Make Your Ride Safer With Motor Insurance
Driving a car or riding a two-wheeler is a luxury that many people partake of daily. With higher expendable incomes, it has now become easier for most households to afford a vehicle of their own. Owning a motor vehicle undoubtedly reduces the hassle of transportation and minimizes the stress of commuting. However, with the ownership of an automobile comes the added responsibility and necessity of protecting your vehicle from any unwanted mishaps. Moreover, the higher costs of repair and spare parts can certainly burn a hole in your pocket. That is exactly why having an appropriate motor insurance is crucial. It is simply indispensable.
What is Motor, Bike, Car Insurance?
Motor insurance is an insurance policy that protects the vehicle and its owner against any unforeseen event such as accidents, theft, flood, fire, riot etc. Motor insurance can be classified broadly under the following heads-
- Car insurance
- Two-wheeler insurance
- Commercial vehicle insurance
Types of Car & Bike Insurance Based on Coverage:
Based on the coverage, motor insurance policies are of two types-
- Third-party Liability
The Third-party Liability policy offers protection against all legal liabilities in the event of an accident, which results in permanent injury/death of a third party or damage to the surrounding property. As per the rules of Insurance Regulatory and Development of India (IRDA), every vehicle owner must have a Third party Liability cover.
- Comprehensive Insurance Policy
In addition to the benefits of the Third party Liability cover, the Comprehensive Insurance policy offers protection to your vehicle as well as your own injury. It provides a financial safety net against any damage or loss that may result from a man-made/natural calamity such as burglary, theft, riot, earthquake, flood, fire etc.
What is covered under Car & Bike Insurance?
A motor insurance covers the following-
- Coverage against damage or loss to the insured vehicle
- Protection against any legal liability due to accidental damage
- Personal accident cover
Exclusions in the Car & Bike Insurance Coverage-
The motor insurance will not cover the following situations-
- Damage caused to others by the person driving the vehicle under the influence of alcohol/drugs
- Damage/loss due to mutiny, war or nuclear risks
- General ageing and normal wear and tear of the vehicle
- Electrical/mechanical breakdown
- Damage caused to others by the person driving the vehicle without a valid driving license
6 Reasons Why You Should Purchase a Motor Insurance Right Away-
According to a survey conducted by the Ministry of Road Transport and Highways, 4,80,652 road accidents were recorded in 2016 that led to 1,50,785 deaths. The incidence of accidental deaths has been rising ever since.
According to recent reports, the number of road mishaps has increased from 2007 to 2017 by 31%. Keeping this in mind, the importance of getting a motor insurance cannot be denied. Here are six reasons why you should get insurance for your vehicle right away-
- A motor insurance policy is mandatory
According to the Motor Vehicles Act of 1988, every motor vehicle must at least have a Third party Liability Cover in its name. Not complying with the law can cost you a large sum as fine or even a prison term.
- Protection against any unforeseen event
Apart from protecting you against legal liabilities, the insurance policy also covers the damage to your own vehicle. For instance, if your vehicle gets involved in an accident or some vandalism during a riot or bears upon serious damage due to bad weather conditions, the entire cost of repair will be covered under the motor insurance plan.
- Covers the expense of repair and damage
High performance, luxury vehicles are manufactured with custom-made accessories. This means if you get involved in an accident, getting the original parts will cost you more. If you have a motor insurance, the insurance provider will cover the expenses of such damage to your vehicle.
- Additional covers for wider coverage
Additional covers provide wider coverage to your vehicle. Insurance companies offer add-on covers in the form of Accident Shield, Conveyance Benefit, and On-spot Assistance, Zero Depreciation cover etc. to provide extra benefits during an emergency. You also get a Key and Lock Replacement cover that reimburse you for the cost of replacing a lost car key.
- Cashless assistance at network garages
An unforeseen damage to your vehicle or an accident can lead you to shell out a huge amount of money from the pocket. Moreover, it may not be feasible for you to look out for a repair shop, go through all the paperwork, make the payment and then, finally be able to get your vehicle serviced. It is just too much to bear with! That is exactly why you should have a motor insurance in your name. It allows you to avail of the repair services at a network of garages where you would not need to pay the bills in advance. The insurance company will do the needful once the vehicle is repaired.
- Easy to purchase
Purchasing the motor insurance online saves you time. The procedure is quick and hassle-free. All you need to do is visit the company website, fill in the details, choose the policy tenure (long-term or short-term) as per your preference, and proceed to buy. The payment can be done using a debit/credit card/net banking/digital wallet. If you opt for the long-term policy period, you will not have to worry about annual renewals of your insurance policy.
Getting the right insurance policy for your motor vehicle is essential to gain financial security against unforeseen events. To evaluate the different plans available, and choose the one that matches your requirements.
How to Choose a Car & Bike Insurance Plan?
One must consider the following factors while choosing a motor insurance policy in order to reap the maximum benefits.
- Brand name- A reputable brand name should be the first thing on your mind when purchasing a motor insurance policy. When it comes to protecting the vehicle, you should always choose an insurance company that has been in operation for a good couple of years. You can visit the company website and check the reviews made by previous policyholders. This will give you a fair idea of how the company operates, and what all coverage and benefits it provides to the customers.
- Coverage- Before settling for a motor insurance policy, it is important to understand what type of coverage the policy offers. Although a Third party Liability cover is mandated by law, a Comprehensive insurance cover may seem more beneficial, since it provides additional coverage to the policyholder and own vehicle as well.
- Sum insured- If the sum insured is too high, the premiums are also likely to be very high. There is a fine line between being comprehensive and going overboard with the motor insurance. You should allocate and stick to a sensible budget so that the premiums can be easily affordable.
- Affordable premiums- Premium is the amount you pay to the policyholder on a monthly/quarterly/yearly basis while purchasing an insurance policy. Choosing affordable premiums can ensure that you are not straining your budget while purchasing motor insurance. At the same time, you also need to ensure that the policy for which you are paying the premium offers a comprehensive coverage to you and your vehicle. The premium amount depends on several factors such as your vehicle’s cubic capacity, Insured Declared Value, the age of the vehicle, and the city of registration.
- Claim settlement ratio- Claim settlement is simply the financial help you receive from your insurer when you apply for the same. It is essential that you choose the insurance company that has a high claim settlement ratio as it implies the company will very likely settle your claim.
Choosing the right insurance policy can be difficult, especially if you are new to the field of motor insurance. However, if you are well aware of the features and benefits of the different insurance plans available in the market, you will be able to purchase the best motor insurance plan.
What are the Benefits of Purchasing Car & Bike Insurance?
Besides offering financial protection to your vehicle, a motor insurance policy also comes with a myriad of other benefits and facilities such as the following-
- Exciting Add-ons- All insurance companies offer exciting add-on covers to the policyholder during an emergency. These add-on covers provide a wider range of benefits in the following forms-
- Zero depreciation cover- This is one of the most popular and widely purchased add-on covers. A Zero depreciation cover ensures that you receive a full claim on the value of the parts of the vehicle in case they need to be replaced after meeting with an accident.
- Lock-and-key Replacement- This cover reimburses you for the cost of replacing a lost car key.
- Quick Road Assistance- With this add-on cover, you can get access to services in the event of a crisis while driving through a remote location. The basic services include protection against occurrences like a flat tyre, flat battery, fuel assistance, etc.
Insurance experts recommend such extensive coverage with value-added features. However, if you wish to avail of the above benefits, you will need to purchase the add-on covers separately, since these are not included in the motor insurance plan.
- No Claim Bonus- It is possible that you do not meet with an accident during the tenure of the insurance policy. In such a case, most companies offer an incentive known as a No-claim bonus to their customers. The NCB benefits can be availed in the form of discounts on the premium. For each claim-free year, the policyholder can accumulate lucrative discounts on the premiums at the time of renewal. Check the No-claim advantages for the insurance company that you are purchasing the policy from.
- Cashless settlements- Suppose your vehicle breaks down on a stretch of road where there are no garages nearby. Without a motor insurance, you would have to push the vehicle all the way to a garage to get it repaired or hire a towing service, which would cost you some money. Many insurance companies have tie-ups with a network of garages across India. A motor insurance policy allows you to avail cashless repair services at network garages. You can get your vehicle repaired and serviced at any of these garages and you will not have to pay the bills on your own. Once the servicing is done, your insurer will settle the bills on your behalf. That way, you do not have to worry about making the payments in advance, and you can only focus on repairing the damages. A wider network means a wider range of options to choose from and ensures faster claim settlement.
7 Ways to Get Motor Insurance at Affordable Premiums
Having an automobile insurance cover undoubtedly provides you protection against any unforeseen event. Nevertheless, when it comes to the insurance cost, everyone prefers to go for a policy that offers lower premiums. Here are seven ways you can get an insurance cover at easily affordable premiums-
- Increase your deductible
The deductible is the amount you pay when making a claim. One needs to choose the deductible value while purchasing the insurance policy. Your insurance premium tends to decrease when you choose a higher deductible value. This is because choosing a higher deductible means you will have to pay a high amount towards the claim. Your insurer will cover you for a lesser portion of the claim amount. Since the risk on the insurer’s side is less, the premium levied will also be less.
- Gather your NCBs
Do not get tempted to avail those NCB benefits. The premium discount depends on the duration for which you have not made a claim. So the longer you hold on your NCB, the better you will be able to cut the cost of your motor insurance policy.
- Avail the various concessions and discounts
Many insurance providers offer concessions to the customers who have a valid membership of renowned automobile associations, such as the Automobile Association of Eastern India, Western Automobile Association, etc. Moreover, professionals like Chartered Accountants, Govt. employees, and doctors are entitled to avail special discounts. Such discounts make the insurance premiums easily affordable.
- Install an Anti-theft device
Installing an anti-theft device in the vehicle, which has been approved by the Automobile Research Association of India, makes you entitled to receive discounts on the insurance premium. This obviously means you need to pay a low premium amount while purchasing the insurance policy.
- Avoid lapse of your insurance policy
Another way you can keep your insurance premiums low is by ensuring that the policy is renewed in due time. Failing to do so before the due date, will lead to a lapse of the motor insurance policy. Once your policy lapses, you will have to get a new policy, and there are chances that insurance premiums will be high. Moreover, with a lapsed policy, you will also lose the collected NCB benefits.
- Compare the price and features of a plan
You need to maintain a delicate balance between the price and the kind of coverage that the plan offers. Look for a policy that offers the most for the amount you are comfortable paying. Do not settle for a cheap motor insurance policy blindly, as it may offer little or no security and benefits. Additionally, keep an eye on features, such as IDV, No-claim bonus and more.
- Shop for the policy online
Online motor insurance purchase is not only easier and more convenient but is also cheaper. When you purchase a plan online, the insurance provider does not need to pay a commission to a third-party insurance agent or a broker. Therefore, the premium to be paid is quite affordable.
5 Easy Steps to Renew Motor Insurance Policy
Time and again, we hear people talk about the importance of buying an insurance policy for one’s vehicle. Having a motor insurance policy safeguards you financially against an unforeseen event. In addition to that, a motor vehicle insurance policy offers many benefits and advantages to the policyholder. However, purchasing an insurance policy is not merely enough. One has to renew the policy in due time to enjoy the maximum coverage.
Either you can choose to renew your motor insurance online or you can opt for the offline renewal procedure.
Online Renewal Procedure
In this day and age of digital technology, the leading insurance companies have shifted their business online. Thus, your insurer likely has a website of its own through which you can access their products and follow their operations. You must take it upon yourself to track the length of your policy and set a reminder for the policy expiration. Your company may also send you a reminder via email or text, so you can begin making your renewal preparations as soon as notified. Follow these steps for a hassle-free renewal-
- Easy login
All you need to do is visit the website of your insurance company, log in with a valid username and password. You can compare different insurance policies online and choose the one that suits you best. Keep your documents and the old insurance policy handy so that you can refer to them while you undergo the renewal process.
- Choose the payment mode and policy details
Once you decide on which insurance policy to go for, the next thing you need to do is select the mode of payment. You can pay the policy premiums using a debit card or credit card, or through NEFT. Enter the details of your insurance policy- model of the vehicle, registration certificate, and previous policy details before making the transaction.
- Get a print out of the receipt
Your policy will be issued as soon as the payment is verified. The insurance company will send you an email along with a copy of the same. You can search for the policy document using your issuance number on the company’s customer portal. You can get a print out of the renewal receipt for your own recovery.
Offline Renewal Procedure
You can also renew your policy by directly visiting any branch of your chosen insurance company, or there are insurance brokers and agents who can help you with the renewal process.
- Insurance Broker
This third-party agent works not for the insurance company but for you—their priorities are aimed at acquiring the most beneficial motor insurance policy for you. These are qualified and experienced professionals, who possess an extensive amount of knowledge about the array of insurance companies operating and the various policies being offered at any given time. Thus, you must submit your documents to them and they will present you with a healthy list of options for your approval.
- Insurance Agent
This particular source of motor insurance renewal may seem the most obvious but it also may be the easiest as well. Without the hassle of manoeuvring technological obstacles or dealing with the occasionally suspect third-party broker, you can directly approach your insurance company and simply fill out the paperwork to renew your policy. You will only need to fill out the paperwork to renew your policy. The best insurance companies also have the most ethical agents who wish to serve their customers well.
Choose a method that is convenient for you, and make your purchase a smooth and hassle-free affair.
8 Myths about Car & Bike Insurance You Need to Know
In recent times, a number of motor insurance myths have propagated the market. When you are looking to buy insurance for your vehicle, you will likely be exposed to a stream of information. To pick the right policy, you will need to separate the facts from the myths. Here are eight common auto insurance myths that need to be busted-
- Myth: An old vehicle does not need an insurance cover
Whether it is an old car or a new one, the law mandates at least a Third party Liability cover for every motor vehicle. If you feel that, the low replacement value of an old vehicle does not justify the purchase of a comprehensive insurance cover, then it is time you get your facts right. In fact, old cars are more likely to be stolen due to the demand of its parts or sustain maximum damage in case of a collision. Therefore, it is essential to have yourself covered under the comprehensive policy as well.
- Myth: The policy cannot be transferred from one insurer to another because doing so will leave you with no NCB
NCB or No Claim Bonus is the discount on the premium offered to the policyholder by the insurance company for not having claimed any damages in a calendar year. NCB can certainly be transferred to another insurance company only if you file for it within 90 days or 3 months of the termination of your previous insurance policy.
- Myth: The insurance will cover for the damages caused by you under any circumstance
There are certain exceptions wherein the motor insurance will not be covering you against any damage/physical injury. For instance- if you get involved in an accident under the influence of alcohol or drugs. Also, if you meet with an accident while driving your personal vehicle for business or commercial purposes, the insurance policy will not safeguard you against such eventualities.
- Myth: In case of a mishap, the insured has to pay before going through the inconveniences of claiming for the insurance
You either need not pay for the damage repairs at all or even if you do, you get the amount reimbursed later on. As long as you visit a garage that falls under the radar of your insurance company, the entire amount will be settled directly by the company agents.
- Myth: Getting an auto insurance can be a cumbersome procedure
The reality, however, is that you can purchase and renew your auto insurance by just providing the basic details about your vehicle. All you need to do is, provide the necessary documents- a duly signed claim form, a copy of the registration certificate of the vehicle, and an FIR along with your driving license.
- Myth: The policy covers personal belongings
The policy covers only the insured accessories of your car- LPG kit or CNG, GPS navigation, music system etc. Any personal belongings including jewellery or cash in the car are not covered by the policy.
- Myth: The colour of your car determines the premium
The colour of your vehicle will not affect your premium. The premium depends on factors such as the manufacturing year, place of registration, cubic capacity etc.
- Myth: You pay less if you have CNG or LPG kits
Vehicles equipped with LPG kits or CNG are considered commercial vehicles and therefore have a higher chance of being involved in an accident. To account for the additional risk, the premium rates are higher if your vehicle has either a CNG or an LPG kit.
Now that you are well aware of the myths and facts, make sure you do not fall prey to these while purchasing a motor insurance policy.
How to File a Car & Bike Insurance Claim-
The formalities and documents involved in the claim settlement process of motor insurance depend on the type of the vehicle and the nature of the loss sustained. Here is what you need to do while filing for the insurance claim-
- It is advisable to get in touch with the insurer as soon as possible in order to register the claim. Not doing so may lead to delay or further complications in the claim process.
- To initiate the claim process, you will need to submit a detailed estimate of the loss sustained to the insurer. An authorized representative of the insurance company will evaluate the extent of the damage caused to the vehicle. After a thorough inspection of the automobile, they will submit a report and inform the insurer of the loss. Also, you must lodge an FIR in case of an accident or a theft because that will quicken the process of claim approval.
- You can file for a cashless claim settlement or opt for the reimbursement claim.
- Cashless claim service allows the insured to access garages where they do not have to settle the bill beforehand for the damages covered by the insurance. The insurance company settles the claim on behalf of the owner.
- In case of reimbursement claim service, you can choose to get your vehicle repaired at a workshop, which is not a part of the insurer’s network. All you need to do is submit the claim form along with the repair bill and the registration copy of the vehicle. Once this is done, you will get the claim amount directly transferred to your account. In this process, you first settle the bill and then initiate a claim. The insurance company thereafter pays back the bill amount to you after verifying it.
Documents required for processing the Car & Bike Insurance claim include the following-
- Driving license
- Fitness certificate for commercial vehicles
- Registration certificate of the vehicle
- Final repair bills
- A police report
On receiving the notice from the third party or the insurer, the matter is transferred to an advocate. The insured has to submit a detailed account of the accident along with the documents mentioned below-
- Driving license
- A police report
- Medical certificate
- Death certificate in case of a fatal claim
Filing an insurance claim can be rather daunting. After all, you have just met with a trauma and are in no mood to go through the hassle of filling out the paperwork. All you want is to quickly proceed to the next step and get your claim sorted. The best insurance providers in the market ensure a hassle-free and convenient claim process for the customers. They have a 24X7 Customer Care Support Helpline in place, which can assist you the best. If you have any query regarding the policy claim procedure or even the coverage and benefits, it is best to get in touch with the customer care executives and clear all your doubts.
Motor Insurance is not only mandatory but also a necessity for commuters across all age groups. Life is, as you know, unpredictable and you never know what danger may befall you, so having a financial safety net can help you gain coverage from almost all risk situations. The best way to find and invest in a policy that suits your needs is to evaluate all its offerings, add-ons, and exclusions before choosing a specific plan.
Investing in a comprehensive motor insurance plan is one of the most convenient ways to protect yourself while you hit the road. With all the lucrative features and benefits, and the assurance of having all your documents online whenever you need them, this policy will not let you down. Whether you are travelling with your friends or family by road or commuting to your place of work, now you can rest assured that the auto insurance policy would safeguard you and your vehicle against an unwanted mishap. Therefore, without further ado, purchase a motor insurance today and avail all the benefits!