Car Insurance

Auto insurance in India covers the loss of or damage caused to the automobile or its parts due to natural and man-made calamities. It provides accident cover for individual owners of the vehicle while driving and also for passengers and third party legal liability. There are certain general insurance companies who also offer online insurance service for the vehicle.

Auto insurance is a compulsory requirement for all new vehicles used whether for commercial or personal use. Insurance companies have tie-ups with leading automobile manufacturers. They offer their customers instant auto quotes. Premiums are determined by a number of factors and the amount of premium increases with the rise in the price of the vehicle. The claims of the auto insurance in India can be accidental, theft claims or third party claims. Certain documents are required for claiming auto insurance, like duly signed claim form, RC. copy of the vehicle, driving license copy, FIR .copy, original estimate and policy copy.

There are different types of auto insurance in India:

• Private car insurance – the fastest growing sector in India as it is compulsory for all new cars. The amount of premium depends on the make and value of the car, state where the car is registered and the year of manufacture. This amount can be reduced by asking the insurer for a no claim bonus (NCB) if no claim is made for insurance in previous year.
• Two wheeler insurance – covers accidental insurance for the driver of the vehicle. The amount of premium depends on the current showroom price multiplied by the depreciation rate fixed by the Tariff Advisory Committee at the beginning of a policy period.
• Commercial vehicle insurance – provides cover for all the vehicles which are not used for personal purposes like trucks and HMVs. The amount of premium depends on the showroom price of the vehicle at the commencement of the insurance period, make of the vehicle and the place of registration of the vehicle.

Auto insurance generally includes:

• Loss or damage by crash, fire, lightning, self ignition, external explosion, burglary, housebreaking or theft, malicious act
• Liability for third-party injury/death, third-party property and liability to paid driver
• On payment of appropriate additional premium, loss/damage to electrical/electronic accessories

Auto insurance generally does not include:

• Consequential loss, depreciation, mechanical and electrical breakdown, failure or breakage
• When the vehicle is used outside the geographical area covered by the policy
• War or nuclear perils and drunken driving