Auto & Car Insurance FAQs

When you buy Motor Insurance Online there is no documentation and you get your policy instantly.

There are two types of Motor or Car Insurance. They are:
(i) Liability Only Policy - This covers Third Party Liability for bodily injury and death and Third Party Property Damage. Personal Accident cover for Owner-Driver is also included.
(ii) Package Policy - This covers Loss or Damage to the vehicle insured (Own Damage) in addition to the Third party cover. It is also known as comprehensive cover.

The Private Car can be used for social, domestic and pleasure purposes and also for business purposes excluding the carriage of goods other than samples by the insured or his employees.
The Insurer will protect the customer against any loss or damage to the Private Car and its accessories whilst thereon for the following events:
    - Fire, explosion, self ignition or lightning
    - Burglary, housebreaking or theft
    - Riot or strike
    - Earthquake (fire and shock damage)
    - Flood typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost
    - Accidental external means
    - Malicious act
    - Terrorist activity
    - Whilst in transit by road, rail, inland- waterway, lift, elevator or air
    - Land slide, rock slide

The exclusions are:
    - Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown,
      failure or breakages
    - Any damage to tyres and tubes unless the vehicle is also damaged. The liability of
      the Insurer will be   restricted to 50% of the cost of replacement if the claim is admitted.
    - If the private car is driven by a person who is under the influence of intoxicating
      liquor or drugs at the time of loss
    - Driving without a Valid Driving Licence
    - If the vehicle is used for hire or reward, carriage of goods other than samples, racing
      and other racing related purposes and   motor trade purposes.

The Insured will be covered for any liability arising from any accident caused by or arising out of the use of the private car in respect of:
     - Death or bodily injury to third parties (unlimited liability)
     - Damage to the third party property (minimum of Rs.6000/- and max of Rs.7,50,000

All motor policies are annual policies issued for a period of twelve months. However for the purpose of renewal an extension to a further period (which should be less than 12 months) can be allowed with the approval of a competent authority. An additional premium will be collected for such extensions. Period less than 12 months can be given on Short Period basis only with the approval of the competent authority.

We require a proposal form in the following situations
     - New Business
     - Other Company renewal 
     - On Transfer of Interest
     - On conversion of Liability Only cover to Package Policy
     - Change / Substitution of the vehicle
     - On alteration / improvement of vehicle either during the period of the policy or
       during renewal

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Customer need to produce the vehicle for inspection under the following circumstances:
     - In case of break in insurance
     - In case of conversion of TP cover to OD cover
     - In case of covering imported vehicles
     - In case of fresh payment received after cheque bounce
An authorized person from the Underwriting department will inspect the vehicle.

The premium rating for Private Cars is based on the following factors:
     - Insured's Declared Value (IDV)
     - Cubic Capacity of the vehicle
     - Geographical Zones
     - Age of the vehicle

For the purpose of rating, the whole of India is divided into two zones depending upon the place of registration. The zones are:
Zone A - Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi and Pune.
Zone B - Rest of India

IDV means Insured's Declared Value. It is the value of the vehicle, which is arrived at by adjusting the current manufacturer's listed selling price of the vehicle with depreciation percentage as prescribed in the Tariff.
 
Manufacturer's listed Selling Price will include Local Duties/Taxes, excluding Registration and Insurance.
For the vehicles that are obsolete or aged over 5 years, the IDV will the value agreed between the Insurer and the Insured.

The value of the obsolete vehicles and the vehicles aged over 5 years are arrived by our Assessment Team with the help of various resources like IMAs, Panel of Surveyors, Car Dealers, Second Hand Car dealers, etc.
Depreciation slabs for arriving at IDV are below:

SCHEDULE FOR DEPRECIATION FOR ARRIVING AT IDV

AGE OF THE VEHICLE                                    % OF DEPRECIATION FOR FIXING IDV

Not exceeding 6 months                                           5%

Exceeding 6 Months but not exceeding 1 Year           15%

Exceeding 1 Year but not exceeding 2 Years              20%

Exceeding 2 Years but not exceeding 3 Years             30%

Exceeding 3 Years but not exceeding 4 Years             40%

Exceeding 4 Years but not exceeding 5 Years             50%

Those electrical/electronic items that are not supplied by the vehicle manufacturer along with the vehicle are called Electrical/Electronic accessories. E.g., Music system that does not come along with the vehicle.

The discounts that can be allowed under the Private Car policies are:
     - Voluntary Deductible discount
     - No Claim Bonus
     - Automobile Association Discount
     - Discount on Vintage Cars
No other discounts are permissible.

     - It is a reward for No claim in the previous year. It can be accumulated over a
       period of time
     - Starts with 20% and goes up to 50%
     - NCB becomes nil in case of a Claim
     - NCB follows the fortunes of the customer and not the vehicle
     - Validity - 90 days from the date of Expiry of the policy
     - NCB can be utilized within 3 years (where the existing vehicle is sold and a new
       car is purchased)
     - NCB recovery to be done in case of a Name Transfer
     - NCB gets transferred to the legal heir in case of Death of customer
     - NCB can be transferred to a new vehicle in case of Substitution of vehicle of the
       same class
     - NCB earned abroad can be given in India

The various PA covers under Private Car policies are:
     - PA to the Owner Driver
     - PA to the Paid driver
     - PA to the Unnamed occupants
     - PA to the Named occupants

If the customer sells the vehicle to another person, the Insurance can be transferred in the name of the buyer. The buyer (transferee) has to apply for transfer of Insurance with us, within 14 days from the date of transfer of the vehicle in his name. If the customer wants to substitute another private car of his in this policy, the policy will not be transferred to the buyer. The buyer (transferee) has to buy a fresh insurance.

An endorsement is a written evidence of an agreed change to a policy. It is a document that incorporates changes in the terms of the policy. If there are any alterations to be done in the policy the customer needs to approach the Insurance Company to effect the change in the policy. This is done by way of an endorsement.
An endorsement may be issued at the time of issuing the policy to provide additional benefits and cover (e.g., legal liability to driver) or to impose restrictions (e.g., accidental damage deductible). The wordings of those endorsements are provided in the tariff. An endorsement may also be issued subsequently to record changes such as change of address, change of name, change of vehicle etc.

     - Premium Cheque
     - Renewal Reply Form / Notice
     - If any changes are required in the coverage, the customer can
       incorporate the same in the renewal reply form

Yes, the policy can be cancelled at the option of the customer with 7 days notice to the insurer and the Insurer will cancel the policy on Short period basis and refund of premium if any, will be made. The refund will be subject to no claim under the policy and retention of minimum premium of Rs.100/-. But cancellation would be made only after ensuring that the vehicle is insured elsewhere at least for Liability Only policy.

If cheque bounce intimation is sent to the customer, the customer needs to approach the nearest office of the Insurance Company for fresh payment immediately. The customer needs to produce his vehicle for inspection along with bank charges of Rs.200/- to be paid. It is more critical in case of Motor insurance because the vehicle will be on road without any insurance and if any claim arises during the intermediate period, the Insurer will not be in a position to pay the claim since the premium has not been received.