Motor Car Insurance

Quick Guide to Motor Car Insurance

Car Insurance

Car insurance or Motor Insurance is a legal contract between a car owner and a general insurance company wherein the latter promises to protect the vehicle owner from unforeseeable financial losses which may occur due to unforeseen event involving his/her vehicle. It provides monetary compensation to the policyholders in the event their car is stolen or damaged due to any such circumstances. Individuals has an option to select from the three types of car insurance.

As per the Motor Vehicles Act, it is mandatory for all vehicles plying in any public space to have a motor insurance cover. In India, policyholders must have at least 'third party liability' motor insurance cover, even when opting for the basic insurance plans.

What is Car Insurance?

A car insurance is a legal contract between a car owner and a general insurance company wherein the latter promises to protect the car owner from any financial losses which may occur due to an unforeseeable event involving his/her car. There are three types of car insurance plans-third party insurance, comprehensive insurance and standalone own-damage car insurance. One can renew car insurance policy online to get an instant e-Policy.

Key Features of Car/Motor Insurance Policy.

Car Insurance key Feature and Benefits:

Category	Key Features
Third-party damages	Death, injuries & property damages
Own damage cover	Available under standalone and comprehensive
No Claim Bonus	Up to 50%
Insurance premium	Starting at 2094
Add-on covers	More than 10 add-ons such as NCB protect, Personal Baggage, etc.
Buying/Renewal Process	Online
Personal accident cover	Up to 15 lakh
Cashless Garages/Repairs	Available

Some other add-on benefits that are on offer along with care insurance are:

Zero Depreciation Cover
Personal Accident Cover
Driver/passenger Cover
Engine Protection
Lock Key Replacement Cover
24X7 Roadside Assistance/Towing Facility
Conveyance Benefits

Type of Car Insurance Policy in India

There are 3 types of car insurance policies defined on the basis of scope of coverage:

Third-party liability Insurance policy – As per India’s Motor Vehicles Act, it is mandatory to hold at least a third-party liability cover for all car owners. All the car owners must have this policy to drive on the roads, across the country. Under this policy compensation is provided for damages/injuries caused by insured to a third-person, and property. However, It does not cover any damages caused to the insured car. Therefore, it is always to buy a comprehensive or standalone car insurance policy. 
A comprehensive car insurance policy – This policy covers both third-party liabilities and own damages. Under the plan the policyholder can avail cashless repair services at the network garages of insurer. In this policy option person can opt for various add-on benefits and riders at nominal extra cost.
A standalone own damage car Insurance policy – This policy financially covers the accidental damages caused to the insured car and can be purchased with an already active third-party insurance. Having a stand-alone insurance offers financial over in case of own damages to the insured car and third-party liabilities as well.

How to calculate Car Insurance Premium?

Car insurance premium of third-party insurance plans is determined by the IRDAI, whereas the premium for standalone own-damage and comprehensive plans vary from one insurer to another insurer. Some factors which affect the premium for own-damage four-wheeler insurance cover are::

Insured Declared Value – The Insured Declared Value (IDV) is the current market value of the four-wheeler and is one of the important factors which affect the calculation insurance premium. It is the amount which insurer pay the policyholder in the event of total loss of car. A higher IDV will attract a higher car insurance premium. 
Engine Cubic Capacity – Greater the car’s cubic capacity, higher is the car insurance premium.
Age of the Car – With the passage of time the value of the four-wheeler reduces due to depreciation. Therefore, greater the age of car, lower the insurance premium.
Make, Model and Variant – The make, model and variant of the car affects the IDV of a car. For different make, model and variants of the car, different insurance premium is applicable.
RTO Location – RTO location of your car gives the insurance company an idea about the traffic conditions and density of traffic in the area/city where the car will be driven. So, motor insurance premium is calculating taking account the probability of road accidents and other mishaps.

How to compare Car Insurance / Motor Insurance Online?

Comparing car insurance online is not at all a tricky process now a days. All you need is an internet connection and a few minutes to compare insurance plans online. Same goes for motor insurance which has vehicles like cars, two-wheelers, and other road vehicles under its ambit. You can buy motor insurance cover for your vehicle against the damages caused by natural disaster and accidents.

Here is how you can compare car insurance online:

Step 1 – Visit the securenow.in
Step 2 – Select ‘Motor Insurance’
Step 3 –Enter registration number along with other details of your vehicle such as model, variant, RTO, etc.
Step 4 – You will now find the car insurance/motor insurance plans of multiple insurance companies. Here you can easily compare car insurance or motor insurance price basis; type, coverage, add-on, IDV, premium etc. You can then purchase the most suitable motor insurance online using safe payment modes.

Coverage Under Car Insurance Policy

Car Insurance Policy Inclusions:

Damages caused to the insured vehicle due to man-made acts like riots, arson, terrorist acts etc.
Any third-party damage like third party death, disability and property damage are covered under the motor insurance policy
Losses arising out of burglary, theft or housebreaking of the insured car
Damages sustained by the insured car due to natural acts like earthquakes, hurricanes, cyclones, etc.
Damages caused to the insured car while it was in-transit via roads, railways, waterways etc.

Whats Not Covered Under Car/Motor Insurance Policy

Car Insurance Policy Exclusions:

Damages caused to the insured car when it’s driven under the influence of alcohol or drugs
Damages to the insured vehicle if the car driver was not carrying a valid driving license
Damages arising out of commercial uses of any private car is also excluded.
Any loss arising out of any contractual liability of the owner/driver
No claim can be raised if your existing car insurance policy has lapsed
Mechanical or electrical failure of the insured vehicle
Any damage arising out of the specified geographical limits are also not covered under car insurance policy
Damages to engine, tyres and tubes of the insured car/motor vehicle are also not covered

Add on Covers in Car/Motor Insurance Policy

List of add-ons in car insurance/motor insurance are:

No Claim Bonus Protection Cover – For every claim-free year, the insurer rewards car insurance policyholder with a discount on the renewal premium. This discount is called - No Claim Bonus (NCB) and ranges from 10% to 50%.
Engine Protection Cover – With this motor insurance cover you can get compensated for the cost of fixing damages to Engine, Gearbox parts, Engine parts, differential Part etc, due to oil leakage or water ingression,
Zero Depreciation Cover –This feature offers compensation even for the depreciating value of your car.
Consumables Cover –Covers the expenses incurred on consumable items like nuts and bolts, AC gas, grease, lubricants, clips, bearings, engine oil, brake oil, etc.
Key Protection Cover –The car insurance company can offer help by covering the costs incurred on the replacement and repair of your car keys.
Daily Allowance Benefit –Under this motor insurance when your vehicle is parked in the garage for repair for more than 3 days, the insurer will provide you a daily travel allowance.
Personal Accident Cover –A comprehensive car insurance policy besides providing third-party cover also offers cover for personal accidents. Under personal accident cover, you get a pre-defined amount against death because of the accident and permanent total disability.
Roadside Assistance Cover –In case you get stuck somewhere, the insurance policy, the insurer provides you with roadside assistance and sends a mechanic to your location to fix the damage caused to your car.
Return To Invoice Cover –Under Return to invoice add-on, if your car gets stolen or gets damaged beyond repair that is known as a total loss then the insurer will have to provide coverage as per the amount of invoice that you paid at the time of purchasing the car. This cover includes ex-showroom price, road tax and first-time registration charges.
Personal Possession Cover –With this add-on cover, one gets the coverage in case he/her personal possessions get damaged in an unfortunate car accident or get stolen from the car when it is parked in an authorised parking lot.
Tyre Protection Cover –A tyre protection cover can be purchased as add-on under this car insurance.
Driver and Passenger Cover –Under this motor insurance policy add-on, one gets coverage in case any of the drivers or passengers get injured in the accident. The insurer will provide financial aid for the medical expense.

Points to Consider while selecting Car / Motor Insurance Policy

Know what your requirements are – Before you start looking for a car insurance plan, you must first assess your insurance needs, determining the type of insurance cover you want to buy, any additional covers required, premiums, etc. Ideally, you should look for an insurer that offers comprehensive coverage at an affordable price, together with an easy claim process and faster processing of claims.
Compare car insurance quotes online – When buying car insurance, you must compare quotes online. By entering your requirements in an online quote request-form you can access instantly.
Choose a provider with a wide network of garages and workshops –When you are looking for a car insurance provider, make sure to check its list of network garages. Choose an insurance company that has a wide network of garages with facility of cashless claims.
Check the claim data –One should choose a car insurance company with history of the best claim settlement ratio and an easy claims process. Claim data about different insurance providers can easily be found online.
Accumulate No claim Bonus –Accumulating No Claim Bonus (NCB) is a popular way to reduce car insurance premiums. You can accumulate up to 50% NCB and use it later.
Get zero-depreciation cover –A zero-depreciation insurance will help you get complete reimbursement for the car parts replaced without any deduction for depreciation. This cover comes at an extra cost with your car insurance.
Consider buying car insurance online –The most obvious advantage of buying insurance online that you have a wider choice, save time and money.

How to Buy Car / Motor Insurance Online

The process of buying a car insurance or motor insurance online is quite simple and easy. Here’s how you can buy the right insurance online:

Fill in Your Car Details – Enter your car details such as its make, model, variant etc, to see insurance prices offered by top car insurance providers in India.
Compare Car Insurance Quotes – From all the available Motor insurance online plans, select the plan which suits your budget & requirements in the best manner.
Make Payment Online –Pay the policy premium for car insurance online and get your Motor insurance document instantly in your inbox.

Benefits of Buying Car Insurance Online

Below are some key benefits of buying an insurance online:

Multiple policies can be compared at a time
You get the best deal in terms of premium
Minimum to nil paperwork involved
Convenient to buy
Instant policies issue
Checking the credibility of the insurer is much easier online
You get genuine policies
Does not require meeting of an agent

How to Renew Car / Motor Insurance Online

To renew motor insurance policy, visit your insurance provider's website to fill in the details such as; your existing car insurance policy number, car registration number, mobile number and email address. Enter the policy details and review add-on covers you would like to opt-in and opt-out of. Select your preferred add-on(s) and complete the process by paying the premium amount via online payment gateway.

Benefits of Car Insurance Renewal Online

Buying and renewing car insurance online is a common practice now a days. By purchasing a car insurance policy online has a clear advantage over offline mode because of the following reasons:

Buying process – Insurance can be purchased online from insurers’ official websites or insurance marketplaces, using smartphone or computer.
Insurance Premium – When you buy or renew car insurance online, you pay lower premium. Buying policy online involves lower operational cost and no involvement if agent.
Convenience –You can buy or renew car insurance policy from the comfort of your home, without any need to meet an insurance agent.
Transparency –Buying and renewing car insurance online is a transparent process with best premiums rates shown online to choose from and no involvement of intermediaries.
Customer Support –It is much easier to connect with customer support team 24X7 through email and phone.
Paper work –Buying/renewing car insurance online involve minimum or zero paperwork.
Renewal Process –Renewing car insurance online is very easy as your policy details are auto-saved with the insurer.

How to file a Car / Motor Insurance Claim?

The process of filing a claim for car insurance involves a few steps. Follow below guide for raising a claim against your car insurance policy:

Intimate your Insurer – As a first step, insured must intimate car insurance company about the car mishap and provide them with as much information as available about the damages.
Register an FIR – File an FIR at Police Station nearest to you in case of theft, accident, third-party loss, or fire explosion.
Take Pictures of the Damaged Car For effective filing of car insurance claim, you should take clear photographs of the damaged car from different angles at the incident site.
Assessment & Evaluation –A surveyor is assigned by your car insurance company to evaluate the damages to your car and submits an assessment report to the insurance company.
Submit Required Documents to the Insurer –A list of documents is required to be submitted for completing the claim process. It includes documents like the FIR, the driving license of the driver, a copy of your insurance policy, car registration certificate, etc.
Get Your Car Repaired –Get your car fixed cashless at a network garage of the insurer or take it to a non-approved garage for repairs. In the case of network garage, one can take the car home without paying the bill as it will be settled by your insurer. In the case of a non-network garage, you will have to settle the bill after repair and file a reimbursement claim with your insurer. Once your claim is approved by the insurer, you will be reimbursed for your expenses.

Documents Required for Filing a Car / Motor Insurance Policy Claim

Following documents are required to process a claim in case of an accident claim:

Filled claim form along with your signature
Tax receipts
Copy of your car registration certificate (RC)
Driving license of the driver
Copy of the FIR
Estimated bill of your car's repair cost.
Original repair bills and payment receipts
Car inspection address, if not done at a garage

Document required to process a claim in case of theft of insured car:

A copy of the insurance policy document
Theft declaration from the RTO
Policy FIR copy
Letter of subrogation
Tax payment receipts
Original car registration book
Previous policy details like insurer company name, duration & time if insurance
Items like booklets, warranty cards, duplicate keys, etc.
Forms 28, 29, 30 and 35
Official intimation to respective RTO about theft and discontinuation of the vehicle
Claim Discharge Voucher along with a revenue stamp duly signed

In case of Third-party claims, following document would be required:

Duly filled and signed claim form
Copy of the Police FIR
Copy of Registration Certificate (RC) and Driver's License (DL)
Stamp needed for company-registered vehicle's original documents

Why should you buy a Car Insurance Policy from SecureNow?

SecureNow’s expertise is more than just about insurance policies. Our extensive training and experience focus not only on specific types of insurances, but also risk management. We can help you to get the right car insurance plans, by actively working as an advisor on your behalf. It doesn’t cost you anything extra to use our services. We as an insurance broker;

Listens and understands your car's coverage needs
Help you to find the right car insurance policy, one that suits your individual requirement
Offers objective and impartial advice that is appropriate to your vehicle's insurance needs and fits your budget
Help you understand the insurance plan, its coverage, and exclusions, honestly and clearly
Maintain a transparency regarding to all costs of your policy
Provide clear information help you with the paperwork
Assist you with filing a claim and efficient service from the insurance company

Frequently Asked Questions

Some of the major reasons why one must have car insurance and also ensure timely motor insurance renewal, include:

Reduces liability

Pays for damages

Buying motor insurance online is cheaper

Pays for hospitalization

Family receives compensation in the unfortunate event of death

Pay premiums on time and always enjoy coverage

The Insured Declared Value (IDV) defines the market value of the car for insurance purpose. IDV is the maximum claim your Car insurance company will pay if your vehicle is stolen or is damaged beyond repair.

Zero depreciation cover is an add-on in car insurance, wherein the insured does not have to pay the depreciation value of the damaged or replaced parts. It is also known as bumper to bumper or nil depreciation cover. Under this add-on the policyholder can claim the full amount as compensation. Most insurers do not offer this add-on for vehicles that are more than 5 years old and the policyholder can avail of it twice during the policy tenure. More recently, a few insurers have also started offering a 7-year zero dep cover. Further, there are some car models which are not covered by a Nil Depreciation policy.

Yes, car insurance is mandatory in India for multiple reasons but the foremost among them being the rising number of road accidents in India. The Motor Vehicles Act, 1988 states that owner-drivers of the car must carry at least a valid third-party car insurance policy.

Third-party insurance is a statutory requirement for all vehicle owners to have as per the Motor Vehicle Act. Under the third-party car insurance cover the insurer damage to the third-party vehicle, personal property and physical injury. This type of motor insurance policy does not provide any coverage to the insured.

EP stands Engine Protection in Car Insurance and it is an add-on policy feature. Having engine protection insurance helps you in getting your claim settled in case only the engine of the car is damaged. This add-on covers the loss or damage to the engine, gearbox, and other engine parts due to oil leakage or water ingression.

Roadside Assistance (RSA) cover offers much-needed relief to a car owner in case vehicle develops a mechanical issue, suffers a total breakdown or runs out of fuel/battery anytime, anywhere. It also RSA cover comes in handy I such frustrating situation when one is stranded in an unfamiliar place with no access to a mechanic. Most of the leading car insurance companies offer this facility at no additional cost. Taxes and tolls associated with this service will have to be paid by the policyholders though.

Car insurance policy can be downloaded from the website of the insurance company by entering the basic details related to the insurance policy.

Yes, car insurance is tax-deductible under certain conditions. Policyholder is allowed to get tax benefits on things related to a car used for business purposes and as conditions are set below:

Only business - All the expenses associated with car usage by the employer for business purposes get a tax benefit, provided the bills, kilometers covered, driving records, date of use, etc., are readily available for tax calculations. The employer must also issue a certificate confirming the car is used for business-related purposes only.

Business and personal use - Under these conditions, the car is owned by an employer. and it can be used for business and personal needs. Here the tax exemption is calculated based on cubic capacity of the car and the presence of a paid driver, if any.

Some key factors that may affect your car insurance premiums are your car, your driving habits, demographic factors and the coverage, limits and deductibles you decide to choose. These factors may include things such as your age, anti-theft features/devices in your car and your driving record

No, you cannot pay car insurance premiums in installments. Section 64VB of the Insurance Act, 1938 does not permit insurance companies to take the risk of providing coverage to the policyholder until full premium payment is received.

Few simple tips that can help you cut down on your car insurance premium:

Choose Third-party insurance for older cars

Install anti-theft devices in your car

Avoid unwanted modification in your car

Compare car insurance premium thoroughly

Raise your voluntary deductibles

Exclude avoidable add-on(s)

Avoid minor claims

Avoid policy lapse

Look for Pay as you drive insurance

Top 5 Car Insurance Policies of 2022 :

Bajaj Allianz

ICICI Lombard

Cholamandalam MS

Digit

If you are planning to buy a car insurance, SecureNow have got you covered with some of the exclusive benefits that are highlighted below :

Easy to Purchase & Cost-Effective

Easy to Compare premiums

Calculate Premium Rates

Renewing Policy Is Easy.

Minimum Paperwork

Transparent & Convenient

Instant Issuance

Easy to Check Insurance Company’s Credibility

Yes, you need to inform about the changes and modifications made for a smooth claim settlement in the future.

Car insurance being a legal requirement, insurance companies carry out background checks before extending their coverage to any policyholder. Doing so insurance companies are reducing the risk of fraudulent claims that are used to seek undue advantage of the insurance policy.

Buying car insurance online is considered the best due to its inherent advantage. Online buying of insurance is much more affordable, convenient and time-saving. To find best offers online, you can visit securenow.in and follow below steps

Select ‘Motor Insurance

Look out for the best Quotes as per your insurance requirement

Click on buy the plan

Fill out the required details of your car

Submit it along with the required documents

Pay the premium to close the process.

Common steps used for paying car insurance's online payment:

Fill up the required details of your car in the form to proceed with your online payment.

Get the premium quote and make your payment.

Keep your credit/debit card or NEFT details handy with you.

Make the payment through secure payment gateway

Get a copy of your insurance policy

Car insurance policy related details can be accesses online using below process:

You can visit the website of the RTO where your car is registered, fill up the registration number of your car in the given section and click “proceed” to find the policy details.

Visit the website of your respective State Transport Department and enter the registration number of your car to get the car insurance plan details.

Policyholders can register claim by calling their respective car insurance provider on its toll-free number or through its website or by email. Once claim is registered, a claim registration number is issued to the insured, which is to be used for future communications. Car owner can then take the damaged vehicle to any car garage for repairs.

RTI or Return to Invoice is a cover that is part of comprehensive car insurance plan. This add-on allows you to receive compensation equal to the car's original invoice value, that is, the original purchase value of the car when you bought it. The claim applies when a car is stolen or when it is damaged beyond repair.

There are multiple ways of checking the status of your motor insurance policy and knowing its expiry date. Here are some of the ways of checking your car insurance policy expiry date:

Check your car insurance policy document for the expiry date

Call and enquire at the insurer’s customer support number

Contact your insurance agent and ask about the expiry date

Visit the website of the Insurance Information Bureau (IIB) of India and check your policy status

Use Parivahan Sewa website and to check the policy details car insurance status on VAHAN App

Visit your Regional Transport Office (RTO)’s website to know your policy status

Insurance claims are generally denied on below grounds:

If your claim is found to be a non-genuine one

Inability to produce the required documents

If you are found to be violating traffic rules when the accident happened

Delay in filing the claim

Non-renewal of car insurance policy

What Our Customers Are Saying

Veena

Car insurance from SecureNow has been a good choice for me. The policy covers all my needs and the customer service is excellent.

Tanaya

Happy with the motor insurance from SecureNow. The rates are fair and the coverage is comprehensive. Definitely a good choice.

Harshil

SecureNow’s motor insurance is reliable. I had to file a claim and it was processed smoothly. Very pleased with the service.

Insuropedia

Should I buy third-party car insurance or a comprehensive cover?

There are no two ways about it when it comes to car insurance. If you own a car in India, you need valid insurance coverage on it as mandated by the Motor Vehicles Act, 1988. However, the Act does not mandate a comprehensive cover. It requires you to own valid third-party insurance coverage only to drive the car legally. Does that mean that you don’t need a comprehensive plan?

How to use NCB of old car insurance to reduce new car policy premium?

Published in Economic Times.You can use the no claim bonus (NCB) earned on the comprehensive insurance policy of your existing or old car to reduce the premium payable when you buy comprehensive insurance for a new car. All it requires is some planning and it’s worth it because if you have a 50 percent NCB you can get that much discount on the huge Own Damage (OD) insurance premium (Saving of approximately Rs 9, 700 on Rs 7.75 lakh of car’s IDV (insured declared value)) normally payable on buying a new car.

Pros and Cons of Buying Car Insurance Online

Purchasing a car might have been your dream since your childhood. Now that you have accomplished it, it is necessary to secure your most prized possession through a Motor Insurance policy which is legally mandatory for every car owner. Given the increased reliance on the internet in today’s world, most General Insurance companies have expanded to providing insurance through their online portals. So, in this article, we will discuss the pros and cons of buying car insurance online. Therefore, being just a click away, the process has become straightforward and popular among people across the world.