All Your Queries Regarding Car Insurance, Companies
Car insurance companies policy covers all types of vehicles plying on public roads such as:-
- Private cars
As per the Motor Vehicles Act, 1988 it is mandatory for every owner of a vehicle plying on public roads, to take an insurance policy, to cover the amount, which the owner becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury or damage to property. A Certificate of Insurance must be carried in the vehicle as a proof of such insurance.
Two types of covers are available:
- Liability only policy. This covers third party liability for bodily injury liability and/or death and property damage. Personal Accident cover for Owner-driver is also included.
- Package policy. This cover loss or damage to the vehicle insured in addition to (1) above.
No- claim discounts are available on renewal of the policy, ranging from 20% to 50%, depending upon the type of vehicle and the number of years for which no claim has been made.
Liability Only policies:
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.
Liability is covered for an unlimited amount in respect of death or injury and damage to third party property for Rs.7.5 lacs under Commercial vehicle and private and Rs. 1 lakh for Scooters / Motor Cycles.
In addition to the coverage under liability only, this policy covers loss or damage to the insured vehicle and its accessories due to:
- Fire, explosion, self-ignition or lightning.
- Burglary, housebreaking or theft.
- Riot and Strike.
- Malicious Act.
- Terrorist Act.
- Earthquake (Fire and Shock) Damage.
- Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone and Hailstorm.
- Accidental external means.
- Whilst in transit by road, inland waterway, lift, elevator or air.
- By landslide/Rockslide
The policy also pays for towing charges from the place of accident to the workshop up to a maximum limit of Rs.300/- for Scooters/Motorcycles and Rs.1500/- for cars and commercial vehicles. It is also permissible to opt for higher towing charges subject to payment of extra premium.
A restricted cover is also available covering the risk of Fire and/or Theft only, in addition to the compulsory cover granted under “Liability Only Policy”. However the same is not available in case of vehicle ratable under Class D, Tariff for Miscellaneous and special types of vehicles.
The important exclusions under the policies are:
- Wear and tear, breakdowns
- Consequential loss
- Lose when driving with invalid driving license or under the influence of alcohol.
- Loss due to war, civil war, etc.
- Claims arising out of contractual liability.
- Use of vehicle otherwise than in accordance with `limitations as to use ‘ (e.g. private car being used as a taxi)
Rating depends upon the following factors:
- Cubic capacity
- Geographical zone
- Age of the vehicle
- GVW of in case of commercial vehicles
- Add on Covers
Add on Covers
The policy can be extended to cover the following risks on payment of additional premium:
- Loss or damage to accessories fitted in the vehicle such as stereos, fans, air-conditioners, etc.
Personal accident cover under private car policies for:
- Paid driver
- Legal liability to employees.
- Legal liability to non-fare paying passengers in commercial vehicles.
Who can take the policy?
Any vehicle owner whose vehicle is registered in his/her name with the Regional Transport Authority in India.
How to select the sum insured?
The sum insured of a vehicle in a Motor Policy is referred to as the I.D.V., which stands for Insured’s Declared Value.
In case of theft of the vehicle or if the vehicle is totally damaged and beyond repairs in an accident, the claim amount payable will be determined on the basis of the IDV. The IDV of the vehicle is to be fixed on the basis of manufacturer’s listed selling price of the brand and model of the vehicle proposed for insurance at the commencement of insurance/renewal and adjusted for depreciation as per schedule.
IDV of the vehicle which is beyond 5 years of age and of obsolete models of the vehicles (i.e. models which the manufacturers have discontinued to manufacture) is to be determined on the basis of an understanding between insurance.
Car Companies Policy How To Claim
In the event of an incident giving rise to a claim under the policy, the following steps should be taken,
In case of accidental damage to the vehicle:
- Immediate intimation to the nearest office, which will issue a Claim Form.
- Claim Form duly filled in to be submitted along with a copy of Registration Certificate and driving license of the driver of the vehicle at the time of the accident as also estimate of repairs.
- The vehicle will be surveyed by a Surveyor, appointed by the insurance company, who shall submit his report to the company. In case of major damage to the vehicle, a spot survey, at the site of the accident, would also be arranged by the company.
- Final bills/cash memos are to be submitted duly signed by the insured.
- Salvage of the damaged parts may be required to be deposited with the insurance company after approval of the claim.
In case of theft of the vehicle:
- Lodge an F.I.R. with the police immediately.
- Inform the policy issuing office with a copy of FIR.
- Submit the Final Police Report as soon as it is received.
- Extend full cooperation to the surveyor and/or investigator appointed by the company.
- After approval of the claim by the company, get the Registration Certificate transferred in the name of the company, hand over the keys of the vehicle, submit a letter of Subrogation and Indemnity on stamp paper duly notarized.
In case of liability claim:
- Inform insurance company immediately of any incident likely to give rise to a liability claim.
- On receipt of summons from Court, the same should be sent to the company immediately.
- Claim Form duly filled in along with copies of Registration Certificate, Diving License, Rs. 25,000/- in the event of death and Rs. 12,500/- for grievous hurt…
Here is a list of question and answer car companies
What are the policies available for covering the vehicles?There are two policies: Motor Liability Only Policy and Motor Package Policy.
Is it mandatory to have insurance for plying vehicles on the public place?As per the Motor Vehicle Act, it is mandatory to have Motor Liability only Policy for covering Third Party.
What is covered under Liability Only Policy?Owners’ liability towards Third Party Personal Injury and Property Damage.
What does Motor Package Policy Cover?This type of policy covers all the risks covered under Motor Liability policy plus loss or damage caused to the vehicle due to:Accident, Fire, Explosion, Self Ignition, Lighting, Burglary, House Breaking, Theft, Riots & Strikes, Earthquakes, Flood, Typhoon, Hurricane, Storm, Cyclones, Malicious Acts, Terrorism, Transit by rail/road, air and waterways and also include towing charges.
What are the exclusions under Package Policy?Damage caused due to:The driver is under intoxication, Vehicle being driven by a person not holding an effective valid license, Damage to tires (unless the vehicle is damaged at the same time), Wear and tear and mechanical breakdown damages.
What are the documents required at the time of claim?Copy of claim intimation given to insurer with xerox copy of policy and premium receipt, duly filled Claim Form, Driving License, Registration Certificate of Vehicle, Estimate of repairs from repairer and stamped receipt, Bills and Cash Memo of repairs, verification of road tax, Police Panchanama/FIR, Permit and Fitness Certificate and any other documents deem feet for the situation.
Can the amount be paid directly to the repairer?Yes – In case of Approved GarageNo – In case of any other Garage
What is the amount I have to bear?Compulsory excess, Reasonable value of salvage if not surrendered to insurer and depreciation.
What is “No Claim Bonus”?It is a special discount given on premium for every claim-free year.
What is the Solatium Fund Scheme?It is the Scheme formed by the Central Govt. to provide compensation to the victims of “Hit and Run ” motor accident. The amount of compensation is Rs. 25,000/- in the event of death and Rs. 12,500/- for grievous hurt