounts and deals on car insurance from time to time. You can check their website for the best deals running right now.
Can I renew my motor policy online?
Yes, you can easily renew your motor policy online. In fact, you can get a No-claim bonus or NCB (if applicable) and exclusive online discounts for renewal of the policy.
What is the process of transferring car insurance when you sell your car?
Here are the steps involved:
Step 1: If you are eligible for No-Claim bonus (NCB), claim it before transferring the car insurance. The new owner can’t claim NCB.
Step 2: Once the car registration and papers are transferred, give an NOC to the new owner.
Step 3: Ask the new owner to approach the insurance company with the car transfer documents, NOC certificate, and a new application form.
Step 4: The insurance company will do an inspection of the car and the car insurance policy will be transferred to the new buyer.
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