Best Online Motor Insurance Policy by IFFCO TOKIO
IFFCO Tokio offers the best motor vehicle insurance policy to protect vehicles from every possible risk. To protect you from any unforeseen situations that can occur at any time, IFFCO Tokio — one of the leading insurance policy companies in India — offers you a wide range of motor insurance policies that will not only protect your tangible asset, but will safeguard it throughout from unexpected occasions as well.
Designed to fully assist customers, IFFCO Tokio provides unsurpassed motor insurance policy coverage that protects your motor vehicle from every risk and also gives you a complete ‘on-road protection’ facility. This online vehicle insurance covers all liabilities which may arise due to an injury or death of a third-party or damage to the third-party property, while driving. In other words, it has everything that you come to expect from the best four-wheeler insurance in the market.
What Motor Insurance Policy covers?
IFFCO Tokio's motor insurance comes with total indemnity benefits, providing you motor insurance coverage against riots, fire, theft, explosion, strikes, terrorist activities, and malicious deeds. This motor insurance also protects you from the acts of God like earthquakes, cyclones, flood, tsunami, etc
Apart from these, IFFCO Tokio's motor insurance policy gives you extra benefits in various troublesome situations such as (while driving) internal breakdown, battery discharge, tyre puncture, loss of keys, etc. All the plans under our online vehicle insurance products have been designed to serve the investors with a remote network plan all across India.
Benefits of Motor Insurance:
Get Motor Insurance Policy Online
As we endeavor to provide you valuable coverage with hi-end facilities, the online motor insurance policy solutions at our website come withhassle-free and user friendly fields that not only give you easy claim domains but convenient settlement procedures. Going digital has been the prime focus of IFFCO Tokio, and our online domain strives to delivers you the same, with easy availability of all our motor insurance products online.
Now you can enroll-in at any time, from anywhere and compare four wheeler Motor insurance plans that fit your requirements. The motor insurance policy at our end sustains your freedom by compensating your major claims in a stress-free and cost-effective way which can otherwise be very expensive and arduous.
Your motor is one of your most important possessions. Give it the care and fortification it deserves with IFFCO Tokio motor insurance policy. So, stay assured by buying vehicle insurance online at IFFCO Tokio!
Why is Motor Vehicle Insurance Mandatory in India?
Motor vehicle insurance is mandatory in India for a number of reasons. It becomes all the more important considering the high number of motor vehicle accidents that take place in India, and the mounting number of accidents is a figure to be concerned about.
The government has tried to do its part by revisiting existing laws and passing a revised bill on vehicles in 2017 making insurance coverage mandatory and non-negotiable. In fact, when it comes to the enforcement of motor vehicles rules and the push for vehicle owners to carry their motor vehicle insurance policies in vehicles are stricter now, and failing to adhere to themcan lead to significant fines.
For this reason, all vehicle owners are urged to carry their motor vehicle insurance documents with them at all times. However, the question that most people often wonder about is why motor insurance mandatory, which often goes unanswered.
What is the Motor Vehicles Act?
In India, as per the Motor Vehicles Act, it is mandatory that all vehicles that operate in any public space must have a motor vehicle insurance cover. Policyholders must have at least ‘third party liability’ motor insurance cover even when opting for the basic insurance plans.
The third party cover is essential in the event of an accident caused by the vehicle owner or another person driving the other vehicle. It is important to note that the vehicle insurance cover may or may not cover damages caused by the owner.
What Does the Motor Vehicles Act State?
The Indian Parliament amended the Motor Vehicles Act of 1988 that reviewed all aspects concerning transport vehicles, and was implemented on 1st July, 1989. The act lists out the various provisions related to licenses of conductors, licenses of drivers, registration of vehicles, controlling vehicles using permits, traffic rules, liability, offences, insurance covers, and penalties.
Why is the Motor Vehicle Insurance Important?
Most people often select the cheapest motor vehicle insurance only to regret their decision later on when their motor vehicle has been stolen, or is involved in an accident, or while selling the vehicle. Like any other form of insurance, when you buy motor insurance online or offline,it ensures that your interests as the policyholder are protected in a variety of situations.
Some of the major reasons why one must invest in motor insurance online and also ensure timely motor insurance renewal, include:
Pays for damages
Buying motor insurance online is cheaper
Pays for hospitalization
Family receives compensation in event of death
Pay premiums and enjoy coverage at all times
Each of these reasons has been discussed in detail in the following sections.
Motor Insurance Reduces Liability
Since signing up for third-party motor insurance is mandatory in India, it automatically safeguards vehicle owners from accidents caused by the policyholder. For instance, if an accident caused by the policyholder causes damage to another person’s vehicle or causes injury to the person, then the treatment saves the policyholder from legal repercussions and pay for the treatment.
Motor Vehicle Insurance Pays for Damages
Another benefit extended by motor vehicle insurance is that it pays for damages since accidental repairs are quite expensive especially when the damage is caused by someone else. However, this insurance cover helps policyholders breathe easy as the insurer foots the bill in such cases and it won’t burn a big hole in the pocket causing an unexpected expense.
Also, motor insurance online helps policyholders file a request from the comfort of their homes. Additionally, the entire process is more transparent, quick, and needless to say more efficient as well.
Purchasing Vehicle Insurance Online is Cheaper
Also, policyholders can save money by buying motor insurance online as that saves a lot of operational costs.Insurance companies pass on this benefit to customers in the form of highly competitive premiums, making it beneficial for both the parties with online motor insurance in India.
Motor Insurance Pays for Hospitalization
It is almost impossible to prevent accidents but some people are busy to get away from an accident without any major injuries. However, others might not be as lucky and would have to be hospitalized with fractures or internal injuries.
Investing in a good motor vehicle insurance plan can help policyholders save a lot of money when hospitalized. A comprehensive motor vehicle insurance plan can help policyholders stay worry free.
Motor Insurance Provides Compensation to Family in the Event of Death
The demise of the policyholder caused by a road accident can create a big burden for the surviving family. However, motor insurance policies have riders where financial assistance is extended to the policyholder’s family.
Pay Premiums and Enjoy Coverage at All Times Using Motor Insurance Calculator
Motor insurance policyholders can use a Motor Insurance Calculator to check how much premium they need to pay to enjoy comprehensive coverage. Also, it is best to use a motor insurance calculator to set aside some money every month which can be paid towards the premium, particularly for salaried individuals. This comes of great help especially during vehicle insurance renewal.
What are the Benefits of Buying Vehicle Insurance Online?
A section of people are skeptical about purchasing vehicle insurance online owing to concerns of reliability, authenticity and companies which are not located in their city, all of which are genuine grounds for concern. However, all these concerns can be put to rest since established insurance companies are pushing online insurance;that way, it is easier for the insurer as well as the policy holder.
At the same time, insurance companies are addressing the key concerns by providing better customer support and assistance online than ever before. Slowly, these companies are pushing paperless policies and increasing incentives for clients that avail their services online rather than visiting physical stores.
In the age of internet, it makes sense buying vehicle insurance online as it offers a number of benefits. Some of the benefits of purchasing vehicle insurance online that most people might overlook are as follows:
All documents are saved in one place
Easy to receive and read reviews of other policyholders
Instant issuance of policy
Endorsement in policy is easy
Each of these points has been discussed in detail in the following sections.
All Documents are saved in One Place
One of the foremost benefits of applying for vehicle insurance online is that all documents are saved in one place. It might not seem like a big deal but it helps policyholders maintain and review a policy at any time they require, along with what all the policy entails.
At times of emergency, often people struggle finding the right paperwork to file a claim and do not have enough time to search for it. In the worst case scenario, when the policy details are misplaced and are required urgently, it creates a lot of headache for the policyholder.Vehicle insurance online helps bypass these issues completely.
Easy to Receive and Read Reviews of Other Policyholders
A common concern shared by motor insurance policyholders is that there are so many options for them to choose from, thus making the selection process difficult. However, when it comes to a vehicle insurance policy online, they can find reviews posted by other policyholders and make an informed decision of the policy that would best suit their needs.
Also, policyholders can do their bit by posting a review of the motor insurance online policy so that others can benefits from the feedback shared.
Motor Insurance Online Policies are Instant
When policyholders opt to buy motor insurance online policies, they are able to activate the policy instantly unlike buying policies offline that takes time to get processed. As long as all the correct details are provided, the policy is ready to go without any unnecessary delays from the insurer’s end.
Endorsement Policy is Easy
A key feature of vehicle insurance online is that the endorsement policy is simplified and easy. It means that if policyholders would like to make changes in the policy documents, then they would have to fill up an endorsement form available on the company website.
After the endorsement form is filled up and submitted to the insurer, the request will be sanctioned within no time. When you buy motor insurance online, it helps policyholders save time, money, energy, and effort while all these requests are handled online, making it more customer friendly.
Vehicle Insurance Online Pushes Paperless Transactions
Online motor insurance plans help save the environment since these transactions are paperless. The new, streamlined process to purchase vehicle insurance online is quite simplified, thus making it easier for customers to register and avail these services quickly.
Even the renewal process becomes simpler in vehicle insurance online, and policyholders can track their account and other details by logging into their account.
Is it Safe to Buy Motor Insurance Online?
Security is a major concern for most people these days when it comes to making online transactions. The good news is that it is safe to buy motor insurance online.
However, to be on the safe side, it is always best to read all the features offered before purchasing an insurance plan online. Also, as a good practice, read motor insurance reviews of other policyholders and their take on the policy as well as their experience using online insurance platform.
What are the Red Flags to Look for While Purchasing Motor Vehicle Insurance Online?
There are a few red flags that policyholders should look at before purchasing motor vehicle insurance online. Some of the points to remember include:
Cross check with insurer
Always ask for a receipt
Check signature on policy
Counterfeit offers are quite common phishing scams where the policyholder can be tricked into disclosing bank details. In order to ascertain the authenticity of the communication, it is best to get in touch with the insurer and clarify whether the offer is genuine or not.
Another aspect that one should be mindful about is whether the information on the website is accurate or not. Always cross check the information if there are discrepancies and only then purchase a policy or renew it.
As a good practice, always ask for a receipt for any transaction made and keep a record of it, just to be on the safe side. Additionally, always check the signature and never allow someone else to sign on your behalf.
Keeping these aspects in mindwill help policyholders protect themselves from fraud and deter potential attempts of data or identity theft.
What are the Types of Motor Vehicle Insurance Available in India?
Motor vehicle owners in India can select between different types of motor vehicle insurance available here. The foremost objective is to protect vehicle owners against damage and accidents.
Motor insurance policies online are based on coverage refer to the type of insurance plan selected, which can be categorized into the following:
Third-party Liability Insurance
Each of the categories has been discussed in detail in the following sections.
A comprehensive vehicle insurance plan includes third-party liability as well as any expense incurred by the policyholder due to theft or accident of the vehicle. In case the policyholder is injured, the personal accident cover entitles the policyholder to claim compensation due to death or injury due to accident.
The benefit of taking on a comprehensive motor insurance policy is that the add-on plans or riders extend added benefits to the policyholder without taking out multiple policies. Therefore, this type of insurance plan extends security and protection to the policyholder for almost any situation that they might encounter.
Benefits of Comprehensive Motor Insurance
Some of the benefits of selecting a comprehensive motor insurance in India include:
Financial security to cover emergencies and peace of mind
Covers lawsuits that includes legal fees against policyholder due to the accident
Comprehensive coverage that protects policyholder and vehicle
Damages to vehicle caused by policyholder is covered by this insurance cover
If policyholder is at fault for an accident then a claim can be made for incurred loss
These are some of the many benefits that a comprehensive plan offers to policyholders.
What is covered under a Comprehensive Insurance Plan?
A comprehensive vehicle insurance plan, as the name suggests, provides wide coverage of every imaginable aspect related to the vehicle insured and the interests of the policyholder. However, it is ideal to know the different aspects that are covered under these insurance plans.
Some of the different aspects that are covered by comprehensive insurance include:
Damage caused by fire, severe weather, and natural disasters
Damage caused by a third party or animals
Damage caused to vehicle due to civil disturbances like riots
Theft and vandalism
What a Comprehensive Insurance Plan Doesn’t Cover
However, policyholders must make a note that comprehensive plans do not cover the vehicle or policyholder in following instances:
Damage caused to vehicle due to drunken driving or the use of drugs
Damage caused to vehicle when the person driving does not have a valid driver’s license
Damage caused to vehicle due to mutiny or war
Mechanical or electrical breakdown, wear and tear of the vehicle
A comprehensive insurance plan offers third party cover as well, making it quite exhaustive.To make it financially more viable, policy buyers can opt for monthly premium payments,allowing them to have a vehicle insurance cover which protects their interestby selecting this type of motor insurance policy.
Third-Party Liability Insurance
Third-party liability insurance is mandatory for every vehicle owner in India, by law. Essentially, these insurance plans protect the policyholder’s interests from damages caused to property or an individual by the policyholder.
It can be said that a third-party cover helps lower risk and liability of the policyholder in a number of situations. Also, this cover is recommended for inexpensive and old vehicles that are cheaper to repair.
Understanding How Third-Party Insurance Cover Works
The first step in understanding how a third-party insurance cover works is to make a note of the terminologies used. Some of the commonly used term associated with third-party cover includes:
First party: Policyholder or person who has purchased insurance policy
Second party: Insurer or insurance company
Third party: Claimant or person who raises a claim for damages caused by first party
If the policyholder is involved an accident with a third-party, then the policyholder is liable to pay for damages or injuries caused. When an accident takes place, the policyholder must inform the insurance company at the earliest and apprise them of the situation.
Also, it is essential that information is gathered regarding the accident and provided to the insurer with the following details:
Description of accident along with date and time
Details of insurance and policyholders present during the accident
Describe injuries sustained by driver, passengers, and/or to property or vehicle damaged
Details of witnesses
Weather and visibility condition at time of accident
Photographs of evidence collected from accident site
In case the police enquire, furnish details of the insurance company and make a note of the First Information Report (FIR) number, if applicable. Additionally, if the accident was not due to the policyholder, then the claimant can raise a claim for cost of hiring a motor vehicle, repair costs, and injury compensation as per the conditions stated in the insurance policy document.
What does a Third-Party Insurance Plan Cover?
Third-party insurance plan extends coverage to policyholders in the following scenarios:
Damage caused by another vehicle (third-party)
Damage caused to another vehicle
Injuries caused to people by policyholder during an accident
Third-party cover is a must since the repair costs are pretty high these days. With this cover, the insured stays covered in instances where he is liable to pay for the damage caused to a third party and his/her vehicle.
What is not covered in Third-Party Insurance Plans?
There are a few scenarios where third-party insurance plan do not provide coverage:
Costs of damage caused to vehicles or belongings inside vehicle due to accident
Loss incurred if belongings inside the vehicle’s cabin are destroyed or stolen
Coverage of costs due to damage to own vehicle
Coverage for injuries caused during accident
Therefore, before making a claim, policyholders should re-read the insurance policy document to check whether a claim will be accepted or not.
What is the Difference between Comprehensive Motor Insurance and Third-party Insurance?
The major difference between comprehensive motor insurance and third-party insurance is that a comprehensive plan includes third-party insurance and other riders. However, a third-party motor insurance cover includes only the basics.
Additionally, in the event of an accident, a comprehensive plan cover helpsout the policyholders with third-party liability as well as losses due to damage or injury. As per the Motor Vehicles Act, it is mandatory for all vehicle owners to have at least a third-party insurance cover.
What are the Types of Motor Insurance Policies based on Purpose?
Based the on purpose of use,one can go for commercial or private vehicle insurance. The main reason for this distinction is because there are situations that need to be taken into consideration for each of the two cases.
Private Motor Vehicle Insurance
As the name suggests, this type of motor vehicle insuranceis intended for private vehicle owners. Vehicle owners can select from various insurance policies ranging from comprehensive plans to the standard third-party insurance plans.
Some of the basic benefits extended by these plans include coverage for vehicle in case of accident or injury caused to a third party. These policies can be supplemented by adding riders as per the requirements of the policyholder.
Commercial Motor Vehicle Insurance
Commercial motor vehicles insurance helps businesses protect the companies interests from damages or losses caused due to various reasons. For instance, accident cover and third-party insurance are the most common insurance covers that commercial vehicles subscribe to.
Businesses can insure their trucks, buses, taxis or fleet of vehicles under an umbrella commercial insurance instead of purchasing individual schemes for each vehicle. Additionally, there are various options available like policies where the name of the driver is specified in the policy.
Also, there are any driver policies that businesses can select from as long as the driver has a valid driver’s license. Businesses can set age limits on the policy to avoid inexperienced drivers and preventing any mishaps.
Some of the commercial motor vehicle insurance plans include:
Named driver policy
Any driver policy
Third-party, theft and fire
Named Driver Policy
The benefit of investing in named driver motor insurance policy is that the policy is in the name of the person driving the vehicle the most. To make this plan more flexible, other names can be added to the policy as well at a nominal fee.
It must be noted that the benefits extended to additional drivers will differ from that of the main listed driver. Also, adding another driver helps reduce the premium that the business has to pay.
Another aspect that businesses need to keep in mind is that the main and additional drivers must be informed about the insurance cover.
Any Driver Policy
Another form of commercial insurance is any driver policy. This is an ideal choice for businesses that have multiple vehicles and several drivers that keep rotating routes or vehicles.
Since a specific name is not mentioned in the policy, each driver is entitled to the same benefits and protections as the other. Additionally, businesses need not worry about taking a new insurance policy for new drivers or cancel ones for those who have left the organization.
Fleet insurance is the best option for businesses with multiple vehicles. Some of the benefits extended under this insurance plan include:
Covers medical expenses due to accident
Comprehensive coverage for legal issues
What are the IRDA Guidelines Specifically for Motor Insurance Coverage?
IRDA or Insurance Regulatory and Development Authority of India formulated specific guidelines to regulate the policies that general insurance companies are offering customers. Since vehicle insurance is mandatory by law there are several players in the sector and for this reason these regulations need to be adhered to.
Motor insurance coverage online includes car insurance, two-wheeler insurance, and commercial vehicle insurance just to name a few. After the policyholder successfully purchases an insurance policy a certificate will be handed over to the policyholder.
Coverage Provided Under the Umbrella of Motor Insurance
The term motor insurance in India is an umbrella term that covers a number of scenarios or events. Some of the covered scenarios include:
If damage is caused to the vehicle due to any of the above events then the insurance company will pay for the damages incurred.
Exclusions under Online Motor Insurance Policy
The following events or scenarios are excluded for motor insurance online policy:
A person driving without valid license
A person driving under the influence of alcohol or drugs
An accident that takes place outside the geographical area mentioned in the policy
Electrical or mechanical breakdowns
When insured vehicle is used for unlawful activities
What is the tenure of Motor Insurance in India?
Most motor insurance online policies are valid for a year and it will be up for renewal ahead of the due date. Note that a grace period is extended to policyholders to renew their policies or opt for a new one, as per their needs and requirements.
During the period when the insurance policy is not active or when it has lapsed then the insurance company cannot be held liable to pay for damages during that period. Also, if renewals are not completed within 90 days then the insurer might conduct a vehicle inspection before renewing the policy and as a result could end up losing the no-claim bonus due to them.
What are the Approved Own Damage Premium Discounts Available?
The own damage premium discounts available to policyholders with:
Anti-theft devices authorized for use by ARAI
Members of Automobile Association of India
Own certified vintage cars certified by Vintage and Classic Car Club of India
Concessions for vehicles with modifications for persons with disability
Those who choose voluntary deductibles
These are some of the benefits extended to applicable policyholders.
Documents to be Kept in Vehicle Always
There are certain documents that must alwaysbe carried at the time of driving. The documents are as follows:
Original of driving license
Pollution under control certificate
Original of registration certificate
Ensure that all these documents are always kept in the vehicle or it could lead to a fine or arrest depending on the situation.
Documents to be Submitted when Motor Insurance Claim is Made
The documents that need to be submitted when a claim online is being made.These include:
Filled-up claim form
Original copy of estimate of loss
Original repair invoice
What Are Add-On Covers or Riders?
Add-on covers or riders can be purchased by policyholders after paying a certain amount of premium.Such add-on covers are not always included in comprehensive policies. Some of the popular forms of add-on coverage for motor vehicle insurance include:
Roadside assistance cover
Electronic and electrical circuit cover
No claim bonus cover
Zero depreciation cover
Key replacement cover
Each of these add-on covers have been discussed in the following sections.
Roadside Assistance Cover
Roadside assistance cover is an excellent option in case of emergencies like battery issues, flat tyres, or running on an empty fuel tank. The policyholder can call the insurance company which will provide logistical support by providing pick up and repair of the vehicle.
This is particularly helpful when policyholders are travelling long-distance and are unable to get any help in a remote location. Other benefits extended by this rider include fuel assistance, accommodation assistance, and even proving a taxi to the policyholder to reach the destination.
Electronic and Electrical Circuit Cover
Most insurance policies do not cover electronic and electrical circuit covers, but riders are available. For instance, a comprehensive vehicle insurance plan need not necessarily cover electrical breakdowns that are non-accidental in nature, but adding this rider covers policyholders to seek a claim in such scenarios.
This rider is recommended for expensive motor vehicles as the repair costs are very high as well. Additionally, it is recommended by vehicles that are used off-road as well.
No Claim Bonus Cover
No claim bonus covers are popularly referred to as NCB covers. Basically, this rider is a reward that policyholders can claim if they have not filed any claims through the entire policy period,which is made available in the form ofa significant cut in the premium to be paid the following year.
It must be noted that in the year that the policyholder received the NCB, he or she stands to lose a part of the bonus for the year. As a result, the amount of the discounted premium will be raised.
Zero Depreciation Cover
Another type of add-on cover that is quite popular is zero depreciation cover. The policy ensures that policyholders receive the entire amount of the parts replaced due to accident.
However, policyholders should make a note that this rider is applicable only for vehicles that are less than ten years in use from the time of purchase.
Key Replacement Cover
Every vehicle owner at one point in time or the other would have misplaced their keys. For this reason, this add-on cover provides reimbursement in case the key is misplaced and a replacement has to be made.
What are some of the Most Important Terms Associated with Motor Vehicle Insurance?
The process of selecting the perfect motor vehicle insurance plan can be a tedious task. However, a common problem that most people face while purchasing any type of motor insurance online is the technical jargon and terminology.
As a result, potential vehicle insurance buyers are confused and might not get what they are looking for. This problem can be put to rest by stating some of the important terms associated with this type of insurance. These include:
Insured declared value
Personal accident cover
No claim bonus
Each of these terms has been discussed in detail in the following sections.
The person whose name in which the motor insurance policy has been taken or the group that has taken up the policy is referred to as the policyholder. Usually, the policyholder is the main beneficiary of the insurance policy.
Also, the policyholder can be a business or other entity. Note that the policy has two parties involved - the policyholder and the insurance company, or insurer.
A representative is referred to as the insurance agent or salesperson who sells insurance policies on behalf of the insurer or insurance company. Also, a broker is a person who is a representative who advises clients on which insurance policy to take.
The policy period begins from the day the insurance policy has been taken out by the policyholder. The period that extends from the first day of the policy to the last date before expiration is referred to as the policy period.
Motor vehicle insurance premium is the amount you pay to keep your motor vehicle covered against fires, theft, accidents, and other problems. As a policyholder,you have to pay a fixed policy amount, and on part of the insurance company, they provide relief to policyholders against losses.
Insured Declared Value
The term insured declared value or IDV is often used while discussing motor insurance online plans. IDV refers to the maximum amount that the policyholder is eligible to receive from the insurer.
The IDV is calculated based on the vehicle’s current market value with depreciation factored in in the valuation. In case the IDV is less, then the policyholder has to pay a premium that is lower.
However, it must be noted that the pay-out that policyholders will receive will be lower at the time of filing a claim. Therefore, one must pay attention to the IDV fixed at the time the policy is being drawn up by the insurer.
Another important term related to motor insurance in India is deductibles. The term deductible refers to an amount of money that is deducted from the claim amount that is borne by a policyholder.
Deductibles can help reduce premium amount payable by the policyholder. There are two types of deductibles:
Voluntary: The policyholder can select a percentage to be deducted.
Compulsory: The percentage to be deducted is fixed by the insurer and the policyholder has to pay the claim amount.
Before signing up for deductibles, one must be sure to pay the claim amount on time.
Cashless garages refer to a network of garages where the policyholder need not pay cash at the time of service. However, the drawback is that the service is limited to only garages that the insurer has a partnership with.
Personal Accident Cover
Personal Accident Cover refers to insurance cover meant for the person driving the vehicle. It is particularly helpful in case the policyholder meets with an accident and is hospitalized up to a certain limit.
No Claim Bonus
Another commonly used term associated with motor vehicle insurance is no claim bonus. It refers to a bonus or discount given to the policyholder if no claims have been made that year.
It is a way in which the insurer rewards the policyholder for driving safe. Additionally, when the no-claim bonus gets accumulated, then insurers give policyholders a significant discount for the payable premium up to a limit of 50% (which accumulates with every claim-free year).
Add-ons or riders offered by motor insurance providers can be added to a comprehensive or an existing insurance plan. There are several types of add-ons that are available,including zero depreciation cover, personal accident cover, key replacement cover, and roadside assistance just to name a few.
What Are The Other Terms Associated with Motor Insurance?
There are a few more important terms associated with motor insurance in India that one should know about.These include:
Own damage premium
Certificate of insurance
Third-party motor insurance online is very popular, and it covers youagainst financial liability in the event of physical injury, death, or damage caused to a third party. The term ‘third party’ refers to someone other than the insurance company and the policy holder.
By law, it is mandatory that all vehicle owners have some or the other form of third party insurance. Otherwise, it is punishable by law when one drives a vehicle without a valid insurance policy.
Zero Depreciation Cover
Another term often used when it comes to vehicle insurance online is zero depreciation cover. This add-on cover helps policyholders from the loss on the value of the vehicle over a period of time.
In simple terms, this cover helps the policyholder claim a higher amount for repairs or replacements of parts, which might not be otherwise a part of the insurance cover. However, adding this cover will lead to an increase in the premium amount as well.
Own Damage Premium
The term ‘own damage premium’ refers to the premium that policyholders pay that form a part of the total insurance premium. It protects policyholders from damage caused by circumstances that are out of the control of the policyholder, like natural disasters.
Collision coverage is another add-on plan available to policyholders that covers damage caused to the motor vehicle due to a collision with an object or another vehicle. Often this coverage is needed when one applies for a vehicle loan.
Another form of insurance is liability coverage that covers medical costs for the most part. It is divided into three parts based on:
Maximum insurance cover amount paid to individual
Cover applicable to all individuals
Covers damages caused to property or another motor vehicle due to accident
The term lapse refers to the policy termination due to non-payment of the premium within the stipulated time period. While reviving a policy, make sure you check the tentative premium using a motor insurance calculator.
Certificate of Insurance
As per the Motor Vehicle Act, it is mandatory that motor vehicle owners possess a Certificate of Insurance from an insurance company. The policy needs to satisfy all the required stated under the act and must be in the vehicle at all times.
The term ‘exclusions’ refers to the circumstances which are not covered by the vehicle insurance policy. Also, if a claim is raised, it cannot be passed by the insurance company since it is not part of the terms and conditions as agreed upon by both parties as mentioned in the policy document.
The term ‘market value’ refers to the value of the vehicle in the market if it were to be sold on that day.
What are the Aspects that Need to Be Considered While Buying Motor Insurance in India?
Since there are plenty of vehicle insurance policies to choose from, it does not make the choice an easy one, especially for people who are not familiar with insurance features and policies. However, here are a few aspects that all vehicle owners must consider while selecting, which are as follows:
Decide on the type of motor insurance plan to buy
Evaluate claim track record of the insurer
Understand how vehicle premium is calculated
Flexibility and convenience
Each of these aspects has been discussed in the following sections.
Decide the Type of Motor Insurance Plan to Select
As stated before, there are two types of motor insurance plans available in India,including comprehensive insurance and third party liability insurance.
Comprehensive motor insurance plans in India protect policyholders financially if the insured vehicle gets stolen or damaged due to an accident or unexpected circumstances like earthquakes and floods.
Third-party liability plans are mandatory in India, and cover the policyholders from accidental injury or death due to accident or damage to the vehicle.
For expensive vehicles, it is best to select comprehensive motor insurance plans as those cover more bases and extend more protection to you and your vehicle. However, for those who have specific needs, a third-party vehicle insurance plan can suffice.
Evaluate the Claim Track Record of the Insurer
Another aspect that one should look into before purchasing a motor vehicle insurance plan online is the claim track record of the insurer. Always select insurers that have a low rate of grievances with a settlement rate of at least 90%.
The track record is an indicator of the type of customer care support and transparency from the insurer’s side. It will also help to read reviews about the insurer, clear queries that one has about the policy, and only then finalize the deal for the vehicle insurance cover.
Understand How Vehicle Premium is Calculated
It is important that potential policyholders must learn how to calculate the premium for the policy that they want to purchase especially while buying motor vehicle insurance online. Online vehicle insurance premium calculators is available free of cost on our website that can help one ascertain how much premium they have to pay.
Flexibility and Convenience
Another important aspect that one needs to keep in mind is flexibility and convenience extended to the policyholder. For one, online motor insurance policies are widely available these days, and can be purchased online from the comfort of one’s home.
The paperwork involved in online motor insurance policies is streamlined, and hardly takes any time to complete the registration process. Also, policyholders can pay their premiums online and need to worry about visiting the insurer’s office to get all the paperwork done.
Besides these, make it a point to read motor insurance reviews of the company you are planning to choose, as that too plays a huge role while buying motor insurance online.
Additional Pointers to Remember While Purchasing Motor Insurance in India
There are a few more pointers that one should keep in mind, especially the first time you buy motor insurance online. Some of the aspects that can maximize benefits of buying a vehicle insurance plan include the following:
Know what third-party insurance covers
Always select additional benefits
Never bypass accident insurance covers
Always opt for comprehensive covers or plans that offer wide coverage
Evaluate dealer insurance plans in-depth before opting for it
Each of these points has been discussed in the following sections.
Know What Third-Party Insurance Covers
Third-party insurance plans cover the expenses incurred due to damages caused by a third-party vehicle, property, or person. An individual who is not the policyholder or the insurer is referred to as the third party.
A third-party insurance cover protects the person driving the vehicle which can be the policyholder, family member, driver, or friend. This vehicle insurance plan includes damages caused by a third-party, including disability, death, or injury.
As a good practice, ask the insurer what the third-party insurance, which you want to sign up for,covers. This way, one can be certain of the terms and conditions extended by this motor insurance coverage plan.
Always Select Additional Benefits
Policyholders should always keep in mind the big picture, and factor in the chances of getting involved in an accident. For this reason, it is always a good idea to select additional benefits based on one’s risk profile that will help reduce the likelihood of accidents.
For instance, if an individual likes to take long distance drives at night, then selecting an add-on like roadside assistance plan is a smart thing to do. This way, in case of any issues while traveling during odd hours, the insurance company will be able to provide assistance and ensure the policyholder’s safety.
Never Bypass Accident Insurance Covers
Another important aspect that one should always keep in mind is that an accident insurance cover is a must, and is non-negotiable. It is a reasonable option to pay a premium for this coverage plan that protects the policyholder as well as passengers in the event that an accident takes place.
Depending on the coverage plan selected, in the unfortunate event of an accident taking place, the medical bills and other charges will be covered by the insurance company. Also, in case the accident leads to disability or death, based on the coverage of the plan and its provisions, compensation will be awarded to the next of kin of the policyholder.
Always Opt for Comprehensive Covers or Plans that Offer Wide Coverage
Some people believe that less is more, but this is not the case when it comes to buying motor insurance plans. This is because a comprehensive plan can make all the difference in the world,like having a cashless hospitalization during a stressful stay at the hospital while trying to foot the medical bills because of a motor vehicle accident.
Selecting a comprehensive motor insurance plan helps avoid keeps you well-covered for such dilemmas, and the policyholder can have some peace of mind. Additionally, comprehensive plans protect policyholders from a wide variety of scenarios that include thefts, accidental fires etc.
Evaluate Dealer Insurance Plans In-depth before Opting for it
While buying vehicle insurance online, one should read the offer document carefully and make a note of all the minute details. It is important that the policyholder should be aware of all the details because at the time of making a claim, it shouldn’t take too much time.
Also, one mistake that people often make is that they rush into purchasing an insurance policy to regret it later since they overlooked some important provision. This leads to a lot of unnecessary trouble and misunderstanding between the policyholder and the insurer.
Therefore, make it a point to clarify all doubts related to the insurance policy before purchasing it. Also, it is always better to double check to be on the safe side.
Questions One Must Ask Insurer before Signing Up for Motor Insurance
There are a few essential questions that one must ask the insurance company before buyingmotor insurance online. Some of these questions include:
Coverage offered by motor insurance
Payment terms of insurance policy
Any deductibles to be paid
Each of these points has been discussed in the following sections.
Coverage Offered by Motor Insurance
The first thing that one should ask and clarify with the insurer is the coverage offered, particularly what is included and what is excluded from the motor insurance policy. There are so many insurance plans that one can choose from and it will be helpful to look at as many policies before selecting one.
Also, looking at different policies will help one understand what standard policies comprise of and what the premium amount will be like. It will also be helpful to understand how the premium is calculated so that you know what to expect in terms of premium at the time of buying, or during policy renewal.
Payment Terms of Insurance Policy
Another aspect that one should discuss with the insurer is the payment terms of the insurance plan. It is best to read motor insurance reviews and conduct a detailed study of what is being offered and for how much so that an informed choice can be made.
Revisit the options and whether the insurance policy is what one is in search of. Only when these aspects are taken into consideration should one purchase the insurance plan.
Any Deductibles to be Paid
Another question that one must ask the insurance company is whether any deductible has to be paid. Often people tend to miss out reading this clause and only find out when the payment has to be made.
For this reason, read the offer document carefully, and if in doubt, ask a friend or family member who is well-versed with insurance policies to take a look and take their feedback into account.
What is Motor Vehicle Insurance Premium?
Motor vehicle insurance is mandatory for vehicle owners in India. However, a premium has to be paid by the policyholder over a stipulated period of time as mentioned in the policy document. In simple terms, premium is the amount you pay to the insurance company, for which it promises you to indemnify against risk.
The particulars of the motor insurance premium are based on gender, age, years of experience of driving, records of accidents, or any violations made. For instance, a young individual with a history of accidents is more at risk of meeting with an accident and hence the premium charged by the insurer will be higher.
Also, policyholders have a provision where the insurance premium amount is reduced if they volunteer to increase the deductibles. When the premium is paid to the insurer, then the policyholder is protected in the following scenarios:
Liability: Legal responsibility for causing harm to a person or damaging property
Property: Event of theft or third-party causing damage to insured vehicle
Medical: Expenses incurred due to injury caused due to accident
These are a few aspects that are covered by motor vehicle insurance.
How is Motor Insurance Premium Calculated?
The next question that one will think about when it comes to vehicle insurance premium is how the premium amount is calculated. The policy documents have a number of sections that include special case, exclusions, as well as terms and conditions that one must go through and understand.
However, most people agree with the insurer on the premium amount set, but often fail to understand how the premium amount was calculated. Some of the factors that determine the premium to be paid by policyholders for motor vehicle insurance plans include:
Own damage cover
Personal Accident Cover
Personal accident cover is the component in the insurance policy premium that safeguards policyholders from accidents and mishaps that cause a disability. Disability coverage is an essential component in insurance plans as it is a probable outcome of any road traffic accident. Therefore, purchasing a personal accident cover becomes all the more important to protect yourself. It must be noted that the premium paid for this cover goes up when the insured sum increases as well.
Own Damage Cover
Own damage insurance cover is an option that is beneficial for policyholders. Earthquakes, storms, fires and accidents may cause damages to the policyholder's vehicle which are not always covered by a motor insurance plan you buy.
Ideally, it is best to invest in higher insurance declared value that helps increase the premium amount. However, policyholders should make a note that as the vehicle ages, the IDV decreases.
Third Party Cover
The reason why third-party liability vehicle insurance is mandatory in India is because it protects the insurer from any liability caused due to accidents. However, it must be noted that this cover does not include repair costs.
Therefore, one should select a policy that covers damages caused to own vehicle as well. Also, the premium to be paid by the policyholder is dependent on the motor vehicle’s capacity as defined by Insurance Regulatory Authority of India (IRDAI).
Policyholders should also invest in riders or add-on plans. The biggest advantage of opting for riders is that it helps protect the policyholder’s interests without spending a lot of money.
Roadside assistance is a popular rider that policyholders opt for, and it comes in handy particularly in situations where the policyholder is travelling in an unfamiliar area. Another popular rider is the no claim bonus where policyholders receive a substantial discount on the premium if no claims have been made during a policy year.
What is a Motor Vehicle Insurance Premium Calculator?
A cause of concern that many insurance policyholders face is calculating the insurance premium to be paid. However, to make this task simpler, one can use an online motor insurance calculator.
In order to calculate the premium of the online motor insurance with a calculator, the following aspects need to be taken into consideration:
Age of the motor vehicle
IDV or the insured declared value of the motor vehicle is nothing but an estimate made by the insurance company at the time you buy motor insurance in India. It is the maximum claim amount that the policyholder can raise a claim for in the event of theft or accident.
IDV rate changes over time considering depreciation. Also note that IDV is exclusively used for comprehensive insurance policies.
Cubic capacity or cc is the measurement of the size of the vehicle’s engine. Unlike IDV, the size of the engine remains constant and hence does not affect the calculation of the premium for vehicle insurance.
However, it must be noted that vehicles with higher engine capacity require a higher premium to be paid. The tariff rates are set and regulated by the Indian Motor Tariff Act.
Age of the motor vehicle
The age of the motor vehicle is an important determining factor when it comes to calculating motor insurance premiums online. The older the vehicle, the higher will be the depreciation on it.
How Can Motor Insurance Premium be reduced?
Since motor vehicle insurance plans are a must, policyholders should make the most of it, and get the maximum benefits extended by these policies. Some of the ways in which the premium amount can be reduced are as follows:
Not making claims for small amounts
Don’t Make Claims for Small Amounts
As a rule,policyholders should not make claims for small amounts of money that they can afford to pay out of pocket. By doing so, the policyholder is entitled to get perks extended by no-claim bonuses. If one compares the discounted premium rate, it is well worth the trade-off.
Another simple way to reduce the amount of premium to be paid towards buying motor insurance online is by increasing the deductibles. However, policyholders will truly be able to receive benefits only if they can afford paying the premium, or else it defeats the purpose of raising the deductibles.
Policyholders should keep in mind that the policy is in their name and not on the vehicle. The bonuses will keep accumulating and when policyholder wants to buy a new vehicle, these bonus points can be transferred.
Since information related to almost all the motor insurance policies are available online, one can check the premiums and compare them. Based on their requirements and budget, the most ideal motor insurance policy can be selected.
How to File a Motor Insurance Claim?
Another important aspect that policyholders must keep in mind is filing the motor insurance claim. Often, policyholders take it for granted that any claim raised by them will be cleared, but that is not the case.
In the event of an accident, the policyholder should first call the insurance company and inform them about the incident. Note that the location that the accident took place at does not matter as long as the insurer is in the country.
However, in the event where the vehicle has been stolen, then the insurance company must be informed once an FIR has been lodged. Following this, the insurance company will take care of the rest of the process.
To ensure that the policyholder’s claim gets resolved at the earliest, the following aspects need to be taken into consideration:
Details required to file a claim
Details of accident, if applicable, and supporting documents
Details Required when Filling a Claim
Always ensure that all the details required to file a claim are easily accessible by the policyholder, and fill in the application form carefully. Note that any missing details or inaccurate details might lead to the claim getting rejected because the insurance company doesn’t have all the required details to process the claim.
As a result, the insurer will get back to the policyholder for the required details, and reprocessing all the details will take more time. However, this can be avoided if all the details of the policyholder and the policy are furnished at the time of filing the claim include:
Policy number of vehicle insurance
Name of the policyholder or insured person
Name of the person driving the motor vehicle
Policyholder’s contact number
Apart from these details, the insurance company will require the policyholder to furnish the following details related to the accident:
Date and time of the accident
Location of loss
Model and make of vehicle
Brief description of the accident
Ensure that all these details are accurate to the best of one’s knowledge.
Details of Accident and Supporting Documents
In the event that an accident takes place, then the policyholder needs to make a note of the following details:
Note the license plate number of the other vehicle involved
Note down contact details and names of witnesses
Call toll free number of insurance company and note down claim number or claim reference number
In case of theft, inform insurance company and police followed by written intimation to insurer
Ask the insurance company’s agent to walk you through the process
Ensure that no repairs on the vehicle take place before the vehicle is checked by the insurance company
Note that if the claim is filed late or is delayed, then the insurer has grounds to reject the claim based on the contract signed between the policyholder and the insurance company. Additionally, the following supporting documents must be attached with the claim filed with the insurance company:
Signed claim form
Copy of driving license
Copy of registration of vehicle
Original estimate of repairs
Original payment receipt or invoice for repairs
Ensure that all these details are shared with the insurance company at the earliest.
Details of Theft and Supporting Documents
The process of filing a claim for theft of the vehicle is similar to that of an accident. However, there are a few details that need to be shared with the insurance company, which are as follows:
RC copy with original keys
Copy of original FIR
Copy of policy
Copy of driving license
Transfer papers from RTO signed with Form 28, Form 29, Form 30 and Form 35
No trace report is a must from police
A common mistake that policyholders commit is that they are not sure of what is meant by “proof of loss” and often do not document their expenses properly. The following section covers how policyholders can ensure that they are able to stay on top of all details, and furnish the documents required to file a motor insurance claim in India.
What is Proof of Loss? How to Document Expenses?
The insurance company will definitely ask policyholders to fill out a form and submit documents along with the claim, as mentioned in the previous section. Ensure that all the requisite details are shared with the insurer at the earliest.
It is helpful if all the expenses as a result of an accident or theft are documented in detail, as that will helpful to receive reimbursements as per the insurance policy’s terms and conditions. Some insurers offer cashless repairs for their vehicles,so before availing services from a garage, it is best to check with the insurance company first.
Filing a motor insurance claim in India might seem simple and straightforward, and it is, but policyholders need to be careful that all the details shared are accurate. Often, the vehicle insurance claim gets rejected because the policyholder panics and fails to follow protocol.
Why Do Motor Vehicle Insurance Claims Get Rejected?
Meeting with an accident can be a traumatic event, and can cause the policyholder or the person involved in the accident to be in a state of shock. As a result, they might act out of character and might cause them to panic unknowingly,further complicating matters.
Some of the things that policyholders need to keep in mind if an accident takes place are as follows:
Stay calm and don’t run away
Never drink and drive
Inform the police
Complete post-accident formalities quickly
Always review policy document
Accept final payment only when you are ready
Stay Calm and Don’t Run Away
When faced with a stressful situation, the first instinct that most people have is to run away even when they are not responsible for the accident. Running away or distancing oneself from the problem is not a solution , and mightmake it all the more complicated.
Try and stay calm and in control; it will be difficult, but it is important to do the best that one can during this situation. Ask the other party politely if they are ok, and call the police if they have not been informed already.
Next, it is important to seek medical assistance if required right away.
Never Drink and Drive
Always keep in mind that it is never a good idea to drink and drive or while under the influence of drugs. It not only illegal but puts the policyholder at risk alongwith other law abiding citizens.
Remember that insurance policy will not cover an accident where the driver was at fault for the accident because he or she was intoxicated. This in itself is a deterrent for those who are reckless when on the road.
Inform the Police
In all the commotion that that takes place, it might not seem like a good idea to involve the police, but it is a must. Also, if the other vehicle owners inform the police and decide on a settlement excluding you, it is not an ideal situation and is illegal.
It is a must to file an FIR in any case and ensure that your interests are represented well. Note that if the police has not been informed, or informed late, then the policyholder will be disqualified from being eligible to receive any returns.
Complete Post-Accident Formalities Quickly
Policyholders must ensure that all the post-accident formalities, like informing the insurer as well as the police,are completed within the stipulated timelines. Also, ensure that all the required documents are collected and that the details are sent to the insurance company while submitting the claim.
Always Review Policy Document
Always read the policy document again while filing a claim so that the policyholders are on the same page with the insurance company. Many a time policyholders fail to do so, and its results in avoidable disagreements with the insurance company, and the insurer are always there to help customers and serve customers in the best possible way.
Accept Final Payment Only When You Are Ready
Policyholders should accept the final payment when they are ready. A conundrum that policyholders face is when they are at the receiving end even if they are not responsible for the accident.
The following section addresses this question.
What if You Were Not Responsible for the Accident?
If meeting with an accident is not traumatic enough, spending sleepless nights trying to identify and locating the person who caused the accident can be scary. However, well-informed policyholders can avoid such situations by being informed about this, and handle this in a better manner.
Policyholders need to keep the following things in mind:
Gather information and collect evidence
Notify the right people
Seek help from insurer
Re-read the policy
Gather Information and Collect Evidence
Even if someone else causes an accident and informs his or her motor insurance company in India, don’t forget to inform your insurer. There are times when policyholders feel that they should let small accidents or incidents go unreported but it is not a good idea.
Always remember to collect the following information:
Name of the other driver
Name of the other driver’s insurance company and policy details
Statements and contacts of witnesses
Take photos of the accident site and vehicle
When the policyholder is actively taking interest and making note of all the details then you will have an advantage.
Notify the Right People
It is important that one informs their insurer about the accident along with the insurance company of the person who caused the accident. Remember facts and not opinions or deductions since the police will determine who was at fault.
Based on the information, the insurer will make an independent evaluation and evaluate the report submitted by the police. After taking these points into consideration, the insurer will take a call on the amount for final settlement.
Seek Help from Insurer
If all other attempts to receive compensation for damages from the driver at fault fail, then policyholders can raise a claim with their motor vehicle insurance company. This way the insurer will cover repair costs and one need not pay out of pocket for them.
Another aspect that most policyholders often overlook is listening to any advice people are willing to share. However, most of the helpful tips are not going to help.
This is because the advice is generic and not specific. What a policyholder must do is go back to the basics and re-read the policy document that the motor vehicle insurance company provided as it is the key to almost all the answers that the insurer is in search of.
Yes, it is as simple as going through the document to see what the policy covers and what it doesn’t. At the same time, it will give the policyholder a fair idea of what they are entitled to when it comes to claim reimbursement, as per the policy document.
Also, going through the policy document can bring clarity, and the policyholder can seek help the insurance company citing particular causes. This will help the insurer help the customer more effectively and efficiently.
What is Meant by Engine Protection Cover?
The engine is one of the most important components of a motor vehicle. For this reason, an engine protection cover helps policyholders save themselves from liability or costs incurred due to engine problems.
Basic motor insurance plans cover the costs incurred due to theft, total damage, or accident due to vandalism, terrorism, or natural disasters. This protective cover protects policyholders from spending money from their own pockets towards repairs.
What is Covered by Engine Protection Plans?
Needless to say, a vehicle won’t be of much good without a well-running engine. In the event of natural calamities like torrential rainfall and floods, the engine is the first thing that gets affected, which can get damaged and would require extensive repairs and replacements.
Also, this add-on cover helps repair a damaged motor vehicle, which for the most part is not covered by regular insurance plans. To understand the various provisions in detail, it is best to ask an insurer about this.
Why Should You Buy Engine Protection Plans?
Some of the reasons why it is a good idea to buy engine protection include:
Ideal for people living near a flood prone area or water body
Ideal for people with high end vehicles
Ideal for people who want to avoid financial risks
These are reasons enough to invest in an engine protection plan.
What Features are Included in an Engine Protection Add-On Policy?
Some of features included in engine protection policy include:
Damages caused by leaking lubricating oil
Damages caused because of gear box malfunction
Damages caused by ingression of water
Damage caused by hydrostatic lock
Also, each engine protection plan is different, and it is important that policyholders read the policy document carefully. If in doubt, ask the insurance agent to understand the fine details about the insurance plan.
What Features Are Not Included in an Engine Protection Add-On Policy?
Even though engine protection add-on policy offers several benefits, there are a few features that are not included in these policies. Some of the features that are not covered by this type of rider include:
Deliberate damages: Caused due to driving a motor vehicle that has a damaged bonnet due to which lubricating oil seeps into the engine or deliberately driving your vehicle on water-logged roads, causing severe damage.
Limited validity: Add-ons have a limited validity that has to be claimed in time.
Age of vehicle: The age of vehicle should not be more than 5 years.
How to Compare Different Insurance Policies?
Since there are so many motor insurance options to select from, comparing motor insurance policies can help one select the one that best suits the needs of the policyholder. The best way to do so would be to visit the insurance company’s website and make a note of the salient features of vehicle insurance onlinewhen comparing different policies on offer.
Another smart way to tackle this is by asking the motor insurance company for a free quote, and they will provide you with one. Additionally, check the premium amount payable, the riders, and the various options extended to policyholders.
However, most people often forget to take into account the exceptions, and hence the policy document should be read thoroughly and only then should it be signed. In case of any doubt, ask the insurer and clarify your doubts, and only then move ahead with the deal.
Important Points to Remember While Buying Motor Insurance
There are some common misconceptions that people have when it comes to motor vehicle insurance, and it negatively impacts the policy selected. Keep in mind the following points:
The cheapest policy is not the best one
Compare deductibles and premiums
Compare benefits of different coverage options
The cheapest Policy is Not the Best One
A common misconception that most people have is that the cheapest policy is good enough. However, this is not the case since each add-on cover, or rider, adds to the protection and comprehensive nature of an insurance policy.
Compare Deductibles and Premiums
Another aspect that one should compare is the deductibles and the premiums to be paid. Always, stick to your budget and don’t go overboard, but at the same time don’t opt-out of essential riders.
Compare Benefits of Different Coverage Options
Always compare the benefits offered for different coverage plans as this might help invest in a policy that will maximize benefits, that too without increasing the premium amount.
How to Renew Motor Insurance Policy?
The expiration date of an insurance plan begins to close in from the day it was purchased. However, when it comes to motor insurance renewal, it is all the more important because it is illegal to drive a vehicle without proper documentation and the insurance.
During the policy period, all the expenses and damages can be claimed, but if the deadline is crossed, it leaves the policyholder's vehicle uninsured. It also means that the policyholder will be unable to file any claims during this period, and any expense would have to be an out of pocket expense.
However, this situation can be avoided by timely renewal of vehicle insurance online. The steps involved in this process have been discussed in the following section.
Steps for Motor Insurance Renewal
If the motor insurance policy has expired, then the policyholder should follow these steps:
Contact insurance company
Select a policy or renew an existing one
If policy is being renewed, schedule a vehicle survey appointment
After vehicle inspection, buy a policy best suitable for your needs
All of this can be done online.
Why are Expired Motor Insurance Plans so Problematic?
If one does not renew motor insurance policy in time, it can become very problematic for a number of reasons. To begin with,any legal implication arising post the expiry of the policy can get the driver of the insured vehicle or policyholder into trouble with law enforcement officials, which is completely avoidable.
Apart from running into trouble, it can also result in fines, revoking one’s driving license or even a jail sentence, depending on the situation. Also, policyholders have no more lines of defense to rely on without a valid insurance plan, and any financial losses like repairs or replacement of parts, have to be paid by the policyholder as the insurer is not obligated to pay the bill as the contract is no longer valid.
What Documents Do You Need While Renewing Vehicle Insurance?
For vehicle insurance renewal of an expired insurance plan, the policyholder needs to keep the following documents at hand to ensure quick and smooth renewal process. The documents required are as follows:
Registration certificate with policy
Copy of expired insurance policy certificate
Address of RTO linked to vehicle
Details of the vehicle: model number, registration, company name
Keep these documents handy at the time of vehicle insurance renewal.
How Can You Renew Motor Insurance Online?
Since most insurance companies have gone digital, one can purchase or renew motor insurance online. This is one of the best strategies used by motor insurance companies to make vehicle insurance online renewal convenient by making the process easily accessible online, hassle free, and simple.
Now,the customers need not visit different motor insurance companies and decide which company to select since all these details are easily accessible online. Additionally, the customer can go through the different websites and the data available and decide on the motor insurance coverage that best suits their needs.
The following steps can be used to renew a motor insurance policy online:
Keep track of date of renewal of motor insurance policy
Login to the insurer’s website and click on ‘Policy Renewal’
Make online payment
Wait for acknowledgement
Process is complete
Keep Track of Date of Renewal of Motor Insurance Policy
Always make a note of the date when the policy is due to be renewed, and keep track of this. Set a reminder or mark it in the calendar - anything that will help you not miss the deadline for vehicle insurance renewal.
The benefit of renewing the policy online and in time or ahead of the expiration is that the policyholder can stay worry free till the next renewal. Also, the hassle created by missing the deadline can be avoided by doing so.
It is best to work smart rather than hard, and remembering to renew the insurance plan is smart work, so as to speak. The insurance company will do their bit by sending SMS and email about the nearing deadline to renew the policy if all else fails.
Login to the Insurer’s Website and Click on ‘Policy Renewal’
The next aspect that policyholders need to keep in mind is that while renewing the policy online, no paperwork is required. All that one needs to do is to visit the insurer’s website, login and click on ‘Policy Renewal’ to check vehicle insurance renewal details.
Note that there will be two tabs: “Existing customer,” and “New customer.” The policyholder needs to select the relevant option of the two choices.
Next, one needs to follow the instructions, fill out details required, and the insurer will process the information. If all the details provided are verified, then the policyholder can move to the next step of the process of vehicle insurance renewal.
Make Online Payment
The next step in the motor insurance renewal process is to make the online payment. In order to make the payment, debit card, credit card, and online banking options are made available to the customer.
Wait for Acknowledgement
Once the transaction is completed, the policyholder needs to wait for the acknowledgement that the payment went through. An acknowledgement will be displayed and an email confirming the renewal of motor insurance will be shared.
Process is Complete
Receipt of the acknowledgment is the last step, concluding the process of vehicle insurance renewal. And it is much easier for policyholders to renew their policy online these days.
How to Save Money while Renewing Motor Insurance?
Some of the simple ways to save on renewal of motor insurance in India include the following:
Read policy document
Renew before expiry
No claim bonus
Know the vehicle
Before undertaking motor insurance online renewal, check all the features on the existing policy first. This is because some of the points may not be applicable anymore, and it is best to have a policy that is up to date.
For example, if some complementary cover is being provided by the vehicle manufacturer, then one can skip this feature during motor insurance renewal. This way, the policyholder can skip paying for redundant or less relevant features, and the premium amount will come down.
Read Policy Document
Before reviewing the insurance policy, always read the policy document, particularly the fine print. Always cross check with the information given in the website as well for any updates prior to motor insurance renewal.
The website might mention some additions or discounts that the policyholder can avail. This way, they can, in some cases, renegotiate certain terms and conditions before signing the new insurance cover and save money in the process.
Renew Before Expiry
Another important thumb rule that must be followed for motor insurance renewal is that the policyholders must renew the policy before it expires. Renew a month or two ahead of the expiry date to be on the safe side.
For instance, if the rates for motor insurance in India are hiked, then purchasing the policy earlier can prove to be beneficial while keeping the premium down during motor insurance renewal.
No Claim Bonus
Policyholders who have not filed any claims are eligible to a no claim bonus from the insurer. This is something that most policyholders do not utilize to their advantage at the time of motor insurance online renewal.
Even if the policyholder is purchasing a new insurance policy, they will be in a position to transfer credits to their account. This is because the insurance policy is in the name of the policyholder.
As a result, the premium to be paid will be heavily discounted while the policyholder will receive all the benefits that were extended to them as before post motor insurance renewal.
Know the Vehicle
Another essential aspect that policyholders need to keep in mind is to know the vehicle well. The premium to be paid will be based on the vehicle inspection, and for this reason, the policyholder must be well aware of what to expect, and not get blindsided by revised coverage plan and premium rates at the time of renewal of motor insurance.
Also, it is best that policyholders have an idea about the motor vehicle’s depreciated value as this can be a starting point for negotiations. This way, the policyholder will be equipped with the information required to get a fair deal or request for amendments if the policy is not up to par.
It is always good to know the options available to make an informed decision for motor insurance renewal. Often, policyholders become complacent and don’t do their homework of comparing policies.
When they do realize that the policy is not what they really wanted, it is a little too late to make any changes because the policy is already in effect. Invest some time and understand, compare, and then arrive at an informed decision rather than pay more and regret this decision later on.
What are the Common Mistakes Made While Renewing Motor Insurance Policies?
There are a few common mistakes that people make when it comes to motor insurance renewal online. These include:
Selecting minimum coverage
Fail to compare quotes
Payments for premium are delayed
Selecting avoidable add-ons
Selecting Minimum Coverage
Going for the “less is more” approach is one of the most common mistakes people make when it comes to renewal of vehicle insurance online. It is because motor insurance is meant to serve as a backup plan if things go south due to theft of vehicle or an accident.
For this reason, it is mandatory by law for all vehicle owners to have third-party insurance plan. Policyholders must keep in mind the premium amount to be paid as well as repairs and other expenses related to the vehicle. Once policyholders work out the math, investing in a comprehensive motor vehicle insurance plan or even motor insurance renewal then seems like a good idea.
Fail to Compare Quotes
Another mistake that policyholders make is that they fail to compare quotes and they don’t have an idea about the current rates that are being charged or the coverage plans offered. While selecting an insurance policy might fulfil the minimum requirement by law,the policyholdersmiss out on the benefits they could have received by selecting a better insurance plan.
Also, most vehicle owners take for granted the fact that the terms and conditions or the perks associated with a particular cover remain the same. However, this is not true as the policy might change with time, and the policyholders neglect to review the condition of the vehicle as well since it plays an integral part in premium paid towards the policy.
Payments for Premium are Delayed
An aspect that policyholders often fail to realize is that delays in payment in the premium of an insurance policy could cause a number of problems. To begin with, any delay would reflect in the premium amount to be paid.
For this reason, policyholders should select a relevant coverage plan that covers all their needs. At the same time, ensure that the plan fits the budget as well or else it will mitigate any of the benefits that were offered before.
Selecting Avoidable Add-Ons
Policyholders sometimes go overboard by selecting add-ons that may notbe essential in their case. For instance, roadside assistance might not be required by someone who doesn't use the vehicle often.It is good to be cautious, but being over cautious can cost the policyholder anunnecessarily higher premium each year.
What are some of the Lesser Known Benefits of Offered by Motor Insurance Plans?
Often vehicle owners are not aware of all the benefits that insurance plans extend to them. Some of the lesser known benefits that are as follows:
Document free renewal
Insurance for accessories within the motor vehicle
Beyond accident cover
Around the clock spot assistance
Each of these points has been discussed in the following sections.
Document Free Renewal
The foremost benefit extended to policyholders is document free renewal. Yes, policyholders need not spend hours filling up lengthy documents that is cumbersome and time consuming, while renewing their insurance policy.
Another benefit extended to policyholders is that they can renew their policies online which is easily accessible, simple, and quick. These days, policyholders can make the payment online and completing the transaction takes a few minutes.
Motor Vehicle Accessories Insurance
Often, policyholders are unaware that riders can be added to their vehicle insurance, for a new policy as well as duringvehicle insurance renewal that can protect vehicle accessories. It will reflect on the premium but one might as well pay a little extra to get extra coverage.After all, these are small but periodic investments you make in your vehicle for a more comfortable and enjoyable driving experience.
Also, this investment during vehicle insurance renewalis a cost-effective option as compared to buying new accessories with an out of pocket investment in instances where there were break-ins.
Beyond Accident Cover
Apart from losses and damages as a result of accidents a vehicle insurance plan provides coverage to policyholders beyond that. For instance, these insurance covers extend protection when natural calamities strike or as a result of man-made disasters as well, underlining why timely vehicle insurance renewal is essential.
Investing in an insurance policy ensures that the policyholder is provided with accident shield. It means that compensation will be paid in case of death, injury, or total disability of the vehicle’s occupants.
Around the Clock Spot Assistance
Another lesser known benefit extended by vehicle insurance policies is around-the-clock spot assistance if the policyholder gets stranded during a journey. The insurance company helps coordinate services like towing, repairs, and alternate travel and accommodation arrangements for the policyholder.
How Can You Eliminate Motor Insurance Fraud?
Purchasing a new vehicle requires the vehicle owner to also buy a new insurance policy,the options for which are so many these days. A simple online search will reveal that there are several new insurance companies as well as established companies that are offering a wide variety of policies.
However, by keeping in mind a few simple tips, one can eliminate the possibility of purchasing a fake insurance policy. Before agreeing to sign on the dotted line, ensure to cross check the following details:
Read the insurance policy
Purchase the policy only through authorized channels
Keep in touch with insurance company
Always insist on self-signatures
Request for payment receipts
Read the Insurance Policy
The first thing that one must do before purchasing an insurance plan is to read the insurance policy thoroughly. It is the responsibility of the person purchasing the insurance policy to know the terms and conditions that are listed in the policy document.
Also, post-purchase the policyholder has to pay premiums, renew the policy before the date of expiry, and know what is covered and what isn’t covered under the policy. Therefore, if a claim is raised by the insurer for a service not listed in the policy document then the insurer has the right to reject the claim.
For this reason, it is vital that policyholders know what is offered by the insurance policy in detail.
Purchase the Policy through Authorized Channels
To be on the safe side, it is always best to visit the insurance company on their official online platform, or an authorized insurance agent to purchase an insurance policy. One thing that the policyholder can be sure of is that it is legitimate and the risk of fraud is minimized.
While selecting insurance agents, always select agents who have a license or documents backing their credentials before the insurance cover is purchased. This is because one would have to go through a lot of trouble to forge documents and licenses.
Therefore, it is always advisable to purchase insurance from the official website of an insurance company as it is the safest option available. In case one has doubts about the authenticity of the website or company, cross check by looking at online reviews or talk to other people, friends and family, before purchasing insurance.
Keep in Touch with the Insurance Company
Another thing that policyholders need to keep in mind after purchasing an insurance plan is to keep in touch with the insurance company. Most insurance companies provide round-the-clock customer care service through a toll-free number.
Always Insist on Self-Signatures
A rule of thumb that one should always follow while renewing or purchasing a new insurance policy is to sign the document yourself. Do not let anyone else make signatures on their behalf so that this it does not fall into the wrong hands.
Request for Payment Receipts
Insist on getting payment receipts from the online channel you’ve purchased the policy, or the insurance agent. This will serve as proof of payment and the details provided are verifiable.
Can an Insurance Policy Affect Your Credit Score?
Credit score is an important tool to assess the financial responsibility of an individual and the financial risk that he or she would pose to a financial institution. It helps them access whether a person is likely to pay back a loan.
Knowing your credit score is the first step to improving it. This score will have an impact on the premium that one has to pay towards the insurance policy as well.
Also, there are a number of other ways in which maintaining a good credit score opens possibilities that save money on any type of insurance plan. Insurance companies scrutinize credit history and it helps drive records before purchasing insurance premium.
For an individual with a high insurance rate, the most effective way to reduce it is to improve the credit score.
A credit score ranging from 300 to 850 represents a risk factor that the borrower has. The score is based on debt collected, bankruptcies, unpaid credit card bills, and tax liens will make the score come down.
Several motor insurance companies in India take stock of the credit score that is referred to as credit-based insurance score when they calculate the premium. Like the credit score, it looks at the history of bill payment in a timely manner and maintaining accounts with a good standing.
Note that the insurance company does not take into consideration information that include income or job history.
Motor Insurance Covers during Monsoons
Monsoons in certain parts of the country can cause havoc that is unimaginable, and makes it very unsafe to drive in such conditions. At the same time, driving in bad weather conditions poses a threat both to the driver as well as the vehicle.
It would be safe to say that monsoons are the time of the month when vehicle owners require maximum charges for vehicle maintenance. Also, water logging, heavy rainfall, accidents, and vehicle skidding are few of the consequences of bad weather that can have an impact on the vehicle.
According to studies, the number of road traffic accidents increase exponentially during the monsoons. Some of the reasons that can be attributed to this include the number of times the driver does not know how to take adequate precautions while driving in bad weather conditions but purchasing a motor insurance in India safeguards the policyholders in such trying times.
How to prepare your vehicle for monsoons?
Since it is always advisable to take precautions during bad weather conditions, it is a good idea to monsoon proof one’s vehicle. Some of the ways in which one can do that are:
Motor vehicle’s service
Headlight or emergency lights
Motor Vehicle Service
During the monsoons or just before it is scheduled to begin get the vehicle serviced, which is essential. Get engine oil replaced, check fuel, and air filter as well as the silencer and suspension joints since these parts are affected the most during monsoons.
Exposure to moisture reduces the efficiency of the brakes. However, this can be avoided to use the brakes often and keep it well oiled.
The chances of hydroplaning and skidding increase when the road is slippery. This can be avoided by checking the type threads and ensuring that the treads have not become deep as it increases the vehicles risk of skidding.
Wipers are essential especially during the monsoons and hence it must be checked and repaired, if required, well ahead of this season. It helps to provide better visibility of other motor vehicles ahead, to stop between wet roads.
Headlights or Emergency Lights
Headlights and emergency lights are essential and must be functional, particularly during the monsoon season. If they are cracked or broken then get it repaired since water can seep in through the cracks and cause a lot of damage to the electrical parts and the bulb that will be very expensive to replace.
Has GST had an Impact on Motor Insurance in India?
Everyone is talking about GST or Goods and Services Tax that has been effective since July 1, 2017. It is safe to say that it was one of the biggest tax reforms implemented post-Independence.
The main objective of implementing GST was to streamline the number of taxes levied on businesses and consumers. Now, taxes for goods and services have become more transparent and there is a single type of tax levied across the country doing away with multiple taxes.
What Effect Does GST Rate Have on Insurance Premiums in General?
The agreed upon tax rate of 18% has been set by the GST council for the insurance sector. This is a 3% jump from the previous rate of 15% that has an impact directly on the premium to be paid by insurance policyholder.
What is the Impact of GST on Plans?
Since motor insurance plans India is clubbed under General Insurance that comprises of two categories: third party motor insurance and comprehensive motor insurance. Comprehensive covers usually include third party insurance cover while the other cover is the basic cover that is mandatory, by law, for vehicle owners to purchase.
Post GST the premium for motor insurance plans India have gone up to 18% and hence will be more expensive. However, if the vehicle insurance renewalis after GST implementation,the premium paid will see a sharp increase.
Are there Any Benefits that GST Offers to Insurance Buyers?
Since GST has raised the premium of motor insurance coverage, it proves to be beneficial for insurance buyers. This is because the competition between insurance companies will increase,and they might even lower their prices to stay in the competition and offer better coverage, which is excellent news for policy buyers.
Also, with the competition getting tougher, customer care can become a key factor for insurance policy buyers while selecting motor insurance in India. Additionally, a speedy rate of claim approvals help keeping existing customers happy, and prevent them from moving to competitors.
What is Commercial Vehicle Insurance?
Commercial vehicle insurance is meant for vehicles that are used for commercial purposes that include transporting customers or goods for which a fare is paid. These vehicles, for the most part, travel on multiple trips or long distance trips to complete assigned tasks.
For instance, a truck is used to transport raw materials from a factory to a supermarket or courier companies carry parcels. Since the number the commercial vehicles are on the road most of the day, the risk of the vehicle meeting with an accident increases with it.
In the event that an accident does take place, it would mean a loss of business for a few days along with repair or replacements charges. For this reason, it is essential that businesses invest in commercial vehicle insurance plans India so that they can avoid paying exorbitant prices towards repairs out of pocket.
Apart from this, commercial vehicle insurance protects businesses fromdepreciated value of the vehicle, and acts as a buffer to shield the business from financial losses or expenses. Add-on covers can be taken up to protect business interests in check without having to foot the bill for expenses that can be covered by insurance.
Can Motor Vehicle Insurance Premium be listed as an Expense for Commercial Vehicles?
Yes, the premium paid towards motor vehicle insurance can be listed as an expense for commercial vehicles. No limit has been set on the maximum premium to be paid for vehicle insurance claim.
It must be noted that if the vehicle is being used for personal use then the premium is not eligible to be treated as company expenses. However, in the event that the vehicle is used for both commercial and personal purposes then a deduction can be allowed on premium paid for the period where the vehicle was used for business.
What is a Commercial Vehicle Premium Calculator?
Since commercial vehicle is mandatory by law here, the objective of making it compulsory is to protect the insurer arising from an accident. For this reason, a comprehensive plan covers damages caused by third party insurance.
The best way to find an appropriate commercial vehicle insurance plan in India is to use a premium calculator to check the premium payable. The calculator helps one calculate the premium amount to be paid that includes third party insurance, add-on covers, and other requirements.
The date of registration of insurance and details of the vehicle need to be filled up in the online insurance calculator,after which one can click the submit button. The calculator will then calculate the premium using these details, and give policyholders an idea about the premium they are likely to pay.
Two Wheeler (Motor Cycle) Insurance
There are two major types of motorcycle insurance policies available that include comprehensive policies and liability only insurance policies. Therefore, all two wheeler vehicle owners have to mandatorily purchase some form of third party liability insurance.
Motorcycles, bikes, super bikes, scooters, and mopeds require some form of insurance cover. If the vehicle owner is caught without a valid two-wheeler insurance policy, then they can be fined or jailed, as per the provisions in the law.
Comprehensive Motorcycle insurance
Comprehensive motorcycle insurance plans provide coverage that is extensive and covers nearly everything. There are four major benefits extended by such policies that include:
Personal accident cover
Protection from loss due to damages to vehicle
Insures against third party liability
Death or bodily harm
Damages to third party
Personal Accident Cover
A personal accident insurance cover protects policyholders with an upper limit of Rs. 1 lakh and the injuries that cause total or partial disability or death. Insurance companies have optional benefits that include cover for liability policy.
Protection from Loss due to Damages to Vehicle
This form of insurance cover protects policyholders from wear and tear of the vehicle caused due to natural or man-made reasons. Note that the basic insurance covers offer add-ons or riders for this type of coverage unlike comprehensive plans.
Insures against Third Party Liability
Comprehensive coverage protects insurers from third party liability that includes:
Damages to third party: The insurance company covers losses that are specified in a time frame as it is defined in the insurance policy document.
Death or bodily harm: The insurance company covers the loss for a specific time limit as defined in the policy document.
The next step in the process is to select the perfect motorcycle insurance.
How toSelect Motorcycle insurance ?
Since most of the vehicles on the road are two wheelers and the number is always on the rise. To cater to two wheeler owners there are several insurance companies offering insurance policies.
The two main choices to purchase motorcycle insurance is through an agent or buy it online. Regardless of how the insurance is purchased there are a few key things that one needs to keep in mind when making a decision.
Some of the aspects that one needs to take into consideration while deciding the most suitable motorcycle insurance are as follows:
Check the policies
No Claim Bonus
Check the Policies
The first things that one needs to take into consideration while selecting motorcycle insurance is to check the policies. Look at as many polices that are available and the coverage offered by each of them.
The next step would be to compare benefits, exclusions, and features offered by each of the motorcycle insurance policies. This will definitely give you an idea about the policies available and zero in on the best possible options.
The next thing that one needs to take into consideration is the premium amount that he/she needs to pay to the insurer for the motorcycle insurance. Make sure that the premiums offered by different insurers are compared and that the payments are affordable.
Research helps because it can help the prospective policyholder select a coverage plan that has better riders and offers discounts. Also, this way you can be sure that you are able to make the best possible choice at a reasonable price.
In the age of the Internet, there are so many insurance players exclusively online, which might turn out to be a scam. For this reason, it is essential to select a reliable insurance company to place your trust in.
Always cross check whether the insurance company is legitimate one by checking motor insurance reviews online and find articles. It will help visiting an aggregator website to check if the company has been mentioned or not.
No Claim Bonus
Two wheeler insurers offer customers no claim bonus with the policy. Often they might even add in a rider or two free of charge.
Another indicator of whether or not an insurance company is any good or not is to check their client complaint ratio. If the claim settlement rate is high it indicates that in case you run into any trouble chances are that it will get resolved.
Also, this data indicates the kind of customer care support one is likely to receive. So, keep these points in mind while shopping for motorcycle insurance.
What is meant by Zero Depreciation Motorcycle Insurance?
A zero depreciation motorcycle insurance cover is a rider or an add-on policy that policyholders can opt for. This rider protects, or rather, insulates policyholders from the depreciation amount which is deducted when one registers for an insurance claim.
The reasons that can be attributed to the depreciated value of the two wheeler vehicle include wear and tear as well as age. When policyholders file claims they pay a large sum because of the deduction caused by depreciation.
However, the best way to save money is to invest in a depreciation rider that will provide relief and ensure that economic damages are buffered. This is a great idea since the insurer will cover the losses.
What are some of the Benefits Offered by Zero Depreciation Insurance?
Taking on a zero depreciation insurance cover helps customers in a number of ways. Some of the benefits offered by zero depreciation insurance include:
Sense of security
No apprehension on protection of vehicle
No out of pocket expenses
Adds value to any basic cover
Each of these points has been discussed in detail in the following sections.
Sense of Security
A good night’s sleep devoid of worry and getting worried about the depreciating value of one’s vehicle is a major problem. However, with this type of add-on cover it gives people a sense of security they need to incur a huge loss with each passing year and that the costs for repairs or other related expenses will be covered by the rider.
No Apprehension on Protection of Vehicle
When it comes to older vehicles there are many exceptions that are added to the terms and conditions. But investing in such riders can help bring down the apprehension that people have about their vehicle’s protection.
No Out of Pocket Expenses
The best part about investing in this rider is that it limits the policyholder’s out of pocket expenses for repairs or any other reason. This is reason enough to invest in this type of insurance cover.
Add Value to Any Basic Cover
Another aspect that one needs to think about if one is having second thoughts about investing in this cover or not is that it adds value to any basic cover. Therefore, it is a must have, and even paying a little extra can help secure one’s future to a large extent.
What are some of the Main Features on this Rider?
Some of the important features that one needs to keep in mind include:
Applicable for new and old two wheeler vehicles
Coverage includes rubber, plastic, fiber glass, and rubber parts
Standard rate vary between 0% to 40%
However, these policies do not cover:
Damages caused due to wear and tear
Damages due to mechanical breakdown
Policyholders have to renew this rider every year to keep enjoying the benefits provided by this cover.
Is regular Motorcycle insurance enough to cover Super or Sports Bikes?
Another question that is bound to cross the mind of two wheeler vehicle owners with superbikes is whether a regular insurance plan is enough to cover super or sports bikes. Well, the answer to this question is no.
A regular motorcycle insurance coverage might cover wear and tear but not anything serious since these bikes are much more expensive. Also, in the event that an accident takes place the repair charges will be much higher, to say the least, and would result in the policyholder making out of pocket payments.
However, there are a few riders that are available that add a few more protections to existing insurance coverage plans. Some of these add-on covers are as follows:
Zero depreciation cover
Cover for pillion riders
Daily cash allowance
Zero Depreciation Cover
A zero depreciation cover is one that is essential for a sports bike since it protects that bike from wear and tear, which is not covered by standard insurance plans. While filing a claim, a standard cover only takes care of the loss caused to the value of the vehicle while taking into consideration the aspect of depreciation based on the bike’s age.
By taking up this add-on cover, it reimburses policyholders with the loss caused due to depreciation. Also, policyholders will be able to claim the entire amount and there won’t be any deductions.
There are a number of standalone riders that can be added to motorcycle insurance plans for sports bikes. Some of the options available include key replacement, daily cash allowance, pillion cover, zero depreciation, passenger cover, and daily cash allowance to name a few.
The benefit of opting for extra covers is that it ensures more protection for the policyholder and his/her bike.
Cover for Pillion Riders
Investing in a cover for pillion riders is a must since it is essential to protect them. If an accident takes place causing death or disability of pillion riders are eligible to receive an allowance, pre-decided, to the person affected or the family if the policyholder purchased this cover.
Daily Cash Allowance
Another cover that policyholders with superbike need to purchase is a daily cash allowance cover. In case the vehicle sustains severe damage and requires repairs immediately then this insurance cover is the perfect option to take up.
What is a Multi-Year Two-wheeler Insurance Plan?
Many policyholders are unaware of the fact that they can purchase multi-year two-wheeler insurance. This would save them the trouble of renewing the insurance plan yearly and same it serves to be a much more convenient option.
However, policyholders should always keep in mind the renewal dates in mind because missing the renewal date could lead to several problems. Some of the advantages of selecting a multi-year insurance plan have been discussed in the following sections.
What is the Main Objective of Multi-Year Insurance?
The foremost objective of multi-year insurance is that the policyholder needs to renew the insurance plan after three years. In a way, this helps minimizing the risk of the policy getting lapsed in the next few years and save on losses.
Also, it is always better to take on long-term plans since the benefits provided are more rounded out and are available over a period of time.
What are the Features of Multi-Year Insurance?
Some of the benefits of investing in a multi-year insurance plan include:
Own damage cover
Personal accident cover
Policy can be issued within minutes
Easy to port policy
Each of these policies has been discussed in the following sections.
In the event of an accident with another vehicle or object resulting in injuries or damage to property to a third party, not policyholder and the insurance company, the policyholder can raise a third-party claim. Basically, this insurance cover protects the policyholder from liability caused do to an accident based on the terms and conditions agreed upon in the policy document.
Own Damage Cover
Most insurance policies cover third-party covers but not own damage covers. However, the benefit of having an own damage cover is that protects the policyholder from making out of pocket expenses in cases where they were at fault for causing damage to the vehicle.
Also, it is always better to add this as rider since it can help policyholders from spending a lot of money on repairs and damages to the vehicle. Paying a higher premium for an insurance plan is a much better idea than shelling out money each time for repairs or any changes.
Personal Accident Cover
Another benefit of option for this type of motor insurance online is that it extends personal accident cover to the policyholder. In the event of an accident, the insurance plan covers the medical related expenses as a result of injury or hospitalization or disability caused by accident.
Policy Renewal within Minutes
The process of filling out all the paperwork to get an insurance policy can take a lot of time. However, at the time of renewal it is quite quick, simple, and easy as the application can be filed online.
No additional documents are required and if the policy is being renewed before the date of expiry then there will be no problem while renewing it. Also, this process will take only a few minutes to complete.
Easy to Port Policy
Another thing that policyholders need to keep in mind is that the process to port their insurance plan is rather simple. All they need to do is file the paperwork and the insurance policy will be transferred within no time.
It is hassle free and customer friendly and these are the kinds of benefits that customers want.
Why You Need Long-term Two-wheeler Insurance for Your Bike
Long-term insurance plans have a number of benefits that are extended to policyholders. Some of the benefits include:
Avoiding unnecessary trouble
No compromise on no claim bonus
Avoid unnecessary losses
Each of these points has been discussed in the following sections.
Avoiding Unnecessary Trouble
The foremost advantage that any long-term insurance plan is that it eliminates the hassle of worrying about renewals every year. Taking on a long-term plan will help policyholders focus on other things and drive their vehicle without worrying about the insurance plan lapsing any time soon.
While taking out a yearly insurance the premium is bound to increase the following year and one would end up paying more the next year. However, when it comes to purchasing long-term insurance plans the advantage is that the same premium is set for the following years.
As a result, policyholders can save more money by opting for a long-term insurance plan instead. Additionally, the tax benefits extended and other benefits combined will help the policyholder save quite a bit.
The procedure to cancel an insurance plan is quite simple and hassle free something that most policyholders are not aware of. Like a single-year insurance plan the policyholder can opt out of the policy at any time while the policy is active and the insurance company will refund the money that has not been utilized.
However, it must be noted that in order to purchase a new motor insurance policy online one needs to surrender the previous one. Note that the points earned on NCB can be transferred and request a certificate to be issued by insurer to be shown to the new insurance company to receive a sizable deduction on premium amount.
No Compromise on No Claim Bonus
Another essential point that one should keep in mind is that policyholders should never compromise on no claim bonus. If the policyholder has not made any claims that year then they are entitled to a discount or reduction in premium amount the next year, even in the case of long term insurance plans.
Avoid Unnecessary Losses
Investing in a good insurance plan can help policyholders protect themselves from liability from a number of situations.
Also, vehicle inspection is apparent every year during policy renewal. But in the case of long term polices, the inspection takes place only when the policy is being renewed and hence is a non-issue for long-term insurance policies.
Tips to Buy Two-wheeler Insurance Policy
According to research studies, motorcyclists are more prone to meeting accidents when compared to other vehicles. This is all the more reason that vehicle owners must buy insurance policies as it is mandatory by law as stated in the Motor Vehicles Act.
Each state has rules when it comes to enforcing traffic rules and for this reason it is essential to select an insurance plan that will holds good across the border. Some essential tips that one should keep in mind include:
Personal injury protection
Custom part and equipment coverage
Uninsured and insured motorist insurance
Guest passenger liability
Liability insurance includes protection to policyholder in cases of property damage and bodily injury offering coverage in case of accidents or other circumstances. This insurance type is important for everyone regardless of the state that policyholder resides in.
Personal Injury Protection
Personal injury protection is mandatory in states that have in place “no-fault” laws. It refers to the formulation of pay outs that do not cause legal liability and any losses or expenses are covered by this insurance plan.
Custom Part and Equipment Coverage
This type of coverage is a unique insurance coverage for two-wheeler insurance. Specific coverage foots in the bill for parts or equipment that are not usually insured under an insurance coverage.
A collision coverage plan involved the collision that takes place between two vehicles. These insurance plans help policyholders protect themselves from financial liability due to a collision.
Uninsured and Insured Motorist Insurance
It is common to see cases where one driver is hurt by another and does not have any form of insurance which would be sufficient. For this reason, it will be helpful to have such an insurance plan to safeguard the policyholder.
Guest Passenger Liability
The guest passenger liability insurance is designed for two-wheeler vehicles specifically. It covers injuries sustained by the pillion or co-passenger on the two-wheeler vehicle.
Several states make this type of insurance cover mandatory. Even if it is not mandatory it is a good idea to select this rider or insurance plan.
Can Two-wheeler Insurance be Cancelled?
A question that is bound to cross the mind of a vehicle owner at some point in time is whether an insurance plan can be cancelled. It is mandatory by law that all vehicle owners must purchase at least third-party liability insurance but the policyholder has the right to cancel a policy to take on another one.
However, policyholders need to be careful not to cut it too close since it could lead to imposition of fines and breaking several laws. For this reason, pre cancellation the policyholder must purchase another one at the earliest to protect them and the vehicle from any form of liability.
A policy is active from the date of purchase and will be available till the date of expiry. While the policy is active and one wants to cancel the insurance policy for a number of reasons.
Do You Need to Cancel the Motor Insurance Coverage?
While selling or buying aold vehicle, it might be a good idea to cancel the current coverage. Most insurance companies allow the insurance policy to be updated for models,wherein premiums reflect the changes.
Therefore, policyholders must try to amend the insurance policy first if they are thinking of selling their vehicle. However, a fee would have to be paid for this change and one for the cancellation as well.
In the event that new vehicle buyers do not want to use the existing insurance policy, they can cancel the policy and opt for one that suits their needs. Think it through and compare policies before opting to select an insurance policy that caters to their needs.
What are Endorsement Policies for Motor Insurance?
It is needless to say that driving on Indian roads without any form of insurance is risky business. Vehicle owners driving without the right documents, which includes insurance, if caught by law enforcement officials will be fined.
Endorsement policies are referred to as policies that are made on behalf of the policyholder from the insurer. For instance, an endorsement refers to making changes in the insurance policy on the request of the policyholder that includes, and is not limited to, the following:
Change in vehicle
Change in coverage
Change in driver
Loss payee changes
Apart from this an endorsement can be made to change specific details of the coverage plan.
Do Policyholders Request for Endorsements Often?
Motor insurance companies anticipated that policyholders might want to change their policies when the policy is active. For this reason, the provision of endorsements has been established so that the policyholder can request for changes.
People tend to request for an endorsement once a year while a smaller number request for multiple endorsements throughout the year. Also, several additions and removals on the coverage plan are made each month by policyholders.
However, policyholders need to be mindful of the number of endorsement requests made by the policyholder. This is because making frequent requests that are not well thought out or necessary can cost the policyholder a lot of money, unnecessarily.
What are the Different Types of Endorsements?
There are a number of reasons why a policyholder might request for an endorsement that include the following:
Change in engine number
Change in chasis number
Change in registration number
Change in name
Change in voluntary deductible
Change in vehicle’s fuel type
Change in vehicle’s variant
Change in motor vehicle’s cubic capacity
Correction in no claim bonus
Change in vehicle’s manufacturing year
Change in ownership of vehicle
Addition or deletion of zero debt
These are some of the changes that can be requested by making an endorsement to an insurance company.
How Can an Endorsement be Made?
The process of making an endorsement is quite simple that the policyholder will have no trouble carrying out. The policyholder has to write a letter to the insurer requesting that the changes to be made to the policy.
After the insurance company receives the request, they will look into this and cross check if all the details are in place. Once the accuracy of all the details about the request has been cross checked it will proceed to the next step.
What are the Implications of Endorsements?
Since the endorsement process is quite simple that includes completing and submitting documents along with the letter and the proof of necessary changes. Some endorsements will elicit an increase or decrease in the premium amount.
So as a thumb rule opt for endorsements that are necessary because it will save the policyholder and the insurance company time and money on processing requests.
What is Cashless Insurance?
Cashless insurance was first extended to policyholders by medical insurance companies. Seeing the multiple benefits that it offers this concept has been adopted by the motor insurance sector as well in the form of extending cashless claims to policyholders.
As the name suggests, cashless claims in motor insurance refer to policies which provide cashless repair of accidental damages at a network garage of the motor insurance company. For example, if the motor vehicle breaks down and requires repairs immediately it must be taken to a garage and the policyholder need not foot the bill and pay out of pocket for these expenses.
Cashless claims are very popular among policyholders since it makes the process of accidental claims and repairs quite convenient.
How can you file a cashless claim against your Motor Insurance Policy?
In the event of an accident, the motor insurance company must be informed first along with a detailed incident. Also, ask the insurance company the procedure to be followed to file a claim, since it differs from one insurance company from the other.
When the motor vehicle is taken to the garage, one must hand over the keys to the vehicle and inform the garage about the insurance policy. Also, discuss specifics of the insurance plan, particularly what is covered by insurance plan and what isn’t.
How does this Process Work?
The next step in the process is to select the garage for the repairs. However, this process will be guided by what is stated in the policy document based on the coverage plan and the bills can be sent to the insurance company.
Once it is verified, the insurer will make the payment for the accidental repairs. However, policyholders must keep in mind that not all repairs are covered by an insurance policy like damaged parts, and would have to be paid by the policyholder.
Other than that, the insurer will take care of the rest of the details. It would be a good idea for policyholders to ask the insurance company for a list of authorized garages that are available for cashless service, just to be prepared for emergencies.
What is Covered by the Insurance?
For the most part, cashless claims cover vehicle parts, accessories as well as plastic parts. Most of these costs are agreed upon by the insurance company and the garage so that the policyholder is not hassled during this process and ensure that everything is in order.
What the Common Mistakes Made While Raising Cashless Claim Insurance?
Most polices holders are often unsure about what qualifies for a cashless insurance claim. Some of the mistakes committed by policyholders are as follows:
Motor vehicle has been modified when it is insured
Repairs are made without informing insurance company
Damages caused by owner
Motor vehicle is modified when it is insured
Policyholders often modify their vehicle when it is already insured; the vehicle is inspected or evaluated at the time the insurance plan was purchased. However, modifications to improve the vehicle would result in the motor vehicle being different from the one that had originally been insured.
Also, in case of improvements made using modifications which would increase the efficiency of the vehicle. This in turn would result in a rise in the premium amount payable to the insurance company by the policyholder.
Repairs are Made Without Informing Insurance or Police
Another point that policyholders often overlook is that if the damages caused by the owner of the vehicle unintentionally. Unless policyholders have purchased own damage rider or add-on policy the cannot file a claim in such circumstances since most insurance policies cover damage caused by unavoidable events or natural disasters.
Damages Caused by Owner
Another point that policyholders often overlook is that if the damages caused by the owner of the vehicle unintentionally. Unless policyholders have purchased own damage rider or add-on policy the cannot file a claim in such circumstances since most insurance policies cover damage caused by unavoidable events or natural disasters.
The key takeaway for policyholders from these three points is that the terms and conditions of cashless claims are quite clear. It is best that policyholders become familiar with them to receive the best outcomes.
What are the Advantages of Cashless Claims?
Some of the advantages of opting for cashless claims include:
Policyholders need not pay out of pocket
Insurance covers repairs
Network of garages across the country
Easy process to file a claim
Insurance company takes care of all details
It is safe to say that cashless motor insurance claims online make a policyholder’s life simpler.
What is Return to Invoice Cover for Auto Insurance?
Since buying an insurance cover is a significant investment it is essential that policyholders make the most of it. Another add-on plan is return to invoice or RTI cover that offers policyholders a number of benefits that have been discussed in the following sections.
What Advantages Do RTI Riders Cover?
With the RTI cover policyholders have an option to bridge the gap the value of the vehicle on the invoice and Insured Declared Value. The coverage plan reimburses the lost incurred by the policyholder which is the price the policyholder paid for the motor vehicle.
Note that the RTI cover would increase the premium of the insurance plan. Additionally, the add-on benefits offered till the motor vehicle reaches the predefined age limit.
Insured Declared Value
The insured declared value or IDV is the value of the vehicle paid by the insurance company to the policyholder in the event that the motor vehicle is damaged beyond repair or gets stolen. The insurance company sets the IDV value at the time of purchase of the insurance plan by the policyholder.
When is RTI Applicable?
There are several instances where the RTI is applicable. However, policyholders must note that it won’t work in case of minimal or small damages.
This scheme is essential for the policyholder to recover any financial losses resulting from the vehicle being stolen or getting severely damaged. Also, in areas that are prone to thefts one should opt for this add-on cover that protects the policyholder from liability.
The foremost advantage that this cover provides is that the policyholder will be able to get back the on-road purchase price for the vehicle.
RTI Available for 3 Years
Something that policyholders need to keep in mind is that the RTI is available for a vehicle that is not more than 3 years old. Insurance companies can ensure that the policyholder will be fully reimbursed for the vehicle since the vehicle’s depreciation value is not very high.
As a rule, most insurers do not offer a renewal policy as long as the invoice covers specifics like registration charges, road tax, on-road price of vehicle among other things. If policyholders opt to buy a new motor vehicle, then this is an excellent option to select.
Does Total Damage Result in Automatic Replacement?
Since accidents at times result in the need to replacement of damage or repairs it might make one wonder if total damage results in automatic replacement. One should note that IDV is not the actual market value rather it is a value that is as per the one given by Insurance Regulatory and Development Authority.
How can Total Loss be established?
In order to establish total loss, the documents required include an FIR and driving license. Also, the amount estimated required to pay towards vehicles repairs for garage and the owner.
Policyholders must intimate their insurer to inspect the vehicle in the event that an accident has taken place at the location where the accident occurred.
In cases of total damage then the vehicle has to be shifted to a garage and the insurance company can help repair the vehicle.
What is the Best Option in Case of Total Loss?
In scenarios where total loss is enormous, policyholders might wonder whether the policy can be renewed or not. The answer to this question is no since the vehicle in question is deemed to be written-off as a loss.
Furthermore, the RC of the vehicle needs to be surrendered at the Regional Transport Office and the vehicle’s registration will be cancelled. Even if the vehicle is being sold to a buyer, scrap dealer, even in such instances the policyholder needs to make sure that the vehicle documents are transferred and the RTO is informed about this sale to prevent any misuse of the documents.
Does You Second Hand Vehicle Require Motor Insurance?
Often vehicle owners buy a second hand vehicle and think whether they really need to buy another insurance plan. However, as a rule, all vehicles must be insured as per the law and this is the first part of the answer that vehicle owners should understand and accept, no questions asked.
In the event that the second hand vehicle meets with an accident without having an insurance coverage, then the policyholder would have to pay the bill out of pocket. Also, motor vehicle repairs do not come cheap these days and would burn a hole in one’s pocket.
For this reason, if one is purchasing a second hand vehicle then it must be ensured that the previous insurance plan is transferred to the new owner or it is cancelled. If the insurance plan is going to be cancelled then the policyholder must have a replacement policy on standby to purchase it so that the insurance plan is covered from day 1 of purchase.
Mistakes New Owners( buyers) Tend to Make
Some of the common mistakes that vehicle owners tend to make include filing a case of grievance in consumer court without understanding the insurance policy its terms and conditions. In the hurry to purchase the insurance plan, vehicle owners skip the most important step which is to understand what the insurance policy says.
Since the insurance policy is a binding contract between the insurance company and the policyholder it is a must that policyholders should know the specifics. Also, old owners (sellers) are responsible to ask the new owner (buyer) whether they want to purchase a new insurance policy or to transfer the existing one.
Once this has been sorted out, the new vehicle owner should ensure that all the paperwork is in place and the transfer is successfully completed. Not transferring the insurance plan will cause trouble for both the buyer and the seller.
Prior to Transfer of Motor Insurance Online in India
Vehicle owners should understand an online motor insurance policy’s structure. Each insurance policy is divided into two parts: third party and own damage:
Third party: Damage caused to another person or vehicle.
Own damage: Damage caused by policyholder to own vehicle.
After a vehicle owner buys a used vehicle according to section 157, Motor Vehicle Act mandates that the policy should be transferred to the new owner in 14 days. During this time period, the third party will be transferred automatically but it is not the case with own damage.
Once the 14 day period has passed and the new owner has failed to transfer the policy to his or her name, then the insurance company cannot be held liable to pay for any losses that were incurred by the new owner. Also, if the name of the first owner is still on the insurance policy, even then the insurance company is not liable to pay for damages.
If the vehicle owner does move court, then the first owner will be sent a notice to pay the third party out of pocket for losses that the third party has incurred due to the new owner. Additionally, the proof of sale, transfer of vehicle and other procedures is time consuming and difficult process to say the least.
For this reason, the new vehicle owner and the seller are urged to transfer the insurance plan as soon as the deal is finalized so that all a host of problems can be avoided.
About Anti-Theft Devices
Can Anti-Theft Device Reduce Insurance Premium?
Since the number of vehicle thefts are on the rise investing in an anti-theft device would sound like the perfect option to a number of problems. In Delhi alone the number of thefts reported has gone up by 38%.
Installing an anti-theft device on the vehicle will help protect the policyholder and the vehicle but this it in turn can help reduce the insurance premium rate as well. Ensure that the device purchase has been approved by Automobile Research Association of India.
Do Insurance Companies Offer Discounts on Motor Vehicles with Anti-Theft Devices?
Yes, insurance companies do give incentives to policyholders who have invested in anti-theft devices. They encourage policyholders to invest in this technology since prevention is always better than cure.
Insurers feel that installing these devices help prevent theft of the vehicle or finding the vehicle after an attempt to steal the vehicle. As a result, it is a win-win situation for both the insurer and the policyholder.
Several attractive discounts are offered to policyholders particularly lower premium insurance rates.
How Can Policyholders Benefit From Anti-theft Devices?
On an average, insurance companies offer a 2.5% or a maximum of Rs. 500 discount for installing an anti-theft device on the vehicle.
Policyholders should check out the discounts offered for a specific insurance plan over a period of time.
Are All New Motor Vehicles Fitted with Anti-Theft Devices?
Most vehicles are fitted with some or the other type of anti-theft devices. One of the first questions that an insurance agent is bound to ask prospective customers is whether the motor vehicle has an anti-theft device or not.
What Type of Anti-Theft Device are Preferred?
There are a number of security features that are available to policyholders in a market that include ignition cut off device, satellite tracking devices, engine control, and computerized anti-theft device. Policyholders can select the specific features that they want installed in their anti-theft device based on the risks that they are exposed to.
Some of the preferred anti-theft device brands, approved by ARAI, include Minda, Xenos, Nippon, and AutoCop. However, one should look at the variants offered some of the features include:
Steering wheel lock: Locks the steering and unless it is disabled the steering won’t move.
Alarm: If the vehicle is tampered with then a loud warning will be sounded.
Electronic immobilizers: Built-in transponder that signals ignition and fuel pump.
Keyless lock drive: Electronic code required to use the vehicle.
Vehicle tracking: In the event of theft, global positioning system (GPS) tracking will be used.
These are some of the features of anti-theft devices.
Key Replacement Cover
What is Meant by Key Replacement Cover?
Imagine that a person is running out of time and is almost late for a meeting and is unable to find his or her vehicle keys. Nothing can be more annoying than that.
Despite turning down one’s house upside-down with no sign of the key the best is that one might not find it anytime soon. In such a situation, it is best that the policyholder gets a replacement for the key instead.
However, making a duplicate key does not come cheap not is it an easily available service. The key can be replaced only by the manufacturer or the motor vehicle and this means that it is going to take some time and it will cost quite a bit.
Policyholders need to worry since they can invest in an add-on key replacement cover while purchasing a motor insurance cover.
Why is Key Replacement Important?
The basic motor insurance online policies do not cover key replacement and, hence, it must be bought exclusively by the policyholder as an add-on policy. Regardless of whether the key is lost or stolen, the policyholder can send a request to the manufacturer for a new set of vehicle keys.
However, it might take a week or two to receive the replacement key. Also, in some cases, very rare, the locks will be changed as well and that will be an added expense.
It goes without saying that the cost for the more expensive motor vehicle will shoot up when compared to other vehicles.
Inclusion of Key Replacement Add-on Cover
The inclusion of the key replacement add-on cover’s features and costs will differ from one insurance policy to the other. The insurer will pay for the charges incurred to make replacement keys if the keys are stolen or lost and in case the lock needs to be changed.
Purchasing a Key Replacement Cover
A key replacement cover can be purchased to cover the extra costs and expenditures due to the loss of the key. This add-on cover includes the following:
Cost to make a new set of vehicle keys
Expenses incurred if lock needs replacement and is valid for 2 claims during the policy period
The cover is capped at Rs 25,000 for each claim
The insurance cover will cover the costs involved in key replacement and to keep it safe. In order to avoid this, it is best that the motor vehicle owners purchase two sets of keys while purchasing a motor vehicle since it is always better to be on the safe side and avoid such issues.
For this reason, policyholders are urged to take up this add-on insurance plan since it will help them breathe easy and be prepared for any possible situation that comes their way. Needless to say, the process is quite simple and one need not worry about any complications since the insurance company will guide the policyholder every step of the way.
Filing Motor Insurance Claims
Should You File Multiple Motor Insurance Claims in a Year?
During the monsoon season, the number of accidents, repairs, and small claims that one could have otherwise avoided come to light. For this reason, a policyholder might end up making multiple claims in a year.
However, policyholders are bound to think about whether it is ok to file multiple claims a year or not. It goes without saying that filing multiple claims will have an effect on one’s policy in more ways than one.
Filing Claims Back-to-Back
Filing two back-to-back insurance claims in a week or spread over a year do not really matter. This is because these claims will be reported by the insurance company as multiple claims over a single year.
Multiple Claims and Deductibles
When multiple claims are made then the question regarding the deductibles arises. For instance, if the windshield gets cracked and needs replacement immediately since it is essential requirement of the vehicle and each time a claim is raised a deductible is applicable for the damage caused.
Does the Claim Type Matter for Multiple Claims?
Yes, the claim type matters for multiple claims since the process is not that frequent but rather the type of claim that is filed. For insurance, if an at-fault claim is filed then the amount of damage must be filled in the claim.
Mentioning the claim type can create a big difference while filing it. The two major types include:
How You Can Avoid Filing Multiple Claims
It is essential that policyholders need to be mindful about the number of claims that they are filing. Some of the ways to avoid this include:
Pay for claims yourself
Each of these points has been discussed in the following sections.
Policyholders should always exercise caution always and try to avoid at-fault claims. In order to do so, one should check weather conditions and should try and avoid driving when the conditions are bad, always keep the motor vehicle in good shape, and park the garage in a secure spot.
Pay for Claims Yourself
When you have vehicle insurance coverage, and even post vehicle insurance renewal,it might seem like a no brainer not to file a claim and pay for repairs out of pocket. However, if one works out the math then one would realize that it would be the best and the cheapest option to opt for.
For this reason, as a thumb rule, always calculate how much one would have to pay to get repairs done. This is because is because filing multiple claims would result in the policyholder being categorized as a high-risk customer and increase in premium rate.
Also, since policyholders can file claims online, making the claim process more streamlines, simple, and customer friendly some it may tempt policyholders to file small claims. However, one should weight one’s options and only after that should one take it up.
When Not to File a Motor Insurance Claim
Policyholders might think about filing a motor insurance claim online when the vehicle bumps into something or the taillight breaks. The first impulse of a vehicle owner would be opt for filing a claim but it is not always the best option in available.
There are two aspects that vehicle owners need to keep in mind, while filing claims:
Third-party can pay expenses for repair
Repair costs are lower the No Claim Bonus
Third-Party Can Pay Expenses for Repair
In the scenario where another vehicle bumps into the policyholder’s motor vehicle when the policyholder was expecting NCB benefits, then there are two options that the policyholder can opt from. The first option is to pay for the repairs, out of pocket; the second option is to file a claim with the insurance company; and third option is to file a third-party insurance claim.
However, as described in the scenario when the policyholder is not at-fault for the accident then, ideally, the third-party should pay. However, this process might be cumbersome; however, it is worth giving a shot to.
An FIR and police charge sheet as it is a must to prove the fault of the other driver and it is essential that these documents are submitted so that the other vehicle owner’s insurance company will approve the request claim. This is the best way that the policyholder need not lose on receiving NCB benefits.
Repair Costs are Lower the No Claim Bonus
In general, if a policyholder has not claimed a discount for a year then they are entitled to a discount on the premium to be paid the next year often referred to as No Claim Bonus (NCB). Also, vehicle insurance coverage comprises of third-party premium and own damage premium.
Approximately 80% of the motor insurance premium is earmarked as own damage premium. And it must be noted that the discount on NCB must be sizable even if the third-party portion is ignored.
For this reason, policyholders must calculate whether the NCB is higher or the repair costs. Based on this one can decide whether to pay out of pocket for repairs or not.
When Should Policyholders Reassess Motor Insurance Policy?
An aspect that motor insurance policyholders take for granted is that they often believe that the premium rate to be paid is fixed every year. However, this is far from the truth since insurance companies take into consideration various factors while arriving at the premium rate. Consumer forums have long-term motor insurance reviews of customers who have shared that year-on-year experience with an insurer, including the change in premiums within that tenure.
For this reason, as a best practice policyholders are urged to reassess the insurance policy each year or if there are sudden changes that could affect the amount paid as premium covered. Some of the points that policy owners need to keep in mind while revaluating the policy include:
Place of residence
Changes in personal life
Each of these points has been discussed in the following sections.
It is important that policyholders assess their driving record for traffic violations, tickets for speeding, and accidents since these are indicators of high risk drivers. A driver who is perceived as high risk driver by the insurance company might end up paying much more than other policyholders.
For this reason, policyholders should aim to maintain a good driving record to be on the safe side. Also, if there are penalties then policyholders must get a good driving record and then contact the insurance company and negotiate lowering the payments made towards premiums.
Another important indicator for motor insurance premium which one should look into is the vehicle type. It is a given that the premium paid for expensive and high end motor vehicles are much higher than other vehicles since the costs involved in repairs are much higher, which is a reasonable view.
However, vehicle insurance coverage providers should get a new vehicle and make history and it would affect the premium. Therefore, it would be a good idea to spend some time on research and get discounts on vehicle insurance coverage as well as vehicle insurance renewal.
Place of Residence
The place of residence is another aspect that is factored in while calculating insurance premium, even for vehicle insurance renewal. For example, if a person lives in a populated area with a high rate of crime then this would increase of risk of damage or theft of the motor vehicle and the policyholder would have to pay a higher premium than the people living in areas that have low crime rates.
A policyholder shifting from an urban to a rural area that is gated community or less populated will be low risk and the policyholder must contact the insurance company to apprise them of the shift in residence. Also, this shift can result in the insurance company slashing the premium rate to be paid by the policyholder.
Security is another important factor that needs to be taken into consideration and vehicles with anti-theft devices is perceived to have lower risk than others. If a new anti-theft device has been installed then it is essential that vehicle owners must notify the insurance company and expect a reduction in the premium charged.
Find a suitable motor insurance policy online
Evaluate extra benefits offered
Inform insurer about shift
Be careful of new insurers
Each of these points has been discussed in the following sections.
Find a suitable Motor Insurance Policy Online
Since the coverage offered by different motor insurance companies is different from the other it is best to look at all the options available. Next, this search can be narrowed down by looking at specific features and the policy period.
It is always advisable to select an annual insurance plan since it is a safe option and cost effective at the same time. Create a list of the features provided by each insurer and compare them and shortlist a few insurance plans.
Spend time on research since the devil in the detail and cross-check to verify facts, figures, and it will be helpful to read reviews posted by other customers. This way, one can gather information about the deductible, premium amount, actual coverage plan, and other details that might not be clearly specified on the websites of insurance companies.
Ensure that you select vehicle insurance online only after finding out as much as one can about the insurance policy.
Evaluate Extra Benefits Offered
Next, one needs to look at the additional benefits that are being offered by the insurance company. For instance, look at the customer care service provided whether it will be available around the clock or not, would road side assistance be offered with the insurance cover, or any other rider added as extra benefits with the coverage plan.
Inform Insurer about Shift
If a policyholder is planning to shift to another insurance company remember to keep the current insurer in the loop. This is essential because the existing insurer may offer better offers to retain the policyholder.
Apart from that it will give the insurance company a head start on terminating or transferring the insurance policy, if applicable. This way, policyholders can avoid delays caused due to paperwork and can have everything ready before purchasing a new policy, for instance.
Be Careful of New Insurers
If one wants to invest in a new insurance company or a lesser known one it is important that one evaluates the financial strength, performance, and experience while researching for vehicle insurance online. Ask friends and family about the insurance company as well as online motor insurance reviews will be helpful indicators of whether the insurance company is trust worthy or not.
What is Temporary Motor Insurance?
Most people are unaware about the concept of temporary motor insurance because it is not one of the most talked about insurance policies. However, as the name suggests, these motor insurance plans are useful for policyholders particularly during crisis situations.
At IFFCO Tokio, we offer these short-term motor insurance policies.This allows customers to understand the coverage and level of service before signing up for an annual or multi-year motor insurance.
Ideal Option for New Drivers
A temporary insurance plan is a good option for new drivers; say those living with their parents. For this reason, for those who started driving or schedule to drive a vehicle for a short-time period, this is the best option to go in for.
Excellent Option for Those on Vacation and Borrow a Motor Vehicle
Another group of people benefitted by these short-term insurance plans are for people who are on vacation and borrow a motor vehicle. This way, details like places to drive, mileage clocked, the time spent on driving, to name a few are things that insurance companies factor in while setting the premium rate and making the final offer.
For example, for those who do not drive often will pose low risk and will be asked to pay a lower premium while those people who travel constantly are at high risk of meeting with an accident and have to pay a higher insurance cover. Also, those who opt for insurance policies annually risk data that is based on the average data and not actual an accurate data for which a higher premium amount has to be paid.
So, while one is planning to invest in an insurance policy and would prefer to receive a monthly bill this is the best option. Also, if one works out the cost it will be almost the same amount as any other insurance policy.
The insurance premium is one of the essential factors that determine whether a policyholder will select an insurance policy or not. There is not much difference in the policies offered to men and women; that depends on the make and model of the motor vehicle.
Motor vehicles with a lot of horsepower like sports cars, high performing vehicles, luxury vehicles, SUVs, and other technology features or a record of theft can increase premium amount for these high-end models.
A thumb rule that must be used while buying vehicle insurance online is to select cost effective plans. Use the Internet to conduct extensive research information to give policyholders extensive benefits and coverage for a variety of insurance plans that prove to be rewarding in the long run.
Type of Vehicle
An important aspect to be considered while selecting motor insurance online is the type of vehicle for which coverage is being sought. The premium will depend on the motor vehicle’s model and make that may be prone to accidents or hazards.
In case the motor vehicle is well-maintained, then there’s a better chance to save on the insurance premium. The safety ratings and claim history associated with the models by insurance company that would deem the vehicle safe and lower the premium amount.
An effective way to determine whether an insurance plan is best suited for the needs of the policyholder is to conduct a comparative study. Compare the options offered by different insurance companies.
In this way, the policyholder can assess and evaluate the different options and find benefits and discounts available on vehicle insurance online. This will help one negotiate a good deal like a safe driving record that would go through major pricing.
The various factors that are considered that can affect insurance premium include history of speeding, driving under the influence, and accident records. The risk posed due to such a record can lead to higher premiums.
According to research, more men are charged with DUIs than women and hence pose to be a higher risk on the road than women. This is possible because men are more likely to use high end vehicle models that are much more expensive than others that would reflect in the higher insurance rate as well.
It is important that policyholders are important as they fall into financial contingency situation causing accidental loss.
Can You Buy Motor Insurance along with the Vehicle at the Showroom?
Imagine if you could buy a vehicle and insurance all at one go, and at the same place. Well, the good news is that now it is possible now for people to purchase motor insurance online or from the dealerships themselves.
It means that vehicle owners can select insurance cover from the dealer streamlining this process for customers. Also, vehicle owners have a wide variety of options to choose from ion different price ranges that makes this deal all the more attractive.
Usage Based Insurance
Another concept that many vehicle owners are still unaware about is usage based insurance. The premium under this insurance scheme’s premium calculation matrix is based on driving habits of the driver, vehicle usage monitored live, and distance covered.
How does Usage Based Insurance Work?
The concept of Telematics is used to determine the premium to be paid by policyholders. The vehicle will be fitted with a Black Box, similar to the one on planes, which records distance and speed of the vehicle and it is a combination of information technology and telecommunication.
The data recorded by the Black Box is a smart device that uses information transmission technology over a long-distance. The information collected will be sent to the app installed in the policyholder’s motor vehicle.
User Based insurance is also referred to as pay-as-you-drive insurance, smart box insurance, GPS motor insurance, and black box insurance.
Benefits of Telematics
There are a number of benefits that are offered by telematics that include:
Real time navigation, roadside assistance, and vehicle tracking
Drivers can share real time location
Can be used to retrieve stolen motor vehicles, take better routes, and save on fuel
Policyholder is alerted if driver is breaking speed limits
Option to call for roadside assistance in case of accidents
What are Some Common Concerns about Telematics?
Some of the common concerns about telematics include:
Inappropriate data collected
Cost of device installation
As mentioned earlier, most people are unaware about this option and are reluctant to invest in the latest technology. However, early adopters on the other hand are able to reap the benefits offered by this technology.
Can Telematics Bring Down Insurance Premium?
Another question that might arise in the minds of policyholders who are thinking about switching to a better insurance policy is whether telematics can bring down the insurance premium when buying or renewing vehicle insurance online. The answer to this question is yes since it lowers the risk associated with the vehicle and can bring down the premium amount by 30 percent.
In the event that an accident takes place, telematics will alert the insurance company and report the initial loss. Data will be analyzed collected from the sensors of air bags, breaks, and other systems to estimate the severity of the damage caused.
This helps both the policyholder and the insurance company to arrive at claim amounts, improve customer relationships and take appropriate action. For example, in the event of an accident the insurance company will call a towing service, emergency medical care, and or send a vehicle to pick up the policyholder.
Do Telematics Insurance Offer Discounts to Safe Drivers?
Yes, telematics insurance offers attractive discounts to low-risk drivers who are known to drive safely as long as they adhere to a few rules and regulations. For instance, drivers who avoid driving during peak hours and drive shorter distances are likely to pay less premium amount than others.
Insurance companies will be able to able to accurately segment customers based on assessing risks. For this reason, it helps customers pay a fair premium based on their driving habits rather than a generalized insurance coverage plan. At the same time, estimate the premium with a motor insurance calculator.
What are Some of the Common Misconceptions about Motor Insurance?
There are a number of factors that determine the insurance premium amount. However, most people have some common misconceptions about motor insurance that cause multiple problems for them.
Some of the common myths include the following:
Vehicle color determines insurance cost
Minimum liability amount is sufficient
Private insurance covers business and personal use of vehicle
Someone else driving the motor vehicle is covered by the insurance policy
Review Add-Ons Riders
Each insurance plan need not have the same features as the next insurance plan. This is where add-on riders come into play.
Depending on the requirement of the policyholder specific riders can be added to the insurance plan. Some of the most popular riders include:
Third-party liability: Protects motor vehicle owner against financial liability that causes bodily harm, damage or death
Engine cover: Provides extra protection from additional expenses caused due to accidental damage
Zero-depreciation cover: Provides protection from depreciation of the motor vehicle, making the policyholder eligible for higher claims
Roadside assistance cover: Provides assistance to policyholders in case they are stranded due to vehicle breakdown, puncture, or accident
Personal accident cover: Covers costs for injury caused due to accident while driving the motor vehicle
Motor Insurance Reviews
It is always a good idea to look at reviews on insurance companies and the services that they provide. This is the best indicator of the kind of service that once can expect if they decide to select the particular insurance company.
Also, ask family and friends for their feedback to gather first-hand information about the experiences that they have had. Based on all the information gathered make an informed decision or try of an insurance plan while it is free during the grace period.
Compare Premiums Online
In the world of the Internet, information about insurance premiums is easily available. So, look at as many companies possible and make a note of the features and premiums offered as well as the riders that can be added.
Then compare the data that has been collected and it will be able to clear things out and make the decision more clear.
Another important aspect that one should take into consideration is CSR or Claim Settlement Ratio. CSR indicates the percentage of how many claims were settled by the insurance company.
At IFFCO Tokio, we have an impressive 92% Claim Settlement Ratio, which makes us the industry leaders in this regard. With a simple, step-by-step claim process and proactive settlement of claims, IFFCO Tokio motor insurance policies are a preferred choice of motor insurance buyers in India.
**To understand exactly about the policy coverage, exclusions etc, please read the Policy Wording carefully.**