Motor Insurance 

     You will find surprising to know that India has among the highest number of road accidents in the world may be because of congested roads or negligence on traffic rules. Here comes the importance of your vehicle insurance which is the mandatory to have as per the motor vehicle act. 
                      
      Getting your vehicle insured either comprehensive or third part liability, will give you the peace of mind no matter what happens to your vehicle. If you don't insure your vehicle and unfortunately if your vehicle is damaged or injures a third party, you will have to pay for the damages or legal liability out of your own resources and you could also be held responsible for driving uninsured in a public place.  
                       
          Apply New / Used Car Insurance Now                       Apply Car Insurance Renewal

   Most of the customers are unaware of insurance facts and procedures, below are the certain FAQ's will clear your doubts.
Is it mandatory to have vehicle Insurance?
 Yes, as per the Motor Vehicle Act, every motor vehicle irrespective of its condition moving on the road has to be insured, at least with a Liability Only policy if not comprehensive package policy.

 What are the different types of motor Insurance?
  Motor insurance are two types:

1. Liability Only or Third Party cover, it does not cover any damage to your vehicle and as per the Motor Vehicles Act, it insures you against any legal liability following an accident involving your vehicle.

2. Package or Comprehensive Policy apart from covering all liabilities, as per the Motor Vehicles Act, it will also take care of damages caused to your vehicle.i.e. this policy provides reimbursement of expenses incurred on repairs of accidental damage to the Vehicle due to an accident falling within the scope of policy. 

What all covered?
Package policy covers accidental damages by or due to:

• Fire, Explosion, Self-ignition or lightening.
• Burglary housebreaking or theft and strike
• Earthquake (fire and shock damage)
• Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone, Hailstorm etc.,
• Accidental external means.
• Malicious Act
• Terrorist Activity
• Transit by road, rail, inland waterway, lift, elevator or air.

How the premium is calculated?
Premium is calculated based on the cubic capacity of your vehicle's engine, age of the vehicle, place of RTO where your vehicle is getting registered, and value of the vehicle.

By paying additional premium you can extend insurance coverage -for Personal Accident, accessories, etc.

On submission of proof of these documents - No Claim Bonus, Automobile Association and Anti-theft Device, you can avail the discounts in premium 

What is NCB? 
      NCB is No Claim Bonus and it will be given at the end of the policy period if no claim has been paid or reported under your policy for loss/damage to the vehicle and it is an incentive for driving carefully and avoiding accidents. 

    This NCB will be effective at the time of your insurance renewal and it is applicable only with Comprehensive package policies, it builds into a substantial discount ranging from 20% to 50% depending on the number of claim free years. 

Are there any Personal Accident Covers available for drivers and passengers? 
       Up to two lakhs rupees covered for owner-driver incase of Car and up to one lakh is covered incase of two wheeler towards Personal Accident Cover. This cover can also be extended to paid drivers and persons traveling in the vehicle, on a named as well as unnamed basis. 

What is IDV and how it is calculated?
     IDV stands for Insured Declared Value. In case of theft of vehicle or if the vehicle is totally damaged beyond repairs in an accident, the claim amount payable will be determined on the basis of the IDV. The IDV of the vehicle is to be fixed on the basis of manufacturer's listed selling price of the brand and model of the vehicle proposed for insurance at the commencement of insurance / renewal and adjusted for depreciation as per schedule.

Age of the Vehicle	Depreciation for Fixing IDV
Not exceeding 6 months	5 %
Exceeding 6 months but not exceeding 1 year	15%
Exceeding 1 year but not exceeding 2 years	20%
Exceeding 2 years but not exceeding 3 years	30%
Exceeding 3 years but not exceeding 4 years	40%
Exceeding 4 years but not exceeding 5 years 50 %	50%

IDV of vehicle which is beyond 5 years of age and of obsolete models of the vehicles (i.e. models which the manufacturers have discontinued to manufacture) is to be determined on the basis of an understanding between insurance companies and insured.

Can I make payment thru cheque for the Insurance?
     Yes you can pay your Insurance premium by cheque, demand draft or cash... its your convenience.

What is insurance cover note?
      Insurance cover note is a temporary Insurance document acts as a proof of Insurance with which you can register your vehicle. This cover note is valid for 60 days from the date of its issuance and is replaced by an Insurance policy.

Is it possible to renew my Insurance with another Insurance company?
      very much possible. You need to fill in a fresh proposal form and the new insurer may ask for a physical inspection of your vehicle before renewal of your policy.

What will happen if I don't pay my Insurance premium on time? 
       If you do not pay your insurance premium on time, your policy will get expired and you will not be covered under insurance act and if anything happen to your vehicle, the Insurance Company will not be liable for the same. Moreover, you cannot legally drive your vehicle without Insurance in any public place.

Can I cancel my Insurance during the policy period and claim refund? 
       You can cancel and get the balance premium refunded. This is possible only if you show that your vehicle has been insured elsewhere, or your vehicle has been legally cancelled by the RTO.

How to claim Insurance? 
       In the event of an incident giving rise to a claim under the policy, one should follow below procedure:

Case 1: Accidental damage to the vehicle

1. Immediate intimation to the insurance company and they will issue a Claim Form.
2. Submit a Claim Form duly filled in along with copy of Registration Certificate and driving license of the driver of the vehicle at the time of accident as also estimate of repairs.
3. Vehicle will be surveyed by an insurance company Surveyor and he will submit his report to the company. In case of a major damage to the vehicle, a spot survey, at the site of accident, would also be arranged by the company.
4. Actual bills/cash memos are to be submitted duly signed by the insured.
5. Once the Claim is approved, Salvage of the damaged parts may be required to be deposited with the insurance company.