Car Insurance

Given the increasing road traffic, four wheelers face many hazards regularly, ranging from a minor dent in the trunk to major accidents. Additionally, natural disasters may also result in damages. Thus, having a car insurance policy is a must. With a good car insurance or a four-wheeler insurance, one can be financially equipped to cover the losses/damages caused due to any unforeseen event.

Car insurance covers your four-wheeler from risks like natural or man-made disasters, theft, and vandalism among others. Besides, it protects you financially to cover expenses of third-party liabilities. The Motor Insurance Act, 1988 has strictly mandated the need to acquire third-party insurance to drive on Indian roads.

Features and Benefits of Car Insurance

Here’s a quick glance at the features offered under Car insurance by Bajaj Finance:

Time taken to buy a car insurance Less than a few minutes
Cashless repairs Available
Cashless hospitalization Available
Customisable add-ons Available
No Claim Bonus (NCB) benefits Get up to 50% discount
Easy claims Quick and digital process
Easy claims Seamless digital process
Comprehensive cover Available
Third-party liability cover Available

  • Cashless garage network

    In a cashless garage network, the repair costs of an insured vehicle are directly handled by the four-wheeler insurance company. This way, the owner is not required to pay for the repairs in advance. After the repairs are completed, the insurance company will settle the bill with the garage directly.

  • No claim bonus

    The No Claim Bonus, or 'NCB,' is a bonus that the insurer gives to the policyholder for not filing a claim. Depending on the number of claim-free years, it helps lower the renewal premium for your car policy. NCB may also be transferred to new car insurance if the owner wishes to do so in the future.

  • Third-party liability

    Third-party liability compensates for any loss/damage caused to the third party as a result of an accident or any other incident, while the insured vehicle was in use. The third-party car insurance financially guards the car owner by covering the expenses in case of any damage caused to the third party’s property or demise or bodily injury caused to that person due to an accident.

  • Voluntary deductible

    In the event of a claim, the voluntary deductible (VD) is the amount you want to pay over and above the mandatory deductible. (Final claim amount will be after deduction of depreciation on parts, VD, and compulsory deductible as per IMT)

  • Towing facility

    Bajaj Finance provides appropriate towing services to the nearest garage (within a 50-kilometer radius of the breakdown/accident) if the insured vehicle is immobilized.

  • Break-in insurance

    Break-in Insurance occurs when the policy lapses due to the non-renewal of the insurance on time. The NCB remains intact if four-wheeler insurance is extended within 90 days of its expiration date.

  • Protection from natural or man-made calamities

    A car insurance policy protects you from any natural or man-made disaster, as well as any personal injury expenses, civil responsibility, and third-party damages.

Types of Car Insurance

There are two types of car insurances available in India:

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 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.

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 car insurance is hence mandatory in India and covers you 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.

What's Covered in a Car Insurance Plan

Comprehensive car/4-wheeler insurance can cover you against the following risks:

• Damage due to an accident
• Loss caused due to natural calamities (Act of God) like floods, hurricanes, lightning, earthquake, landslide, hailstorm, frosting, etc.
• Damage due to fire or self-ignition
• Loss due to 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 that include:

• 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's not Covered in a Car Insurance Plan

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

Note: Exclusions may differ from policy to policy. Therefore, it is recommended to refer to the exclusions given in the policy brochure.

How Insured Declared Value (IDV) Gets Impacted

Insured Declared Value (IDV) is a significant factor in deciding the insured's four-wheeler insurance cost. IDV is the fixed value at which the company secures the policyholder's vehicle in a car insurance online policy. The policy sum covered is calculated using the vehicle manufacturer's advertised selling price plus the cost of any accessories. According to the Indian Motor Tariff, the insurer calculates the amount after deducting the depreciation for every year. For example, assume that the insured added any electronic equipment to the car that wasn't included in the manufacturer's suggested retail price. In that instance, in addition to the IDV, the insurer adds the item's actual worth (after depreciation) to the policy sum insured.

Available Add-ons with Bajaj Finance Car Insurance Policy

Here are some of the add-on benefits offered under car insurance policies by Bajaj Finance:
Zero depreciation cover
Also known as a bumper-to-bumper cover, with the zero-depreciation add-on, you can nullify the depreciation associated with your car. In this cover, you receive full value for your car and all its spare parts, as the depreciation of your car is not considered by your insurer.

Engine protector
Expenses incurred as a result of engine damage are not protected by standard four-wheeler insurance plans. Engine protector add-on helps you save up to 40% of the amount you would spend on getting your car’s engine fixed.

Key and lock assistance
This add-on is designed to cut down on the costs associated with missing or damaged keys. We take care of the entire purchasing and replacing of not just the car key that has to be replaced but the entire locking system.
 

24*7 spot assistance
This is one of the most useful car insurance add-ons because it means you are never left stuck on the road due to a car problem. No matter if you must get a tyre changed, or have an expert look into your car’s engine, or need assistance in settling an accident, our team is just a phone call or a click away from assisting you.

Consumables cover
Allow us to take care of the expenses incurred when buying consumables for your car during maintenance or after an accident with this add-on. The consumable expenses coverage includes engine oil, braking oil, coolant, gearbox oil, and more.

Personal baggage
The personal baggage add-on protects your personal belongings and reimburses you for any losses incurred as a result of damage or theft from the vehicle.

Conveyance benefits
With this add-on, you don’t have to worry about burning a hole in your wallet for the daily cab or transportation charges you are likely to pay during your car’s servicing. We take care of your post-accident conveyance for your everyday commute.

How to calculate car insurance premium online

There are three primary components through which car insurance premiums can be calculated online hassle-free and quickly. Here are a few simple steps to follow:

•The Insurance Regulatory and Development Authority of India (IRDAI) sets the third-party liability premium, which is proportional to the vehicle’s cubic capacity.
Cubic capacity Premium with effect from June 16, 2019 (Rs.)
Not exceeding 1000 cc Rs. 2,072
Exceeding 1000 cc but not exceeding 1500 cc Rs. 3,221
Exceeding 1500 cc Rs. 7,890

• IDV x [tariff rate] – [discounts] + add-on covers is the formula for calculating the own damage premium.
• Premium personal accident insurance + additional coverage
These three components, as well as the policyholder’s final car insurance price, are affected by the following factors:

Insured Declared Value (IDV)

The maximum amount a policyholder can claim under the coverage is known as the IDV. The policyholder’s IDV and premium will be higher if the market value of their car is higher.

Make and model

High-end vehicles have a higher insurance premium simply because the cost of repairs/replacement is higher.

Fuel type

Cars that run on petrol are less expensive to repair than those on diesel or compressed natural gas. Therefore, the four-wheeler insurance premium may vary according to the fuel type.

Year of manufacture

The car’s year of manufacture and age is taken into consideration while calculating the premium amount.

Location

Accidental damages are more likely in metropolitan areas due to the density of traffic. As a result, the insured’s premium may differ depending on where the insured lives.

No Claim Bonus (NCB)

If the insured has not filed any four-wheeler insurance claims previously, the car insurance holder may be eligible for a discount between 20-50% on the rate. Additionally, the online car insurance renewal will also lower the price.

Add-ons

Add-ons selected by the insurance holder will be included in the policy for an extra cost.

How to save on car insurance premium

Here’s how you can save on the car insurance premium:

NCB

The car insurance holder can collect up to 50% of NCB if he/she hasn’t filed any claims in the preceding years.

Security measures

The car insurance policyholder may be eligible for a discount if the insured has taken extra precautions to keep the four-wheeler safe from being stolen. For instance, installing an anti-theft device (authorised by ARAI) on the insured’s automobile will often result in a 2.5% reduction.

Why Choose Car Insurance from Bajaj Finance?

Reliable Brand Name
When trusting with insurance, it is important to ensure that your chosen insurance provider offers the best value for money. Bajaj Finance is a well-known financial institution with millions of customers who entrust us with their car insurance policy. Adding to the safety and credibility, we have been awarded the highest safety ratings of FAAA by CRISIL and MAAA by ICRA.

Quick and Online Purchase Process
It's a common practice to buy car insurance online these days. You can now insure your car against any damage due to an accident, theft, fire, etc. within a couple of minutes. The car insurance online process is convenient and saves time. With benefits such as payment reminders, easy comparison, online forms, and document soft copies, Bajaj Finance’s car insurance online claims save your efforts with zero paperwork.

Easy Claim Process
Bajaj Finance offers paperless door-to-door claims. With the Bajaj Finance car policy, one can now raise a claim via a hassle-free, paperless car insurance online process within a few minutes. You can opt for contactless claims or easy document collections from the comfort of your home.

Documents Required for Claim Process

Requesting for car insurance claims is not a hard nut to crack. It is important however to have the correct set of documents on hand. The following are the documents required to file a car accident insurance claim:

  1. Car insurance policy paper or a copy of the cover note.
  2. Driving License of the person behind the wheels.
  3. RC or registration certificate of the insured vehicle.
  4. A valid claim intimation form.

How to Apply Car Insurance Online

Just follow the below steps to apply for bike insurance online

Step1: To apply for the product, click on ‘Apply Now’ and fill in the necessary details in the application form.
Step2: Make fee payment online.
Step 3: If required, opt for a call back from our representatives or complete the process by clicking ‘Buy Now’

How to renew car insurance online

Here are a few simple steps to renew your car insurance online

• Visit the insurer’s website and click on the ‘Renewal’ tab.
• You need to enter these details on the specified portal to receive the car insurance policy information:
1. Phone number
2. Registration number of a vehicle
3. Number of the car insurance policy
• Based on the information provided, you will be able to evaluate your IDV and the premium to be paid for the car insurance renewal online.
• Make the payment for the renewal online from any of the preferred payment modes.

Car Insurance Frequently Asked Questions FAQs

1. Can I renew my car insurance policy online?

Yes, you can easily renew your car insurance policy online. Also, you can get a No-claim bonus or NCB (if applicable) and exclusive online discounts for the renewal of the policy.

2. Is there a discount available on car insurance?

Yes. Insurers like Bajaj Allianz come up with discounts and deals on four-wheeler insurance from time to time. You can check their website for the best deals running right now.

3. Can I buy car insurance online?

Yes, you can buy car insurance online. Buying car insurance online is faster and easier. You just need to provide your details and information about the car to obtain a quick quote for getting your car covered. Bajaj Finance also offers the facility to apply for car insurance online.

4. Why do I need car insurance?

If you are driving on the roads, you must have car insurance. Here’s why:

• Mandatory by Law: Under the Motor Vehicles Act, 1988, it is illegal to drive on Indian roads Without third Party liability car insurance.
• 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.
• 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, then you can get the third-party damages compensated without any hassle.

5. 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. You can avoid this exhausting task by simply buying 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. Buying car insurance online can save your time and effort on running from one place to another.

Easy application: Four-wheeler insurance companies nowadays provide a seamless online application process for buying 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 car insurance online, like- credit card, debit card, net banking, smart card, etc.

Discounts and deals: You get to enjoy exclusive discounts and deals running for online car insurance applicants.

6. Are offline and online car insurance policies the same?

Yes, offline and online car insurance policies are the same. Purchasing car insurance online is easy and convenient. Once the four-wheeler insurance holder has paid for the online insurance, the policy provider will email the buyer the policy documents and send them to their registered address.

7. Where can I check my car insurance policy details?

You can check the car insurance information on the provided policy documentation. You can also verify the policy details by logging into the insurer’s website by simply filling in these details.
-Policy number
-Start and end date of the policy
-Type of policy (comprehensive, own-damage, or third-party insurance)
-Number of the engine and the chassis

8. What is an endorsement?

An endorsement is written documentation of the car insurance policy that states the changes in the policy agreed between the insurer and policyholder. It's a document that reflects any additions made in the terms that adjust the car insurance policy coverage. This document is essential, and it mentions all the key points that the car insurance policyholder should note.