Insurance Savvy

What does a Car Insurance Policy cover?

• Accidental damage to your car
• Theft of your car or accessories within
• Death of the driver or third parties in case of an accident
• Damage caused by your car to third party property
• Damage to vehicle due to Fire or Natural calamities like Earthquake, Flood

Why do I need a Car Insurance Policy?

• A car/motor insurance policy is mandatory under the Motor Vehicles Act. The law mandates that every owner of a motor vehicle must have a motor insurance policy that covers third party injury, death and property damage.
• A car is an expensive and prized possession, it needs to be protected
• Accidents, theft and damage can happen to anyone, anywhere
• In case the vehicle is financed, the Financiers would like to protect their interest

What are the risks involved?
Loss or damage to the vehicle by

• Theft/house breaking/Burglary
• Riot, Malicious acts, Terrorist activity
• Fire/lightning/self ignition
• Flood/storm/inundation
• While in transit by rail/road
• Third party injury, death, property damage
• Injuries/death to owner, driver or passengers in the car

What is not covered under Car Insurance?

• Mechanical / Electrical breakdown
• Wear and tear
• Depreciation and consequential loss
• Damage to Tyres/Tubes unless vehicle is damaged at the same time
• Amount of deductible mentioned in the policy
• Damage caused by drivers without valid driving licence
• Driving under the influence of alcohol and drugs

What is ‘compulsory deducible’ under Car Insurance?
A certain minimum amount is deducted from the claim amount payable to the Insured at the time of an Own damage claim. The amount of deductible is given below:

• For Private Cars up to 1500 CC, it is Rs 500
• For Private Cars above 1500 CC, it is Rs 1000

How to make a claim?
Get in touch with your insurance company immediately and inform the accident / loss. Collect a claim form and submit back the filled-in claim form to the insurer along with necessary documents

Contact your insurer for guidance on the cashless garage facility, if any at your location, to avail direct payment facility by Insurer to such a repairer.

All damages / losses will be surveyed and assessed by surveyor / assessor and admissibility of the claim and mode of settlement is decided only after due process of your claim.

What are the documents required for filing a claim?

For Verification

• Original vehicle registration book and photocopies of the same.
• Original driving license and photocopies of the same.

For submission

• Duly filled – in and signed (only by the insured) claim form
• Copy of the police complaint (FIR) (on demand from the company)
• Estimate of repairs.

You might be asked to submit additional documents depending upon the nature of claim.

What is cashless garage facility?
It is a facility whereby you avoid incurring any expenses since the company would make the payment directly to the garage after deducting the policy deductibles and depreciation. The insurance company provides cashless claim service to its customers through their network of garages. However, in case of non-cashless service, the payment incurred towards repairs would be reimbursed to you by the company.

What to do in case of an accident?

• Please arrange for medical attention if anyone suffers injuries.
• Take down particulars of other vehicles / people involved, if any.
• Please do not accept any responsibility for the accident nor commit to anybody regarding compensation, if any.
• In the event of injury, death, third party property damage, burglary, theft, house -breaking and damage due to malicious act, riot, strike and terrorist activity, immediate information to the police station concerned is essential.
• If the accident is severe in nature, and the vehicle cannot be moved, ensure proper protection of the vehicle at the spot. Please do not attempt either to start the engine or drive the vehicle after the accident and before required repairs.
• Arrange to shift the vehicle to the nearest garage of your choice and ask them to prepare a detailed estimate (labor charges with list of parts along with its prices)
• Please do not dismantle or alter the accident condition of the vehicle or repair till the vehicle is surveyed / assessed by a surveyor. Also ensure that no parts or accessories are missing at any point of time.

Back to Top