Motor Insurance
Motor insurance provides financial protection to vehicle owners in the event of an accident, theft, or unfortunate and unpredictable vehicle accidental damage. The primary benefit of motor insurance is that it can help cover the cost of repairs or replacement of a damaged or stolen vehicle, which can be pretty expensive. Additionally, motor insurance can cover bodily injury or property damage caused to third parties and properties damaged in a mishap, which can help protect the policyholder from legal and financial consequences.
By purchasing motor insurance, vehicle owners can have peace of mind knowing that they are protected from unforeseen accidental circumstances that can be costly and stressful otherwise.
Importance of Motor Insurance: Besides the insurance part, it is mandated by the Motor Vehicles Act which requires every private and commercial vehicle to be insured. Non-compliance with the regulation can result in monetary penalties and other actions against vehicle owners.
Why should you buy Motor Insurance Online
Motor insurance is a necessity for Indian motorists due to the high number of accidents and the poor conditions of India's roads. Motor insurance gives financial protection not only to you but also covers third-party damages. A few reasons why you should get your vehicle insured:
Quick Processing
Buying online motor insurance is the fastest way to get your vehicle secured. In general cases, the requirement for physical inspection is also eliminated.
Hassle-Free KYC
Online motor insurance facilitates hassle free KYC and paperless onboarding. The policy comes into effect instantly, thereby providing smooth experience to the vehicle owner.
Transparency and Low Premiums
Buying online motor insurance leads to lower premium as the entire system is quite transparent.
Easy Comparison
It is possible to compare quotes from one company to the other, thereby giving complete freedom in the hands of the vehicle owner.
Legal
It is mandated by authorities and regulations. Driving a vehicle without proper insurance can lead to hefty fines and criminal proceedings against the owners.
Financial Safety
In case of any mishap, these insurance policies provide significant protection to the insured as well as third parties/properties involved.
Convenience
Insurance and compliance with legal requirements provide assurance to the owners about any future events.
Motor Insurance Products Include
There are 4 types of popular Motor Insurance Plans which offer the following coverage:
Third-Party Insurance covers the policyholder against damages or losses caused to third parties, such as pedestrians, other drivers, or property, due to an accident involving the insured vehicle. Third-Party Insurance policies are mandatory by law in India and provide financial protection to the policyholder against legal and financial consequences.
- Liability Coverage- Third-party insurance provides coverage for liability arising from damage or injury caused to third-party property or individuals.
- Legal Compliance- It is mandatory to have third-party insurance in most countries to drive a vehicle on public roads.
- Cost Effectiveness- Third-party insurance usually has lower premiums compared to comprehensive insurance policies as it only covers damages caused to third-party property or individuals.
- Bodily injury liability- Coverage for any bodily injuries caused to third-party individuals in an accident with the insured vehicle.
- Property damage liability- Coverage for damages caused to third-party property, such as other vehicles, buildings, or other structures.
- Legal expenses- Coverage for any legal expenses that may arise due to an accident involving the insured vehicle.
- Damage to the insured vehicle- Third-party insurance does not provide coverage for damages caused to the insured vehicle in an accident.s
- Personal injury- Any injuries sustained by the policyholder or the driver of the insured vehicle are not covered under third-party insurance.
- Acts of nature- Third-party insurance may not provide coverage for damages caused due to natural calamities such as floods, earthquakes, or storms.
- Theft or fire- Third-party insurance does not provide coverage for theft or fire damage to the insured vehicle.
- Optional add-ons- Any additional coverage, such as personal accident cover, add-ons for passenger coverage, or roadside assistance, are not included in the basic third-party insurance policy and need to be purchased separately.
Comprehensive Vehicle Insurance is a type of motor insurance that provides extensive coverage against damages or losses caused to the insured vehicle due to accidents, theft, natural calamities, and other unfortunate events. Unlike third party only insurance, this category of insurance not only covers expenses of any damage to the vehicle but also takes care of any third-party related obligations which might arise in case of an accident or mishap.
- Extensive Coverage- Comprehensive Vehicle Insurance provides coverage for damages or losses caused to both the insured vehicle and third-party property or individuals.
- Customizable Policy- Comprehensive policies can be customized to suit the specific needs of the vehicle owner by adding optional add-ons such as personal accident cover, roadside assistance, and passenger coverage.
- Higher Premiums- Comprehensive policies usually have higher premiums compared to third-party insurance policies due to their extensive coverage.
- Optional Deductibles- The policyholder can opt for voluntary deductibles to reduce the premium amount.
- Own Vehicle Damage- Comprehensive Vehicle Insurance covers damages caused to the insured vehicle due to accidents, theft, natural calamities, or other unfortunate events.
- Third-Party Liability- Comprehensive policies also provide coverage for damages caused to third-party property or individuals due to an accident involving the insured vehicle.
- Personal Accident Cover- Optional add-ons like personal accident cover can provide financial protection against injuries or death sustained by the policyholder or passengers.
- Roadside Assistance- Another optional add-on, roadside assistance, provides coverage for on-site repairs or towing services.
- General Wear and Tear- Comprehensive Vehicle Insurance does not cover damages caused due to general wear and tear of the insured vehicle.
- Driving without a Valid License- Any damages caused while driving without a valid license or under the influence of alcohol or drugs are not covered under the policy.
- Mechanical or Electrical Breakdown- Comprehensive policies do not provide coverage for damages caused due to mechanical or electrical breakdowns of the insured vehicle.
- Depreciation- The insurance company deducts the depreciation value of the insured vehicle while settling the claim amount.
- Damage Outside of Geographical Limits- Comprehensive Vehicle Insurance does not provide coverage for damages caused outside the geographical limits mentioned in the policy.
Own-Damage Vehicle Insurance is a type of insurance policy that provides coverage against damages or losses incurred by the vehicle owner's vehicle. It is also known as a standalone car insurance policy. Unlike Third-Party Insurance, it provides coverage for both third-party liabilities and damages to your own vehicle.
- Affordable premiums- The premiums for Own-Damage Vehicle Insurance are relatively lower than comprehensive insurance policies.
- Customizable coverage- Policyholders can choose from a range of add-ons to customize their insurance coverage as per their requirements.
- Easy claim process- The claim process for Own-Damage Vehicle Insurance is quick and hassle-free.
- No-Claim Bonus- Policyholders can avail of a No-Claim Bonus discount on the premium for every claim-free year.
- Accidents- Own-Damage Vehicle Insurance covers damages caused to the policyholder's vehicle due to accidents, such as collision or overturning of the vehicle.
- Natural calamities- The policy provides coverage against damages caused by natural calamities such as earthquakes, floods, cyclones, storms, and landslides.
- Theft- Own-Damage Vehicle Insurance also covers the loss of the insured vehicle due to theft or burglary.
- Man-made disasters- Policyholders can claim for damages caused to their vehicle due to man-made disasters such as riots, strikes, and terrorist attacks.
- General wear and tear- Own-Damage Vehicle Insurance does not cover damages caused by general wear and tear or ageing of the vehicle.
- Mechanical or electrical breakdowns- Any damages caused by mechanical or electrical breakdowns are not covered under this policy.
- Driving under the influence of alcohol or drugs- Any damages caused while driving under the influence of alcohol or drugs are not covered under Own-Damage Vehicle Insurance.
- Driving without a valid license- Any damages caused while driving without a valid license are not covered under this policy.
Pay as You Drive Insurance is a type of insurance policy that calculates the premium based on the distance the policyholder drives. Pay as You Drive Insurance policies are ideal for vehicle owners who do not drive frequently or for long distances and can help them save on insurance costs by paying only for the distance covered.
- Usage-based insurance policy- Pay As You Drive Insurance is a usage-based insurance policy that allows the policyholder to pay premiums based on the number of kilometers driven.
- Financial benefits- The policyholder can save on premiums if they drive less, as the premium amount is directly proportional to the number of kilometers driven.
- Better driving habits- Pay As You Drive Insurance also promotes better driving habits, as the policyholder is incentivized to drive carefully to save on premiums.
- Accidents- Pay As You Drive Insurance covers accidents that cause damage to the policyholder's vehicle.
- Theft- The policy also covers the theft of the insured vehicle.
- Natural calamities- Pay As You Drive Insurance provides coverage against damages caused to the vehicle due to natural calamities like earthquakes, floods, etc.
- Regular wear and tear- Pay As You Drive Insurance does not cover regular wear and tear of the vehicle due to usage.
- Intentional damages- Any intentional damages caused by the policyholder to the insured vehicle are not covered under this policy.
- Driving under influence- Damages caused to the insured vehicle while driving under the influence of drugs or alcohol are not covered under this policy.
Third-Party Insurance vs. Comprehensive Insurance vs. Own Damage Insurance vs. Pay as you drive insurance
| Insurance Type | Third-Party Insurance | Comprehensive Insurance | Own Damage Insurance | Pay as you Drive Vehicle Insurance |
|---|---|---|---|---|
| Coverage | Covers third-party liability only | Covers both own damage and third-party liability | Covers own damage only | Covers own damage and/or third-party liability based on distance driven and driving habits |
| Premium | Lowest premium among the three | Highest premium among the three | Moderate premium | Premium is based on distance driven and driving habits |
| Legality | Mandatory by law | Not mandatory but highly recommended | Not mandatory but highly recommended | Not mandatory but can be a cost-effective option for drivers who do not use their vehicles frequently |
| Additional Features | Minimal additional features | Additional features such as roadside assistance, zero depreciation, etc. | Some additional features such as engine protector, accessories coverage, etc. | Encourages safe driving habits and rewards responsible driving with personalized premiums |
| Who should choose it? | Drivers with low-value vehicles and those on a tight budget. It is quite critical for a commercial vehicle | Drivers with high-value vehicles and those who want complete protection | Drivers with moderate-value vehicles who want basic protection | Drivers who want to pay premiums based on their driving habits and usage of the vehicle Can be quite beneficial for commercial vehicles |
Motor Insurance Coverage Inclusions
Here are is a list of general inclusions in a motor insurance policy:
Third-party liability
All types of motor insurance policies provide coverage against third-party liability. This means that if you cause damage to someone else's property or injure someone with your vehicle, the insurance policy will cover the costs of damages or medical expenses.
Own-damage coverage
Comprehensive and Own Damage Insurance provide coverage for damages to your own vehicle due to accidents, theft, or natural calamities like floods, storms, etc.
Personal accident cover
This coverage provides financial protection in case the policyholder is injured or dies in an accident while driving the insured vehicle. It usually includes coverage for the driver as well as passengers.
Loss or damage to accessories
Many policies provide coverage for loss or damage to the accessories installed in the insured vehicle, such as music system, GPS, etc.
Engine protection
Some comprehensive policies offer coverage for damage to the engine of the insured vehicle due to water ingression, oil leaks, or hydrostatic lock.
No-claim bonus (NCB)
If the policyholder doesn't make any claims during the policy period, they are entitled to a no-claim bonus, which is a discount on the premium payable for the next policy period.
Depreciation cover
This coverage provides protection against depreciation of the value of the insured vehicle and can be included in the comprehensive policy.
Roadside assistance
Comprehensive policies may include coverage for roadside assistance, which provides help in case of a breakdown or other emergency situations while driving.
Motor Insurance Coverage Exclusions
The policy coverage for motor insurance has the following typical exclusions, which apply to the motor insurance products offered by all insurance providers
Driving without a valid license or under the influence of drugs or alcohol
Using the vehicle for illegal activities or racing
Wear and tear, mechanical or electrical breakdown, and consequential loss
Damage caused to the vehicle when driving outside the geographical limits specified in the policy
Damage caused by war, mutiny, nuclear risks, or any other act of foreign enemy
Damage caused by terrorist activity or any other malicious act
Damage caused due to natural calamities such as floods, earthquakes, hurricanes, etc. (unless specifically covered under the policy)
Damage caused by drivers not listed on the policy
Damage caused by drivers whose License has been suspended or cancelled
Any damage caused due to gross negligence or wilful misconduct of the vehicle owner/driver.
Parameters Affecting Vehicle Insurance Premium
Age of the vehicle
Older vehicles are generally charged lower premiums than newer ones due to their lower market value.
Type of vehicle
Premiums can vary based on the make and model of the vehicle. Luxury cars or high-end sports cars are charged higher premiums due to their higher market value and repair costs.
Geographical location
The location of the insured vehicle can impact the premium, with higher rates charged for areas with higher rates of theft, accidents, and natural disasters.
Purpose of use
The way the vehicle is used, such as for personal or commercial purposes, can impact the premium. Commercial vehicles are generally charged higher premiums due to higher risks associated with their use.
Driving record
A driver with a clean driving record is considered less risky and may receive lower premiums, while a driver with a history of accidents or traffic violations may be charged higher premiums.
Deductibles
The amount of deductible chosen by the policyholder can impact the premium. A higher deductible means a lower premium, but also means the policyholder will need to pay a higher amount in case of a claim.
Add-on covers
The premium may increase if the policyholder opts for additional add-on covers such as zero depreciation, engine protector, or personal accident cover.
Procedure for Filing a Claim
Claim for own damages
- Inform the insurer immediately after the accident and file an FIR with the police (if required)
- Take photographs of the damaged vehicle and submit them to the insurer
- Submit a duly filled claim form along with a copy of the driving License and the RC of the vehicle
- Provide an estimate of the repair costs and any other relevant documents requested by the insurer
- Wait for the surveyor to inspect the vehicle and provide an assessment report
- If approved, the insurer will authorize repairs, and the policyholder will have to pay the deductible or any other amount not covered under the policy
- After completing the repairs, submit the bills and receipts to the insurer for reimbursement.
Claim for theft of the insured vehicle
- File an FIR with the police immediately after discovering the theft and inform the insurer
- Submit a copy of the FIR, the driving License, and the RC of the vehicle to the insurer
- Wait for the surveyor to inspect the vehicle and provide an assessment report
- If the claim is approved, the insurer will provide compensation based on the Insured Declared Value (IDV) of the vehicle
- The policyholder may have to provide additional documents or information requested by the insurer.
Claim for third-party liability
- Inform the insurer immediately after the accident and file an FIR with the police (if required)
- Take photographs of the damaged vehicle and submit them to the insurer
- Provide details of the third party involved in the accident, such as name, contact details, and vehicle registration number
- Submit a duly filled claim form along with a copy of the driving License and the RC of the insured vehicle
- Wait for the surveyor to inspect the vehicle and provide an assessment report
- If the claim is approved, the insurer will provide compensation for the third-party damages and the legal expenses incurred by the policyholder
- The policyholder may have to provide additional documents or information requested by the insurer.
Documents you need to obtain Motor Insurance
Here is a list of documents you need to obtain motor insurance in India:
- Registration Certificate (RC) of the vehicle
- Driving License of the vehicle owner/driver
- Previous Insurance Policy (if applicable)
- Vehicle Inspection Report (for new vehicles or in case of lapsed insurance policies)
- Aadhaar Card or PAN Card of the vehicle owner.
Why should you choose Policy Leader
Experience in Motor Insurance (10 years in this business)
At Kataria Insurance Brokers Pvt. Ltd and Policy Leader, we have over 10 years of experience in the motor insurance industry. Our team of experienced professionals has in-depth knowledge and expertise to help our customers make informed decisions about their insurance needs. We have helped countless customers find the best insurance policies at the most cost-effective prices.
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Customized Individual recommendation
We understand that every customer has unique insurance requirements. At Kataria Insurance Brokers Pvt. Ltd and Policy Leader, our team takes the time to understand our client's specific needs and recommends a customized insurance solution that fits their budget and coverage requirements. We offer the best insurance quotations and help our customers compare insurance policies from multiple insurers to ensure they find the policy that is right for them.
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Quick and Hassle-Free Insurance Renewal
We value our customers' time and offer a quick and hassle-free renewal process for their motor insurance policy. Our customers can easily renew their policies with a few clicks online or a phone call.
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Dedicated Claim Support
At Kataria Insurance Brokers Pvt. Ltd and Policy Leader, we provide prompt assistance and support to our clients during the claim process. Our dedicated team of professionals guides our customers through the entire process, from filing the claim to receiving the settlement amount. We work tirelessly to ensure our clients receive the compensation they deserve.
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Multiple Insurers Under One Roof
We work with multiple insurers and offer a range of motor insurance policies, ensuring our customers have various options to choose from. Our expertise in the industry and our status as leading insurance brokers in Gujarat allow us to provide our clients with the most comprehensive motor insurance solutions.
Read More...Choose Kataria Insurance Brokers Pvt. Ltd and Policy Leader for the best insurance quotations, customized insurance solutions, quick and hassle-free insurance renewal, dedicated claim support, and a range of insurance policies to choose from.
