MOTOR INSURANCE
Having valid motor insurance is compulsory in India to protect vehicle owners from potential financial risks. It is the best form of security that you can acquire to prevent significant expenses that result from an accident. The Government poses the compulsion for the safety of the individuals who travel via motor vehicles daily.
What’s Covered Under Motor Insurance Policy
Accidental Damage
To your car or the belongings in the car in case of an accident
Theft/ Burglary
Insurance compensates the insured from loss incurred due to theft
Fire Damage
This damage may either be directly caused by the flames
Natural Calamities
Floods, earthquake, storm
Third Party Damage
It covers physical injuries, damages to the vehicle, damage to the property, and death.
Malicious Damage
When an unknown person/vehicle incurs damages to the parked vehicle
What’s Not Covered Under Motor Insurance Policy
While driven by a person not having valid and effective driving license
While driven by a person under the influence of intoxicating liquor or drugs
Outside the geographical area stated in the policy
In violation of “Limitation as to use” clause in the policy
War, invasion, the act of foreign enemies
Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown,failures or breakages.
Types Of Motor Insurance Policy
Be it a private car, two wheeler or a commercial vehicle, there are basically two types of motor insurance policies –
Third-party Insurance Policy :
Provides coverage only to third parties in the event of an accident or damage to any third party property. The key thing to note is that third-party motor insurance does not cover damages to the automobile itself.
Package Motor Insurance Policy :
In the event of an accident, provide wholesome coverage not just to third parties but also to the vehicle itself. The cost incurred due to the repair and replacement of damaged parts of the vehicle will be covered under the Insurance Policy.
Motor Insurance Add-On Plans
Most motor insurance companies also offer add-on covers that can enhance the coverage of the base policy. Some of these add-on plans are as described below:
Zero Depreciation Cover
It covers the amount of depreciation deducted on the value of parts replaced under own damage claim of the policy. We will pay for the first 2 claims reported to Us during the Period of insurance. This cover is available for up to 8 years old vehicle.
Engine Protect Cover
It covers repair and replacement expenses for the loss or damage to internal parts of the engine and gear box, transmission or differential assembly provided loss or damage is due to ingress of water in the engine or leakage of lubricating oil from engine
Return To Invoice (RTI) Cover
It covers the financial shortfall between the vehicle IDV and the purchase price of the vehicle in the event of your vehicle being a total loss / CTL following an accident or stolen
Loss Of Personal Belongings Cover
Cars parked in parking lots often contain some or the other personal belongings. Owners often tend to leave them behind for convenience items such as clothes and other articles of personal nature likely to be worn, used or carried
No Claim Bonus (NCB) Protect Cover
The NCB Protector protects Your Earned No claim Bonus, in the event of an Own Damage claim made for Partial Loss including claims for Windshield glass, Total Loss, and Theft of vehicle/ accessories
Key Replacement Cover
We will reimburse you for the cost of replacing your vehicle keys which are lost or stolen. Also it reimburse the cost of replacing your locks and keys if your vehicle is broken into. The covered costs include the labour cost for replacing the lock. Cover is available for all vehicle age
Roadside Assistance Cover
This ADD-ON provides you help not only in case of an accident but even during Breakdowns or if you run-out of Fuel or in case you have a Flat Tyre. They also help you in case your keys get locked inside the car.
Consumables Cover
It reimburses the expenses incurred towards consumables items used in an insured car during repairs. It provides coverage for all the consumable items used while the car like Engine oil , filter, Lubricants and oil Nut and bold, was being repaired.
Daily Allowance Cover
The Daily Allowance Cover is an add-on cover that provides travel allowance to cover day-to-day travel expenses in case the insured car is getting repaired at a garage.
Repair Of Glass, Fibre, Plastic And Rubber Parts
A claim for only glass / plastic / rubber / fibre part where you opt for repairs rather than replacement, will not affect your No Claim Bonus eligibility at the time renewal
Tyre Secure
The Tyre Protect cover reimburses any expenses incurred towards the repair or replacement of the tyres of the insured car. It ensures that the motor insurance company pays for tyre damages, such as in-tyre bulge, tyre cut, bursting of the tyre, etc.
What Is IDV In Motor Insurance?
Insured Declared Value (IDV) is the current market value of the vehicle. If the vehicle suffers total loss, IDV is the compensation that the insurer will provide to the policyholder.
IDV is calculated as manufacturer’s listed selling price minus depreciation. The registration and insurance cost are excluded from IDV. The IDV of the accessories which are not factory fitted, are calculated separately at extra cost if insurance is required for them.
How Is The IDV Of Your Vehicle Calculated?
If You Have No Added Accessories:
Your car’s IDV = car’s ex-showroom price – depreciation.
If You Have Added Accessories:
Your car’s IDV = (car’s ex-showroom price – depreciation)
+
(cost of accessories – depreciation of the accessories)
How Is The Cost Of Depreciation Calculated?
Know more about Depreciation rates for your Vehicle
NCB (No Claim Bonus)
No Claim Bonus or NCB is a reward given by an insurance company to an insured for not raising any claim requests during a policy year. The NCB is a discount ranging between 20%-50% and is given to the insured while renewing a policy. The NCB discount is offered on the premium amount during renewal. This discount is transferable and can be transferred even if the policyholder buys a new vehicle.
How To Calculate No Claim Bonus?
The No Claim Bonus is applicable from the second year of the policy period. After the first year, when no claim has been raised, your insurance provider offers you with a discount of 20% on the premium amount. This begins on second year, and this can go up to 5 consecutive years. To understand the working of a no claim bonus calculator, refer to the following table:
Benefits of NCB in Car Insurance
Gives You Positive
Rewards
The NCB is nothing, but a means to reward you for being a good and responsible driver and car owner.
Connected to you and
not your car
No matter which car you have- as long as you have been renewing your car policies before its expiry date, you can continue to benefit from a NO Claim Bonus for your car insurance
Save On Car Insurance
Premium
The benefit everyone loves! Discounts! A No Claim Bonus will save you at least 20% of your annual car insurance premium.
Easily
Transferable
In situations where you’re either changing your insurer or car, the process to transfer of your NCB is simple and hassle-free. The only thing you need to ensure is, to shift your policy before your current one already expires.
Car Insurance Claim Process
There are two types of claim processes for a car insurance policy, they are:
CAR INSURANCE CASHLESS CLAIMS :
In cashless car insurance claims, an insured does not have to pay upfront for the repairs at the network car garages of the insurance provider. It is the car insurance provider who settles the claims with the workshop on behalf of the policyholder. However, the damages must be covered in the insurance policy taken by the insured.
CAR INSURANCE REIMBURSEMENT CLAIMS :
For claim reimbursement, an insured has to pay for the repairs of the damage. And later, depending upon the terms and conditions of the car insurance policy, a reimbursement claim is made. In this type of car insurance claim, an insured does not need to get his/her car repaired at a network car garages of the insurance provider. However, the insured needs to submit the bills and repair receipts with the policy provider.
How to make Car Insurance Cashless Claims?
Follow the below steps to avail cashless claims for car insurance:
Register the cashless claim by calling the insurance provider on its toll-free number or through its website, email or mobile app.
After registering the claim, the insured receives a claim registration number which can be used for future communications/references.
Take the damaged vehicle to any of the authorized network garages of the insurance provider for repairs.
Submit all the required documents to the surveyor.
The car insurance company confirms its liability.
NOTE: In the case of a cashless claim, the damaged vehicle is repaired at an authorized garage only. And, the insurance company will settle all the bills of the garage directly.
How to file Car Insurance Reimbursement Claims?
Follow the below-mentioned steps in order to avail reimbursements claims for a car insurance policy:
Register the claim by calling the insurance provider on its toll-free number or through its website or by email.
After registering the claim, an insured receives a claim registration number which can be used for future communications/references.
Take the damaged vehicle to any car garage for repairs.
Submit all the required documents with the surveyor.
The car insurance company confirms its liability and initiates the reimbursement process.
Get A Quote
FAQs
Applying for motor insurance with Bajaj Allianz takes within minutes by using our online portal. You can fill the form through our website or using the app and submit the necessary documents to complete the application. The documents will be verified, and you will be able to choose a plan that suits your budget and finalize the vehicle insurance policy as quickly as possible.
In general, a motor insurance policy is valid for one year. After that, the vehicle owner must renew the policy before the due date without any lapse; otherwise, it will affect the NCB discounts and the premium rates.
The Proposal Form is required in the situations of:
● New business
● Other company renewal
● For transfer of interest
● To convert the Liability Only Cover to a full package policy
● Change/Substitution of the vehicle
● Modification or improvement of the vehicle during current policy or during the renewal
Cover Note is a very common phrase for insurance providers that describe the temporary documentation of the vehicle insurance. It serves as proof that you have valid insurance in advance before you get the final document. It includes the following details such as name, address, vehicle registration, the purpose of the vehicle, level of cover, policy number, expiry date, and special conditions.
IDV stands for Insurance Declared Value, which is the maximum claim the insurer pays for your vehicle when it gets damaged or stolen
The pre-inspection of the vehicle is carried out in the following situations:
● Break-in insurance
● Conversion of TP Cover to OD cover
● Covering Imported Vehicles
● Fresh Payment arrival after bounced cheque
● When an authorized person from the underwriting department comes for vehicle inspection
The endorsement is the document that serves as evidence to change a policy. It incorporates the changes in the policy terms if the customer asks for any alterations, and it’s done by approaching the Motor Insurance Company at the time of issuance.
If you wish to renew the policy, you need to submit the following documents:
● Premium Cheque
● Renewal Reply Form
● Changes needed by the customer in the new policy
● Old Policy Details
● Vehicle Registration Number
● Payment Details
● Proof of Identity
● Proof of Address and Vehicle Ownership
The Employees Compensation Act states that all workmen and their families will get paid in case an industrial accident or occupational-related disease results in an employee’s disablement or sudden death.
When such an unfortunate event appears where you hurt someone physically, and it results in death, the third-party insurance coverage pays for the loss of the other party to unlimited liability as compensation, which is usually decided by a court law.
After the enactment of the Motor Vehicle Insurance Act, the convoluted insurance cases and the increasing incidence of fraud can be handled with better efficiency by the judiciary. Judiciary will help clear the backlog while serving natural justice.
Under the premise of third party insurance, the third party gets the benefits and damage cover. The third is the beneficiary who is other than the other two parties involved in the transaction. Under the Motor Insurance Policy, the insured needs to get additional third party insurance as it is not covered under the comprehensive insurance policy.
Negligence refers to the breach of the preset duties that results in an injury or damage to the entities. Out of the two types of negligence, the contributory negligence happens when the injured himself has contributed to the damages done to the other party. The accidents happening due to another party and the injured is not directly involved in the event come under composite negligence.
Yes, if you have accumulated the no claim bonus from the previous insurance vehicle company then the NCB benefits can be transferred to the Bajaj Allianz Motor Insurance. However, you will only get 90 days to transfer the benefits.
The first thing that you need to do is register an FIR with the nearest police station on the place from where your vehicle is stolen. Then you can stake a claim with the insurance company. However, for the same you need to submit several requisite documents including the FIR and claim documents. You can submit a claim online, ask the representative, or give us a call.
There are no special conditions to buy a motor insurance policy. If you have a vehicle in your name which is acquired legally, then you are eligible to get any sort of motor insurance policy from Bajaj Allianz.
The motor insurance policy India works under a simple and effective system. Initially, the buyer gets an insurance policy from the insurer and in case the vehicle gets damaged the policyholder can put a claim and wait for the insurer to verify it and then approve it subsequently. The insurance company settles the claim as per the terms and conditions set forth during purchase.
Where it is possible to switch to another insurance plan and also get the services from a different insurer, it cannot be done in case you already have an insurance policy. You can change between the policies and the provider during renewing the policy.
The online insurance purchasing process is one of the fastest and the easiest ways to get insurance. It can only take 3 to 5 minutes to buy vehicle insurance online. But, you need to conduct your research before buying a plan.
Under the motor insurance policy cover the insured can get;
● Cover for damages to their own vehicle.
● Personal accident cover
● Personal accident cover for passengers
● Death or body injury of the third person
● Damage to third party property
Under the online vehicle insurance policy, the users can get cover for electrical or electronic accessories, but with an additional add-on cover in addition to the existing insurance policy.
There are concessions allowed for the specially designed and modified vehicles for the blind, handicapped or other specially abled individuals. So, these individuals can buy motor insurance policy online at lower premiums.
Under the motor insurance policy in India, the additional PA covers include;
● PA to the owner driver and paid driver. Other than this, you can also get PA cover for the unnamed occupants and named occupants.
It is possible to transfer the vehicle insurance in the name of another person. However, it can be done only within 14 days after transferring the vehicle from the date of transfer. In case the existing owner buys a new car and wishes to transfer the insurance to the new vehicle, then the owner of the transferred vehicle has to get a new online motor insurance policy.
No, as per the new IRDAI regulations, multiple vehicle owners can take a standalone personal accident cover when they buy motor insurance.
Under the no fault liability motor insurance policy, the claimant does not need to prove his or the vehicle’s default or neglect in case of an accident. The new motor insurance act has also increased the compensation of the no fault liability vehicle insurance claim to 5 lakh in case of death and 2.5 lakh in case of injury. Under the fault liability, the claiming has to prove negligence and default to get the insurance benefits.
Under the long term insurance policy the insured can claim all the benefits of third party vehicle insurance coverage pertaining to the vehicle. Added to this, under this insurance cover, the insured benefits from the immediate commencement of the risks ensured under the policy. The long term online motor insurance policy can be taken for three years for a car and five years for a two-wheeler.
As per the rules, the personal accident cover covers the damages and injuries incurred by the owner-driver. In case, there is another driver of the vehicle, then the insured has to buy an additional personal accident cover which invites an additional premium.
To calculate the IDV of the vehicle, we need to look at three things;
● Manufacturer’s listed price car price (according to brand and model)
● The commencement of the vehicle insurance policy (new or renewal)
● Depreciation
In the calculation of the IDV of the vehicle, the side cars and other accessories should not be included in the listing price.
A lot of things go into the calculation of the vehicle insurance premium.
● Type
● Make
● Usage (kilometers driven)
● Cubic capacity
● Registration date and place
● Past claims
To make sure that you end up paying the most cost-effective vehicle insurance policy premium, start by comparing different offers and insurance plans. Other than this, not claiming the insurance benefits for the entire term will also help reduce the premium for the next policy. Lastly, vehicles with safety devices and drivers with a better driving record will end up paying lower premium.
Car insurance premiums attract 18% GST. Earlier under the regime of the Service Tax, the insurance premium was 15%. But as per the GST regime, the users will end up paying 3% higher tax than the previous scheme.
Apart from taking care of the injured person and not panicking, you need to secure the accident spot and take enough pictures of the vehicle and the injured individuals. Inform the police and do not run away from the accident spot as it may lead to the admittance of guilt and lead to putting a comprehensive claim on your policy. By following the process you have the chances to invite a contributory claim.
Under the Motor Insurance policy, you will not receive the benefits for damages caused due to:
● Breakdown (mechanical and electrical)
● Soiled condition of the vehicle due to the age
● Depreciation and consequential loss
● Losses occurring due to deliberate accidents
● Losses due to driving under influence
● Damages occurred due to driving without a license
Grace period refers to the extension provided by the insurer to the insured in case the latter does not pay the premium on time. However, the insured cannot claim during the grace period as there is no coverage provided in the grace period.
The ideal time to settle the claim provided by an insurance company provider is 14 to 28 days. But it also depends on the circumstances and the existing conditions of the claim.
In case your vehicle insurance expires, you are advised to get a new policy immediately. It is not allowed to drive on the roads in India without an insurance policy. The best practice is to renew your insurance policy before it expires, but you can start it again after expiration.