Eligibility criteria for buying a motor insurance policy
Here are the eligibility criteria for purchasing a two-wheeler or four-wheeler insurance policy:
- The vehicle should be registered under your name.
- You should have a registration certificate.
- You should have a valid driver’s licence.
- You should have an updated Pollution Under Control (PUC) certificate.
Types of motor insurance policies
Here are the different types of motor vehicle insurance policies:
Private car insurance policy
This policy insures the private car against loss or personal damage due to fire, natural disasters, theft, and other mishaps. In addition, it offers cashless claims and other benefits. The premium amount varies based on the make and value of the car.
Two-wheeler insurance policy
A two-wheeler insurance policy covers scooters and bikes. It protects two-wheelers against damages caused due to accidents, disasters, fire, theft, and other risks. Two-wheeler insurance policies also provide personal accident cover for the owner-rider and pillion riders.
Commercial vehicle insurance
All the vehicles used for commercial purposes and not for personal use are under commercial motor insurance. Commercial vehicle insurance covers trucks, buses, heavy commercial vehicles, light commercial vehicles. Also, multi-utility vehicles, agricultural vehicles, taxis/cabs, ambulances, auto-rickshaws, etc. It provides financial coverage in case of theft, damage, third-party liability, and personal accident cover. Under motor vehicle insurance policy, there are also policies specifically for heavy vehicles. You can buy heavy motor insurance policy for vehicles like bulldozers, cranes, trailers, and other such vehicles.
Types of coverages offered under motor insurance policies
There are three types of coverage offered by vehicle insurance policies for cars, two-wheelers, and commercial vehicles.
Comprehensive motor insurance cover
A comprehensive car insurance policy is an extensive and all-in-one policy. The policy covers damages and losses caused to the insured vehicle also known as own damage and the third party. A comprehensive motor insurance policy also offers personal accident cover to the owner-driver and co-passenger.
Third-party insurance cover
A third-party insurance policy covers third-party liabilities. The insurer will compensate for any damages or losses caused to a third party. It covers the damages caused to their vehicle or property or physical injury. As per Motor Vehicle Act, having a third-party insurance policy is mandatory in India. This is the most popular and highly bought insurance policy by vehicle owners. The Insurance Regulatory and Development Authority of India (IRDAI) standardises the premiums for third-party insurance policies.
This is a standalone insurance cover. It covers damages or losses caused to the insured vehicle due to accident, fire, flood, or earthquake. It also covers theft, riot, or strike. Most vehicle owners prefer buying own-damage motor insurance policy with third-party insurance policy for complete risk coverage.
What is not covered under a motor insurance policy?
Here are some of the exclusions under a motor insurance policy:
- Damage caused post the expiry of the policy.
- Any damage caused when the person driving does not have a valid driving licence.
- Damages due to driver's negligence.
- Any accidental loss or damage caused outside the geographical area mentioned in the policy.
- Damage caused while the person driving was under the influence of alcohol or any intoxicating substance.
- Damage caused to the vehicle due to war, terror attacks, invasion, or foreign enemy action. Also, civil war, mutiny, rebellion, hostilities, radiation, or nuclear material/weapons.
- Mechanical or electrical breakdown, wear and tear of the vehicle.
Why should you buy vehicle insurance?
Know why you should buy motor insurance:
- To stay financially secure: You can claim repair or replacement costs for damages caused to your vehicle.
- To get financial coverage for third-party liabilities: You can claim against the expenses incurred for damages caused to a third party. It is also mandatory by law.
- Motor insurance policies also offer personal accident cover up to Rs. 15 lakh. You can avail of this cover to get quality medical treatment in case of an accident without worrying about the funds.
Things to consider when buying a vehicle insurance policy
Look for the below points before buying a motor insurance policy.
Check the claim settlement ratio
The claim settlement ratio helps you know how many claims have the insurance company settled in a year. A higher claim settlement ratio indicates the insurer’s efficacy in settling claims without any hassle.
Check the list of network garages
Most insurers tie up with several garages across the country, making a network to offer cashless facility to the policyholders. You can repair your vehicle at these cashless garages without paying any cash up front.
Know the policy terms and conditions
You must carefully read the policy terms and conditions to avoid any hassle when raising a claim for vehicle insurance policy. Read the coverage offered, exclusions, deductibles, and other important details. Know the claim process in detail. Also, the procedure you need to follow in case of an accident or damage caused to your car.
Coverage offered on vehicle insurance policy depends on the vehicle’s insured declared value. You will receive the compensation by claiming the benefits accordingly.
Check the add-on covers available on the motor insurance policy that you plan to buy. These add-on covers come at additional premiums but give added coverage to your vehicle.
Steps to buy vehicle insurance online
Buy any motor insurance policies online with zero paperwork on Bajaj Finance Insurance Mall. Here is how you can buy vehicle insurance policies.
- Click on the ‘Get Quote’ button and fill out an application form.
- Enter your vehicle details such as vehicle type and registration number. Also, your mobile number and residential PIN code.
- On proceeding, you will get the option to choose or modify the IDV, NCB value, and add-on covers. Choose the appropriate coverage that you need.
- Choose any of the motor insurance policies as per your preference. Proceed by sharing a few necessary information.
- You can then make the payment online through any of your preferred payment modes.
Steps to renew motor insurance online
Renewing motor vehicle insurance policy has become easy and convenient. Here’s what you need to do for vehicle insurance renewal.
- Visit your insurer’s website.
- Enter your vehicle registration number and proceed.
- You need to choose the vehicle’s variant and fuel type.
- Provide the details of your previous motor insurance policy.
- Fill in your name, mobile number, and other personal details if asked.
- Choose the policy tenure that you want and submit to get the quote.
- Make the payment online through any of your preferred modes.
Benefits of renewing motor insurance online
Most insurers now offer vehicle insurance policies online. Buying/renewing motor insurance online has several benefits, such as:
- You get to compare multiple motor insurance policies online. You can compare the coverages offered, premiums, add-on covers, deductibles and many other features online.
- You can easily buy/renew your vehicle insurance online in just a few clicks. This helps you to not miss renewing your policy before expiry.
- Saves you from lengthy paperwork and running around to look for the right motor insurance policy. You can simply visit the website or use the app to know the details and compare the policies.
- You can also customise your plan as per your choice. This may increase the premium value but will help you get extensive coverage for your vehicle.
Documents required to buy the motor insurance policies
You do not need any documents to buy motor insurance policies on Bajaj Finance Insurance Mall. Simply share some basic information on the application form, such as:
- Vehicle registration number
- Mobile number
- Residential PIN code
- Previous policy details (if any)
Motor insurance claim process
You can raise a claim settlement process in two ways: cashless and reimbursement. To avail of either of these processes, you need to first contact the insurer. Here is how you can raise a claim settlement request for your motor insurance policy.
- Contact the insurer through their official website or App (if any). You can also write to them at their email ID or send an SMS.
- You then need to fill the claim form with asked documents. Your insurer will notify you about the documents required as per the claim request raised.
- In case of cashless claims, the insurer will directly clear the bills with the network garage. And, in case of reimbursement, the insurer will verify your claim documents. Then, transfer the claim amount as per the policy terms and conditions.
Motor insurance rules by IRDAI
IRDAI has updated the motor insurance rules in 2020. Here’s a quick look at what changes have IRDAI made in the rules.
|IRDAI rules in 2018
||IRDAI rules in 2020
Third-party insurance policy
|Three years for cars and five years for two-wheeler
||Same rules continue
Comprehensive insurance with third-party cover
|Three years for cars and five years for two-wheeler
||Three years of third-party insurance for cars and five years for two-wheelers with one year of comprehensive cover
Standalone own damage cover with compulsory third-party insurance
|Three years for cars and five years for two-wheelers
||Own-damage cover for one year
A motor insurance policy prepares you financially to tackle any sudden expenses. Repairing or replacing any damaged parts of the vehicle can be expensive. In that case, it may be more expensive. With a motor insurance policy, you can simply claim the amount required to repair or replace the damaged parts without any worry.
Why should you buy motor insurance policy from Bajaj Finance?
Bajaj Finance partners with top insurance companies to offer easy purchase and renewal of vehicle insurance policies. These policies come at affordable premiums. Choose from a range of comprehensive motor insurance policies on Bajaj Finance Insurance Mall. Buy them with a 100% digital process and secure your vehicle.