Motor Insurance

The following are the most significant elements that influence motor insurance premiums:

1. Insured Declared Value (IDV)
2. Make and model of the car
3. Deductibles
4. Seating capacity
5. Cubic capacity
6. Previous insurance history
The type of coverage has an impact on the premiums. Do compare insurance premiums to obtain the best deal. Third-party premium amounts are decided by the IRDA.

A vehicle insurance policy is typically valid for one year and must be renewed prior to the expiration date to avoid a lapse in coverage. Always pay your car insurance premium before the due date to ensure that your vehicles are covered. In the event of a policy lapse, the insured vehicle will be subjected to a new inspection before renewal. Furthermore, once the comprehensive insurance coverage gets lapsed after 90 days from the date of expiry, you will not receive the No Claim Bonus benefit.

A policyholder receives a No Claim Bonus (NCB) if he hasn't filed any claims throughout the insurance period. The comprehensive insurance plan in India varies between 20-50%, according to current laws. A third-party motor insurance plan does not qualify for the NCB. At the time of the vehicle transfer, the insurance plan can be transferred to a new insurance provider, but NCB can't be transferred. The new buyer is responsible for paying the outstanding balance. The NCB can be used by the car's original/former owner when acquiring a new vehicle.

Yes, if the policyholder changes their motor insurance carrier at the time of renewal, they are eligible for the NCB. All you'd have to do is show verification of the NCB you've earned from your existing insurance provider. You can show an authentic copy of your expired policy as well as a certification showing you haven't filed a claim against the (expiring) insurance plan. Proof of this can be found in a renewal notification or a letter from your former insurance provider stating that you are eligible for the NCB.

The deductible is the amount that must be paid out of pocket if a claim is filed. In general, there is a standard or mandatory deductible for most automobiles such as two-wheeler vehicles or cars and commercial vehicles, such as trucks. It depends on the carrying capacity or cubic capacity of the vehicle. However, in some situations, the insurance carrier may impose a larger deductible based on the vehicle's age or the frequency with which the claims are filed.

The location where the automobile is registered is considered while deciding the premium of the motor insurance taken. Don't mix up the registration location with the location where the vehicle is operated. For instance, if your automobile is registered in Chennai, the applicable charges for Zone A would be charged. Even if you shift to another town or city, the same charges would be applied. Likewise, if an automobile is registered in a town, Zone B premium charges are applicable. If the car owner later relocates to a metropolis, he will only be charged the Zone B rate.

If you installed an LPG or CNG kit in your car, you must notify the Road Transport Authority's office where the car was registered so that the appropriate adjustments in the registration certificate can be made. The motor insurance provider should also be notified so that it can provide coverage for the kit in the Own Damage Section for an additional price based on the kit's worth.

The documents listed below are required by the majority of motor insurance companies. But first, carefully read the fine language of your policy and double-check:

1. Duly filled claim form
2. Photostat copy of automobile's Registration Certificate
3. The original estimate of loss
4. Original invoice and payment receipt of the repair. If you have availed of the cashless facility, a repair invoice is required to be submitted.
5. FIR is required if you file a claim for vehicle loss/theft
6. The keys are required to be submitted along with a non-traceable certificate in case you are filing theft claims.

Yes, you can renew your automobile insurance coverage online by going to the official website of your insurer or an insurance broker.

A motor insurance cover note is a temporary Certificate of Insurance (COI) provided to the policyholder until the actual COI is delivered by the insurer. The cover note is issued for the time being after the policyholder has submitted the proposal form and paid the premium towards the chosen policy. It is valid for up to 60 days from the date of issuance and your insurer must provide the original policy document within this interim period. This cover note serves all the purpose of a valid insurance policy such as you can show this temporary certificate to the traffic policy at the time of checking. Also, you can claim coverage in case of an accident or theft.

Yes, the ongoing motor insurance policy must be transferred to the buyer's name if you decide to sell your two-wheeler, four-wheeler, or commercial vehicle. The buyer should apply for the insurance transfer within 14 days of vehicle sale. You can also transfer your policy to a different vehicle, but the buyer will need to acquire a new policy for the transferred vehicle.