Car insurance is a type of motor insurance policy that covers your car financially against any damages or losses caused due to theft, fire, or natural or man-made calamities. It also provides financial coverage against damages or losses caused to a third party or their property.
Car insurance policies are divided into three sub-categories; comprehensive car insurance policy, stand-alone or own-damage cover, and third-party car insurance policy. According to the Motor Vehicles Act 1988, it is mandatory for all car owners to have at least a third-party car insurance policy in place. This insurance policy provides the basic coverage of third-party liabilities to the policyholder.
You can look for various car insurance policies online and avail of anyone who suits your requirements. On timely car insurance policy renewal, you can benefit from facilities like ‘no claim bonus’ and others.
Highlights | Benefits |
---|---|
Coverage | Comprehensive Policy - All-inclusive coverage (Own-Damage, Third-Party, and Personal Accident cover) Third Party Policy - Coverage for only third-party liabilities |
Add-on Covers | Yes, such as Zero depreciation cover, Engine protector, etc. |
No Claim Bonus | Yes, with every claim-free year |
Cashless Services | With numerous network garages across India |
With numerous network garages across India, you can get cashless services across India. It means your insurance provider will settle all the bills with the garage.
With every claim-free year, insurance providers credit you with a no-claim bonus. This lowers the renewal amount of a car insurance policy.
Additionally, you can also transfer the no-claim bonus to a new insurer if you shift your car insurance policy.
Voluntary deductible is the amount you pay in advance for any repairs and replacement work of your car. Insurance providers subtract this amount with other deductibles during claim settlement to decide on the final settlement amount.
A 24X7 roadside assistance helps you deal with any unforeseen incident as help, which is just a phone call away. Also, the towing service on offer here can help you reach the nearest service centre in case of a breakdown.
Break-in insurance occurs when an insurance policy expires due to non-renewal. However, the NCB remains intact if a policy is renewed within 90 days of expiration.
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.
• Car insurance is an agreement between a car owner and an insurance provider where a vehicle owner pays a premium to purchase financial coverage against any accident.
• Depending on a vehicle’s market value, the total sum insured of a car insurance policy is decided. There are different types of four-wheeler insurance plans based on their extent of coverage. This classification includes comprehensive policies, own damage, and third-party policies.
• However, a point to note here is that insurance providers may have different names for their policies. Essentially they will belong to one of these three categories of car insurance policies.
There are two types of car insurances available in India:
Following are some pointers that you must keep in mind before availing of an insurance policy -
Apart from these, you should also evaluate the add-on coverages and network garages before buying an insurance policy.
To purchase or renew a car insurance policy online, you can refer to the steps mentioned below -
You will receive a confirmation of buying or renewing your four wheeler insurance plan within a few minutes.
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
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.
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.
Bajaj Allianz General Insurance 4-Wheeler Policy | Acko General Insurance – a 4-wheeler Package Policy | |
---|---|---|
Category | Comprehensive | Comprehensive |
IDV | Is calculated basis on basis of To be calculated based on car make and model. | Is calculated basis on basis of To be calculated based on car make and model. |
Benefits covered | Personal accident cover, los s, and damage due to man-made calamities, third-party legal liability, loss, and damage due to natural calamities | Own damage cover, third party cover, personal accident cover |
Premium | Calculated on the basis of make, model and year of car | Calculated on the basis of make, model and year of car |
Tenor | 1 year for a pre-owned vehicle | 1 year |
Personal accident cover for occupants | Available | Available |
Key replacement cover | Available | Available |
No claim bonus | Available | Available |
Depreciation protection | Available | Available |
Engine protect cover | NA | Available |
Roadside assistance | Available | Available |
Consumable expenses | Chargeable under add-on covers | Covered with no extra cost. |
Claim settlement | 98% claims settled | 94% for FY20-21 |
Claim process | Available digitally | Available digitally |
Here are some of the add-on benefits offered under car insurance policies by Bajaj Finance:
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 |
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.
Following are some suggestions on how to reduce car insurance premiums -
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.
Here are some reasons for buying a car insurance policy online -
Nominal paperwork: Buying car insurance online entails minimal paperwork, which reduces the hassle of buying or renewing insurance.
Faster processing: Purchasing four wheeler insurance online is much quicker, reducing the turnaround time. So, you can get a policy without any delays.
Easy comparison: Opting for an online car insurance renewal or purchase is beneficial as you get the liberty to go through multiple insurance policy policy offers and then select one that meets your requirements.
No need to contact any agent: Buying a car insurance policy offline or renewing it requires you to contact an agent. Whereas, if you opt for an online service, it helps you to purchase a policy from the insurance provider directly. Resultantly, you get a chance to save on commission and other additional costs associated with a policy.
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’
Some of the notable benefits of renewing a four wheeler insurance online from us are -
Faster processing: You can apply and get your car insurance renewal completed within a few minutes.
Zero to no documentation: Car insurance renewal online helps you avoid dealing with the paperwork and get them to validate to access your policy. Usually, this online process does not need any extensive paperwork.
Secure and transparent: Online car insurance policy renewal is a secure and transparent process. You can check every detail of a policy and then make a decision.
Following is a step-by-step guide on the process of initiating a car insurance claim online -For BAGIC
For Acko :
BFL Helpline Number: 08698010101
ACKO Insurance Helpline Number: 1800 266 2256 (toll-free)
Email: wecare@bajajfinserv.in
Mailing address: Ground Floor, Bajaj Finserv Corporate Office, Off Pune-Ahmednagar Road, Viman Nagar, Pune – 411014.
*For claim related issues, please refer to your policy document or certificate of insurance (COI).
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:
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.
You can download the Bajaj Allianz Car Insurance Policy online by entering your policy number on the official website of Bajaj Allianz General Insurance. The insurance company also sends a hard copy of the policy documents to the registered address via courier.
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.
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.
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.
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.
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
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.
Voluntary deductible is the advance payment that a policyholder makes for any repairs and replacement work of their car. During claim settlement of the car insurance, an insurance provider can subtract this amount with other deductibles and then decide the final settlement amount.
In case of minimal damage, if you do not file a claim, it will add to your no claim bonus that you receive after a year of availing four wheeler insurance plan. A higher no-claim bonus means better discounts during policy renewal.
You need to contact your respective car insurance policy provider to cancel a claim. The insurer may ask you to submit a written complaint and associated papers with it.
No, in such scenarios, your claim will not be valid. With the expiration of an insurance policy, an insurer bears no responsibility for reimbursing any damages to your vehicle. Hence, submitting a claim here is futile.
In a year, you can initiate as many claims as you want. However, the total claim amount will not exceed the coverage amount mentioned in policy documents.
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