CAR INSURANCE POLICY FAQs

Is car insurance policy mandatory?

Yes, car insurance is mandatory in India. According to the Motor Vehicles Act of 1988, any vehicle should have a car insurance policy before stepping out on the road. The least that a vehicle owner should be insured with is a third-party liability insurance cover.

However, this cover will only cover the damages caused to the third-party. This is why many vehicle owners prefer to go for comprehensive car insurance policies which cover not only the third-party’s losses but also their own in case of an accident.

What is the difference between a third-party lability insurance and a comprehensive car insurance policy?

Comprehensive car insurance will cover all the damages done to your car as well as the third-party damages. Whereas, third-party liability insurance will only cover damages done to the third-party, and not your vehicle.

Even though it is only mandatory to have third-party insurance for a vehicle, most policyholders choose to go for comprehensive car insurance policies since these policies offer much more coverage as compared to the basic third-party insurance plans. 

What is a comprehensive insurance policy?

You are mandated to have a third-party insurance policy that will losses or damages caused to the third-party in case of an accident. However, this policy will not be covering the damages faced by you. This is where a lot of policyholders choose to opt for a comprehensive insurance policy since this policy covers not only the third-party but even the policyholder. Leaving out damages and injuries, a comprehensive insurance policy also covers:

  • Fire

  • Vandalism

  • Falling objects

  • Civil disturbances

  • Theft

  • Natural disasters

What are the various types of car insurance policies?

Following are a few types of car insurance policies:

  • Liability insurance

Liability insurance comes to your aid when you are in an accident which is caused by your fault. Such an insurance policy will cover the medical bills of the third-party and the repair costs of their damaged property.

  • Comprehensive insurance

Many vehicle owners prefer to go for comprehensive car insurance policy since this policy covers not the third-party in case of an accident, but the policyholder as well. This insurance policy also covers damages caused due to floods, bad weather, theft, and fire.

  • Collision coverage insurance

There are accidents that take place which can leave the car needing repairs which amount to more than its market value. In such cases, a collision coverage insurance can come in quite handy as this insurance will cover the repair expenses.

  • Personal injury protection plan

If you want to cover yourself (being the driver) and all your passengers, you can opt for a personal injury protection plan. Irrespective of the person responsible of the accident, the personal injury protection plan will take care of all the medical bills of the vehicle owner, driver, as well as passengers.

What are the benefits of a long-term car insurance policy?

In order to curb the total number of non-insured cars, the Supreme Court of India has mandated all vehicles bought after the 1st of September 2019 to be covered by a long-term car insurance policy.

Here are some of the key benefits of a long-term car insurance policy:

  • Your premium stays the same for 3 years

  • You can choose a policy tenure of 2 years or 3 years as per your convenience

  • You save money on administrative and policy-issuing costs

  • The No Claim Bonus structure of a long-term car insurance policy is much better as compared to the standard one-year plans. 

What happens when I wish to renew my expired policy?

If your car insurance policy has expired, get in touch with us and get it renewed as soon as you can. This is to avoid any high penalties you might possibly incur upon renewing it after a certain period of delay.

When renewing your car insurance policy, make sure to keep documents with details regarding the manufacturer’s name, car’s model, first registration date, date of purchase, RTO address, and so on ready with you.

How do I renew my expired car insurance policy?

If your car insurance policy has expired, get in touch with us and get it renewed as soon as you can. This is to avoid any high penalties you might possibly incur upon renewing it after a certain period of delay.

When renewing your car insurance policy, make sure to keep documents with details regarding the manufacturer’s name, car’s model, first registration date, date of purchase, RTO address, and so on ready with you.

What happens to my No Claim Bonus while renewing an expired policy?

The No Claim Bonus in your car insurance policy will not be valid under the following two scenarios:

  • If you do not renew your car insurance policy on time, the No Claim Bonus of your policy. will expire along with it. You need to keep in mind to renew the car insurance policy within 90 days of it getting expired.

  • If you make a claim using your car insurance policy, then you No Claim Bonus policy becomes invalid.