CAR INSURANCE FAQs

What is Car Insurance? - IFFCO-Tokio

Car insurance is a contract between you and the insurer, wherein the insurance company offers extensive coverage to protect your car from every possible risk. It basically covers accidents, thefts, and any third-party liabilities based on the insurance purchased. It covers against natural and man-made calamities. It acts as a boon to the policyholder in case of emergencies.

Why do I need a Car Insurance policy?

You’re the proud owner of your car; hence it is your responsibility to protect it from potential damages that may arise due to accident, or theft. In India, it is mandatory to have Third-party Insurance to drive on roads; otherwise, it is considered a legal offence. One more reason you need car insurance policy is for the safety of others, they could be fellow drivers, pedestrians, or your passengers.

How to renew car insurance online?

Renewing car insurance online is easy. Make sure that you renew the policy within the maturity period to avoid any penalty. To renew the policy, you must follow the process mentioned below:

 

  • Visit the insurer’s website, and click on the renew option.
  • Select the insurer – just because you have purchased a policy from a insurer, you need not renew the policy from the same insurer, you are free to choose a different insurance company at the time of renewal.
  • Fill the necessary details like – policy number, vehicle registration number, personal details, etc.
  • Browse through the plans, and choose the suitable plan. At this stage, you can customise the plan. You can purchase an add-on cover or drop the riders that you had purchased previously.
  • Make the payment. You must pay the premium for the renewed policy.
  • Lastly, review the policy documents carefully and make sure that all the details are in place.
  • Be aware of the next renewal date and don’t miss renewing the policy before the maturity date.

 

Is it safe to renew car insurance online?

Yes, it is safe to renew your car insurance policy online. One of the primary concerns people have about online renewal is the safety and security of the payments. But, most insurance companies have a secured payment gateway, and the risk of losing your money is minimal.

What is the process for car insurance renewal online?

A policyholder needs to visit the website of the insurer. There they can look for policies that can be better for them. They can renew the policy by making the payment. It is important that policyholders renew their car insurance. A person can’t make any claims when the policy expires.

How do I register for a car insurance renewal online?

No matter, the type of car insurance policy you hold, it comes with an expiry date. You can renew the policy online by visiting the insurer’s website. At the time of car insurance renewal, you have the choice to change the insurer, and customise the plan to suit your needs. Your insurance will be renewed once you complete the payment. It is better to purchase a long-term car insurance policy to avoid yearly renewal. 

What documents are required for renewal of car insurance online?

A policyholder might require some documents such as identity details, address details, license details, old policy details, etc will renewing their car insurance policy online.

How to renew Four-Wheeler Insurance?

You can renew your four-wheeler insurance offline as well as online. Visit the office of the insurer for renewing the insurance offline. You can visit the website of the insurer for renewing it online.

How to renew an expired car insurance policy?

Car insurance policy can be renewed online and offline. For offline renewal, the policyholder needs to visit the office of the insurer and make the payment. For online renewal, a person can visit the website of the insurer and pay the premium.

How much does it cost to renew your car insurance?

Some of the factors that impact a car insurance premium are IDV, cubic capacity of the car, age of the car, etc. However, a policyholder can widen the scope of the coverage by purchasing add-on covers. But, when you buy riders, it will increase the premium amount. So, the cost of car insurance renewal depends on the plan you choose, and the type of vehicle you drive.

How to pay car insurance online?

Today, most insurance companies in India allow online payment for car insurance. You can choose the suitable car insurance plan you wish to buy and proceed to pay. The insurers offer several payment options to suit the buyers’ needs; you can pay through net banking, third-payment gateways, or through debit/credit card.

How to file a Car Insurance claim?

Contact the insurer and give them full knowledge about the accident. Get an FIR from the police. Record the details of the third-party driver and witnesses. A surveyor will record the damages to the car.

What documents are required to file a car insurance policy claim?

In case of accidents and damage to the vehicle, you have to present the following documents to make a car insurance claim. This includes the copy of online car policy, claim form duly signed, original repair bill, proof of release and cash receipt, valid driving license copy, valid RC copy of the vehicle, FIR (if necessary as in the case of highway accidents, theft and major third party injury or damage) and any other document that is required by the insurance company to ensure seamless settlement of claim.

What is Roadside Assistance Cover?

Roadside assistance is an add-on cover you can buy at the time of issuance of the car insurance policy. It can cover battery jumpstart, repairs, car towing, etc.

What is Zero Depreciation Cover?

Over a period, the value of cars depreciates. Car insurance pays you the claim amount after deducting the depreciation. When you purchase zero depreciation cover, the insurer offers protection without deducting depreciation.

What is IDV and how is it decided?

IDV refers to Insured Declared Value and is the maximum sum assured fixed by the insurer that is offered in case of theft or total loss of a vehicle. In short, IDV is the current market value of your vehicle. It is usually estimated based on the manufacturer’s listed selling price of the model and variant of the vehicle (including additional accessories) at the beginning of the car insurance policy. It is determined after adjusting depreciation for every year. In case your four-wheeler is stolen or ends up badly damaged to an extent that it is beyond repair, the car insurance claim amount payable is calculated based on IDV. This is why it is very essential that your vehicle is insured for the right IDV. One should utilize a car insurance calculator for the said purpose.

What is NCB and in what way does it benefit me?

The full form of NCB is No Claim Bonus. It is presented to the owner of the vehicle, who is also the policyholder. In cases when not even a single claim is made during the entire term of the policy, you are entitled to a discount on your premiums. You can avail up to 50% discount on your premiums if you consecutively do not make any claim every year. In case you do make a car insurance claim, NCB does not come into action. You can transfer NCB to your new vehicle if the vehicle is of the same class.

What is Third-party Car Insurance?

Third-party car insurance covers you against the damages caused to the third-party. The insurer will offer cover for the cost of repairs to the third-party property in case of an accident. It can also cover death and injuries to the third-party. But it will not cover damages to you and your car.

What is a third party risk policy?

This car policy is made compulsory by law. It covers the vehicle’s owner against risks according to Section 146 of the Motor Vehicles Act 1988. The main aim of this third party car insurance policy is to safeguard any third party. This insurance policy pays compensation for the damage caused to the property of a third party or death caused owing to bodily injuries of a third party. It does not include damage to your own vehicle.

What kinds of car insurance coverage exist?

There are many types of car insurance coverage. However, some policies are mandatory by law while the others are optional. The Government has made third party car insurance coverage, which covers property damage and injuries you cause to another person, mandatory. This car policy does not cover your own injuries and property damage. In certain states, personal injury protection coverage is another plan that is made mandatory. It offers coverage to pay for medical expenses that are associated with an accident, no matter who is at fault. Some of the optional coverage plans include comprehensive coverage, collision coverage, rental reimbursement coverage, and towing and labor coverage. You can purchase such a car insurance policy online these days.

Can I renew my car insurance policy online?

Yes, you can renew your car insurance policy online. Renewing your policy is easy; you just have to follow the below steps:

 

  • Enter details like car registration number, policy number, and personal details like mobile number and e-mail Id.
  • Next, choose the plan and tenure.
  • If you wish to choose any add-ons or drop any riders, you can alter your plan.
  • Finish payment.
  • Review the receipt.

 

Remember, reviewing the policy on time is important to stay protected against the damages due to accidents. Also, make sure to renew the policy on or before the due date to avoid paying any penalty charges.

I am a careful driver. Do I really need car insurance?

Regardless of whether you are careful on the road or not, four wheeler insurance is a prerequisite, after all, it is made mandatory by the law. So if you are driving without any car insurance (third party car insurance at the very least), you need to know that you are doing so illegally. The absence of a four-wheeler insurance policy means you cannot tax your vehicle. It offers coverage for you, other vehicles on the road and the general public. Use a car insurance calculator to understand how much car insurance would cost you, before buying.

What if someone else is driving my vehicle and an accident takes place?

The insurance on a vehicle is applicable even if another person is driving the vehicle, with your permission. This is because liability follows the vehicle. Generally speaking, the liability insurance of the person driving your vehicle needs to pay should the amount of the loss go above your car policy limits.

Should I make a claim for every accident or damage occurred?

It is wiser to refrain from making small claims. During the times when your vehicle is damaged, it is better to get an estimate for the repairs required. If the No Claim Bonus you have to let go of in the forthcoming year goes beyond the estimate, it makes sense not to raise a claim and pay for the damage yourself.

Is it cheaper to pay monthly or annually? Also, will my car insurance premiums get cheaper if I stay with one insurer itself?

It is always cheaper and cost-effective to pay upfront annually. When it comes to premiums getting cheaper if you hang on to a single insurer, this is unlikely, particularly in the long run. If a customer does not look around for better and most effective deals, the insurer can take advantage of the situation and may charge you higher renewal premiums.

What does a car insurance policy cover?

Own Damage to your vehicle - The policy covers you against any loss or damage caused to your car or its accessories due to natural and man-made calamities as defined in the scope of coverage.

Personal Accident Cover - The motor insurance provides you compulsory personal accident cover for individual owners of the vehicle, the personal accident cover is up to Rs. 15 lakhs. You can also opt for a personal accident cover for passengers. 

Third-Party Legal Liability - The policy covers the vehicle owner's legal liability to pay compensation for:

  • Death or bodily injury to a third party person.
  • Damage to third party property.

Which is the best car insurance in India?

This is one of the most common questions amongst buyers. It’s only natural considering that everyone wants to have the best plan. The best car insurance plan is the one that best suits your needs. Having said that, some good features to look when you buy car insurance include:

  • Higher number of network garages.
  • Higher Claim Settlement Ratio.
  • Wide Choice of Add-ons.
  • Lower Premiums.

What are the exclusions under Private Car package policies?

A car insurance policy from IFFCO Tokio does not cover the following:

  • Consequential losses, depreciation, wear & tear, mechanical & electrical breakdown, failure, or breakages.
  • Any damage to tires and tubes, unless the vehicle is also damaged at the same, the liability of the insurer will be restricted to 50% of the cost of replacement. Damages caused if the private car is driven by a person who is under the influence of intoxicating liquor or drugs at the time of loss are also excluded.
  • Claims will not be approved if an accident occurs while driving without a valid driving license or if the vehicle is being used for hire or reward, carriage of goods other than samples, racing, and other racing-related purposes and motor trade purposes.

What if I lose my policy documents?

You can get in touch with us on our toll-free number: 1-800-103-5499. Our customer care executives will guide you through the process of getting a duplicate policy document. 

Alternately, when you buy car insurance online, the policy document is emailed to you. Therefore, even if you lose the physical copy of your policy document, you can always take another printout.

What if there is an error in my policy document?

Simply contact us on our toll-free number: 1-800-103-5499 and we will help you get an endorsement made. Once we receive your endorsement request, we will make the changes and issue a revised policy document.

How do I renew my car insurance policy?

Car insurance renewal can be done online or at one of our branches. To renew car insurance online, you can visit our website or download our app on your smartphone. Either way, you will have to fill in your policy details and then simply make the payment. We will then send your renewed policy documents to your registered email id. 

Alternatively, you could visit one of our branches with your old policy documents and the premium amount for renewal. We will ensure you leave with a renewed policy and a smile on your face!