Care for your wheels while protecting your ride
All vehicle owners carry the most important document in their vehicle: the insurance papers. Its motive is to provide full protection against any damage or loss endured by the insured vehicles from any forms of natural calamities as well as man-made ones. Apart from that, we have to note the damage caused for any third party from our fault too. The insurance companies provide covers for the third-party liabilities also which might arise due to any accidental injury, damage, or death of a third party.
Motor Insurance gives covers starting from two-wheelers, four-wheelers to even commercial trucks and most other road vehicles. The main objective is to give financial protection against damage occurring to vehicles in an unforeseen accident. Unlike other insurance policies, this is the highly mandatory insurance for vehicles like cars, bikes, scooters, even big trucks on all types of roads in India. Commercial vehicles also get covered by many insurance companies in India.
Motor Insurance- Main Attributes
Some of the eye-catching features provided by the insurance companies are listed below.
- Motor insurance covers you from theft, fire damage, man-made disasters, vandalism etc. apart from the cover provided for damage caused by an accident.
- Online Motor Insurances are easy to buy and renew without any hassles.
- Cashless claims will be provided if you can present enough evidence in cases like accidents and thefts.
- Insurance companies in India provide a No Claim Bonus (NCB) offer for policies that don’t raise any claims during the policy period. For these policies, the insurance companies will provide a special discount on purchasing an add-on feature to the existing policy or even on the yearly premium itself. It varies in each company.
Types of Motor Insurance – Which one is for you
The insurance policy of your vehicle depends on what vehicle you own. Basically, there are three types to discuss
- Two-wheeler Insurance – This insurance provides cover for bikes and scooters. However, the premium of the policy will depend on the age of the two-wheeler like its model, registration year, etc.
- Car Insurance – This provides cover against accidental damage to your car or a third party car based on the terms and conditions. Just like the two-wheeler insurance the car insurance premium also depends on the age, make, model and year of registration of the car. Different companies offer different premium rates. So it’s best to compare plans of various insurance companies before purchasing.
- Commercial Vehicle Insurance – This helps the commercial vehicle owners or drivers to cut short the losses they might undergo due to damage to their vehicle as the vehicles are not used for personal purposes.
Why is it mandatory to have Motor Insurance in India
We are already aware that most roads in India are in poor conditions so it’s a requirement for any vehicle owner/ driver to have a proper insurance cover in place for the vehicle as it provides financial protection to you as well as the third party damages. According to WHO in 2012, India had the highest number of deaths caused due to road accidents in the world. It’s been calculated that around 4 lakh people die in road accidents every month in the world. Hence it is mandatory for your safety as well as the safety of others.
Top Motor Insurance companies in India
Insurance companies in India offer a large number of privileges like direct settlement at network garages, depreciation cover in some cases, Engine protection cover, full-time roadside assistance and even towing facility is covered. The topmost companies in India who offer the best Motor insurance covers are listed below.
- ICICI Lombard Motor Insurance
- Bajaj Allianz Motor Insurance
- ICICI Motor Insurance
- Aditya Birla Motor Insurance
- Tata AIG Motor Insurance
- HDFC Ergo Motor Insurance
- Reliance Motor Insurance
- Bharti AXA Motor Insurance
Which Motor Insurance is the best. Here is what you can choose
There are quite some exclusive covers that you can choose for your vehicle which suits best for your needs and those are briefly explained.
- Comprehensive Insurance Cover – This cover offers third party coverage along with providing cover for the insured. It protects against financial losses caused by damage or theft of the vehicle insured. It could be anything like cars, bikes, scooters, trucks and such.
- Third-Party Insurance Cover – This plan covers any third person who might’ve got injured in an accident involving the insured and his vehicle. However, the policy does not provide any cover for the insured. As per the IRDA, the insurance company cannot deny underwriting third party insurance.
- Pay as you Drive cover – This insurance policy lets the policyholder pay the premiums of his insurance as per the number of kilometres driven so far. It’s a newly introduced product in alignment with the recent guidelines of the IRDA. This offers covers for both the insured and third party cover. Currently in India, Bharti AXA, Acko General, ICICI Lombard are providing this product through their online portals and other sources.
What is motor insurance and what is covered?
Insurance policies which provide covers for vehicles are motor Insurance as discussed earlier. The policies include covers for vehicles, that might have got damaged due to Strikes or Riots, natural calamities like floods, cyclones, storms, earthquakes, landslides, fire, terrorist acts etc.
What is not covered
However, the insurance will not cover any damages if it’s caused due to the driver being under the influence of drugs, abuse or alcohol. If the damages are caused by the usage of the vehicle for illegal activities if the driver did not have a valid driving licence or any damage to the vehicle happening outside India.
Top 5 things to keep in mind while purchasing a Motor Insurance
In India, it is very compulsory to get your vehicle insured with a third-party cover plan. Hence even if you choose to buy a comprehensive plan for your vehicle which includes third party cover too, there are some things to be checked.
- Personal Accident Cover – Always check if the insurance policy you are getting provides a personal accident cover or not.
- Claim settlement Ratio – It is best to choose an insurance company that has got a higher claim settlement ratio to avoid any further hassles in case you get into any problem.
- Garage networks – Make sure your insurance company has a very reasonable number of garages in their network which will further assure you to travel in peace.
- Add ons – Under any circumstance if you are not satisfied with the cover provided by the insurance company you choose and you might have specific needs which are not mentioned in the plan, you may always choose an add on feature as an extra cover for your same policy. So many add ons are provided by various insurers.
- No Claim Bonus – This is an attractive feature where you can get a bonus or discount for keeping your vehicle safely without any claims within a year. This can be claimed from the insurance company during your policy renewals or with premiums.
Apart from all these, you should always try to maintain the financial value of your vehicle and hence you can opt for an add-on called Zero depreciation to get the best coverage after the depreciation value of your vehicle.
Online Motor Insurance Benefits
A very large number of people purchase motor insurance online to avoid any hassles. The premium rates will be lower when compared to the ones purchased offline. You have the privilege to compare different plans and choose what suits your needs as well as your budget. There are even mobile apps by most insurance companies to make your experience a smooth process.
Motor Insurance Renewal
Renewing an insurance policy online also comes packed with a lot of advantages like you get to choose from various add-ons on the website, you may even remove or add an add-on based on your change in requirement. You do not even have to visit the office to renew your policy as you are allowed to do it yourself without paying extra charges to the agents. This saves a lot of your precious time and money. The payment processes are also highly secure. The updated insurance plan will be issued in minutes by the company.
Attractive Add-on covers for your Vehicles
Apart from the normal comprehensive or Third-party insurance cover, we get a facility to purchase add-ons for the existing policy while buying it or at the time of renewal. Some are Zero depreciation cover, NCB protection cover, Roadside assistance cover, Tyre protector cover, Key replacement cover, Rim damage cover, Personal possessions cover etc.
Common FAQs
- Would I get my No Claim Bonus facility shifted if I decide to change my Motor insurance company?
Yes, Of Course, you still are eligible for an NCB even if you change your insurer at the time of renewing the policy. You may have to produce proof for the same to your new insurer though. - Is it important to inform my insurer if I install an LPG or CNG kit in my vehicle?
Yes, It is very important to inform your insurance company as well as the RTO, about any extra fittings installed in your vehicles like LPG or CNG kit so that they can issue the required modification certificate for the vehicle. The insurance company might charge an additional amount for the same as it will be considered like an add-on cover under the own damage section. - What steps do I take in case of an accident?
If your vehicle meets with any accidents, first off, you should notify the police and take snapshots immediately of your vehicle as well as the opposite vehicle involved in the accident. You have to take crucial information from the driver of the other vehicle including all insurance details to file a claim to your insurance provider so that things remain crisp and clear. The insurance company will do the rest for you.