Motor insurance is a crucial policy that covers cars, two-wheelers, and commercial vehicles. This policy financially secures you against losses or damages to your vehicle caused due to natural calamities such as earthquakes, floods, typhoons etc. or man-made disasters such as theft, burglary, riots, strikes, etc.
There are three different motor insurance policies: comprehensive motor insurance, third-party insurance and own-damage insurance. The Motor Vehicles Act, 1988 mandates vehicle owners to purchase third-party insurance that covers third-party liabilities to drive/ride on the Indian roads.
Bajaj Finance partners with top insurance companies offering online motor insurance for easy purchase and renewal of the policy at affordable premiums.
Here are different types of motor insurance policies:
Private car insurance policy
This policy insures the 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. Private car insurance policy can be further classified into liability only or package policy.
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. It provides personal accident cover for the owner rider and passengers.
Commercial vehicle insurance
All the vehicles used for commercial purposes and not for personal use are categorised under commercial vehicle insurance. Trucks, buses, heavy commercial vehicles, light commercial vehicles, multi-utility vehicles, agricultural vehicles, taxi/cab, ambulances, auto-rickshaw, etc., are some vehicles that are covered under this insurance. It provides financial coverage in case of theft, damage, third-party liability, and personal accident cover. Under commercial vehicle insurance, there are also policies specifically for heavy vehicles. The heavy vehicle insurance policy can be taken for vehicles like bulldozers, cranes, trailers and other such vehicles.
Here are different types of coverages offered under the motor insurance policy:
It is compulsory to avail of a third-party car or bike insurance policy under the Motor Vehicles Act, 2019. One is legally bound to buy this policy or else will be charged with a penalty. This insurance covers injury or death caused to a third person by your vehicle along with damage caused to property. This insurance covers only the third-party liabilities and does not provide any financial cover for the owner's vehicle or theft.
Own-damage coverage is optional. However, it is one of the essential insurance coverages as it covers damages caused to the policyholder’s vehicle. Get coverage for minor and major damages caused due to natural calamities such as storms, earthquakes, floods or man-made disasters like vandalism, riots, theft etc.
A comprehensive coverage is an all-inclusive coverage that offers both own-damage and third-party coverages. Additionally, it also offers add-on coverages that include zero-depreciation cover, engine protection cover, roadside assistance, consumable cover and passenger cover.
Here are some of the exclusions under the motor insurance policy:
Here are some of the reasons why you should buy a vehicle insurance:
Here are the eligibility criteria to purchase two-wheeler or four-wheeler insurance policy:
The following are the most significant elements that influence motor insurance premiums:1. Insured Declared Value (IDV)
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
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.
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