Vehicle Insurance

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Vehicle Insurance

Vehicle Insurance is one of the most important documents that an automobile driver/owner must possess. Moreover, getting auto insurance has become somewhat of a mandate in today’s fast-paced world. The fact that acquiring these documents is relatively very simple adds to why it’s a mandate.

What is Vehicle Insurance?

As its name suggests, Vehicle Insurance is a legal, contractual document that acts as a fail-safe and financially protects against losses sustained due to natural/man-made calamities, physical damage or against liabilities that arise from incidents in the vehicle. It is insurance for cars, motorcycles, trucks, and other vehicles. This not only ensures peace of mind and health but also adds security to the policyholder.

Vehicle Insurance

Types of Vehicle Insurance

Car Insurance :

Car Insurance protects the policyholder from accidental loss or damages to their car or a third party. While selecting a favoured car insurance policy, you should always remember to compare the insurance premium amount offered by various insurance providing agencies to ensure that you acquired the most suitable deal possible. The premium usually depends on the launch date, value and make of the car, where it is registered, and the manufacturing year.

Two-wheeler Insurance :

Two Wheeler Insurance is a service that offers protection to policyholders having bikes or scooters. This document covers two-wheeler automobiles against any accidental damage caused to third party property or person as well as any self-inflicted damage. The premium for two-wheeler insurance is determined by the make and type of the vehicle, the age of the vehicle, the date of registration, and other factors.

Commercial Vehicle Insurance :

This type of Insurance is availed on all commercial vehicles (not used for personal purposes) like trucks, goods carrying vehicles, etc. It helps all commercial vehicle drivers to reduce losses that they might incur due to damage to the vehicle they own/drive.

Different Types of Insurance Coverage in India

Third-party Insurance Cover :

This type of insurance covers a third person who might have been injured in an accident involving you and your vehicle, applicable to cars, bikes, trucks, scooters, etc. The policy, however, does not give a direct benefit to the insured individual. No insurer can refuse to under-write third party insurance according to the Insurance Regulatory and Development Authority (IRDA).

Comprehensive Insurance Cover :

This kind of insurance is one that is an add-on to the individual’s third-party insurance plan and hence financially protects the owners of bikes, cars, trucks and scooters from losses incurred by damage or theft of said insured vehicle. Besides this, it also adds third-party coverage.

Pay as You Drive Insurance :

The Pay As You Drive policy is a relatively new auto-insurance business (IRDA) as the Insurance Regulatory and Development Authority’s has newly amended standards. This type of insurance policy allows the individual to pay the insurance premium amounts per the number of kilometres driven using that vehicle. The document premiums are decided at the time of availing the insurance depending on the distance the owner/driver estimates drive. Currently, insurers like ICICI Lombard, Bharti AXA and Acko General are offering this service on their online portals, through agents, online aggregator websites and a number of other distribution mediums.

What all is covered under Vehicle Insurance?

Vehicle Insurance typically covers the damages incurred in vehicles due to the below-listed reasons :

  • Riot & strike
  • Fire & burglary
  • Terrorism act
  • Earthquake
  • Landslide
  • Flood, storm, cyclone

Things that are not covered under Vehicle Insurance

Vehicle Insurance typically does not cover the damages incurred in vehicles due to the below-listed reasons :

  • If the person who is driving is under the influence of drugs or alcohol.
  • The two-wheeler/car/commercial vehicle has been used for illegal activities or an unacceptable purpose that is stated in the policy.
  • Not owning a valid driving license.
  • Any loss/damage to the insured automobile if the incident takes place outside India.

Why Avail a Vehicle Insurance?

Considering the high number of accidents and the generally poor conditions of roads, vehicle insurance has become a mandate to drive on the roads. Auto insurance gives not only financial protection to you but also covers third party charges. In addition, a few private insuring agencies provide a number of other benefits to the policyholders like the ones mentioned below :

  • Cashless claims at network garages or Direct settlement
  • Engine Protection Cover
  • 24X7 Road Side assistance
  • Depreciation Cover
  • Towing Facility

How to file a Vehicle Insurance claim?

Although the formalities and documentation involved in a vehicle insurance claim settlement depend on the nature of the damage and type of vehicle, these are few pointers to help understand the process of filing a vehicle insurance claim :

Filing for a Claim in Case of Damage to Owned Car/ Two Wheeler/ Commercial Vehicle –

To initiate this whole process, the insured individual must submit a detailed estimation of the loss to their insurance company. Next, independent surveyors with engineering know-how are tasked with assessing the extent and reason for the damage. They then carefully check the damage-inflicted vehicle and submit their report of the survey to the insurance company. The company then examines and reviews it, keeping in mind the recommendations that have been mentioned. A decision and final agreement are then conveyed to the individual upon approval.

Other Documents Required for Vehicle Insurance Claims –

  • Registration Certificate Book
  • Police Report
  • Fitness Certificate (For Commercial Vehicles)
  • Final Bill from repairers
  • Driving License

Third-Party Insurance Claims :

The matter is transferred to an advocate on receiving the report from the insured individual or third party. Complete the information about the accident is obtained from the policyholder along with the following documents :

  • Police Report
  • Death Certificate (In case of fatal incidents only)
  • Medical Certificate
  • Driving License

Most asked FAQs about Vehicle Insurance

How is the vehicle insurance premium calculated?

There are numerous factors such as deductibles, IDV, cubic capacity, seat capacity, insurance history etc., that certainly influence the premium amount you pay. In addition, for comprehensive insurance schemes, premium fees vary from insurer to insurer based on the scope of coverage provided.

What is the period for a vehicle insurance policy?

Typically, a vehicle insurance contract stays true for a year’s time and is meant to be renewed before the deadline to stop it from becoming null and void.

What is a “No-claim Bonus” in a vehicle insurance policy?

It is basically the benefit accumulated to the policyholder if they have not filed any claim throughout their policy tenure. This means that they are being rewarded for not having caught up in any accident or damage situation.

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