Car Insurance : Whether you have a personal car or you are an employee of a company and are using that company's car, it is necessary to have car insurance. In India it is considered inauspicious to cross the path of a cat and the vehicle stops on the road, in such a country the importance of car insurance increases even more.
'Lemon-Green Chilly' can protect you from 'evil eye' but not from unexpected and impossible events. Buying car insurance is very important to avoid loss of events. Car insurance is the only way that can save us from the troubles that may happen during a car accident.
Types of Car Insurance
As far as I know, vehicle insurance is very necessary in many countries, driving a vehicle on the road without insurance is considered a legal offense. Driving a vehicle on the road without insurance is also a legal offense in India, but some new rules of vehicle insurance have also been implemented in India. like the obligation to take third party insurance + own-damage insurance in the package form for the vehicle has been done away with, due to which it has become a little cheaper and easier to get a vehicle in India.
When buying a new vehicle, it is up to the owner to take third party insurance and own damage cover or not. If the owner wants, then third party insurance and own damage cover can be taken separately. I will tell you further what is Third Party Insurance and Own Damage Insurance?
It is necessary to take vehicle insurance while buying a vehicle in India. Two wheeler or any type of vehicle, commercial or personal, without insurance the vehicle cannot be driven on the road, and we all know that the vehicle moves on the road itself, it does not move in the courtyard of the house, so vehicle insurance must have.
Here we are discussing only car insurance, so we will only discuss about car insurance. There are 4 types of insurance policies for a car, which also include third party insurance and own damage insurance. Now I will discuss about the next 4 types in detail-
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1. Third Party Insurance
Till now it is legally mandatory to take third party insurance while buying a new car in India. Apart from India, this is the law in other countries of the world as well. Under third party insurance, compensation is paid if a person walking on the road with your car gets into an accident, cause damage to any person or any other property.
The legal liability for the incident or damage caused by your car is met through this policy. In case of bodily harm or death to any person from your car or any type of vehicle, you get compensation from this insurance plan. This insurance does not take any responsibility for any damage caused to the owner or driver of the vehicle. As per the Indian insurance rules, it is mandatory to take 3 years third party cover for buying a car and 5 years for a two wheeler.
It only indemnifies third parties and their property for damages. It is best for those who are planning to insure their car as it is necessary (but we do not recommend doing so).
The coat you get for a TP cover is the sum of its components which includes:
• Third Party Basic Premium
• Personal accident cover owner premium for driver - Rs. 100
• Goods and Services Tax - 18%
2. Own Damage Policy
The policy which is bought only to compensate for the damage caused to the vehicle, that policy is called own damage policy. In this policy, the insurance company gives compensation to compensate for the loss of the car or any type of vehicle. Under the own damage section, following types of damage is covered-
1. Any type of fire, Explosion, Self-ignition, Lightning etc.
2. Vehicle destroyed in earthquake.
3. Destruction of the vehicle in any kind of natural calamity such as flood, storm, cyclone, tornado, thunderstorm, water flotation, hailstorm, snowfall.
4. Destruction of the vehicle due to Landslides/Sliding Rocks.
5. Theft case
6. Vehicle damage due to riots and strikes.
7. Accident due to external factors.
8. Malicious act.
9. Terrorist act.
3. Comprehensive policy or package policy
When Third Party Insurance and Own Damage Policy are taken by including them in a single package, then it is called Comprehensive Policy or package policy. With such a policy, damage to other person and vehicle as well as damage to your vehicle is also compensated by one policy. Indian Insurance rule has done away with the requirement of taking this long term package policy.
Now it will be not mandatory for the new vehicle owner to take third party insurance and own damage insurance in the package. From August 2021, it will be necessary to take third party cover for 3 years for new four wheeler and 5 years for two wheeler. Two options available for the own damage cover. First, the customer can take one year's own damage cover package with third party insurance and second is the, two separate policies for third party and own damage.
4. Personal Accident Insurance
If the driver of the car dies in a car accident or suffers physical injury, then personal accident insurance comes in handy in such a situation. Taking this insurance is also necessary under third party insurance. Apart from the driver, the person sitting in the front seat and other passengers can also be included in this insurance.
It may also happen that the car owner is driving himself and if he dies in a car accident or becomes completely disabled, then owner/his family members get compensation. According to the insurance rules in India, it is mandatory for the owner/driver and the person sitting with car insurance to take a personal accident insurance of minimum 15 lakhs.
All of you are probably aware that a few years ago in India, accident cover has been separated from the car insurance policy. That is, the car owner can take both the car insurance policy + personal accident cover while buying the new car. If you want, you can take personal accident policy separately from any other insurance provider as a general personal accident insurance. If you have already taken personal accident cover of 15 lakhs or more before buying a new car, then there is no need to take compulsory personal cover under car insurance.
If you want, you can also add additional benefits with car insurance such as accessories cover, engine protection, no claim bonus protection, zero depreciation, roadside assistance, return to invoice etc. Car insurance protects your car, you, your driver and also your passengers, if you have any kind of accident with your car, then car insurance also helps in dealing with that problem. In the context of all these features, you can understand how important car insurance is.
Importance of Car Insurance
As I have already written that there are some people in India who think that only "lemon-chilli" can solve problems but in reality it is not so at all. Problems have to be solved in advance, no problem comes by giving a message in advance. There is only one solution to the problems caused due to a car accident "Car Insurance".
Let's say that according to the cost of the insurance plan, the price of your car is Rs.8,00,000. If you take car insurance, then you have to pay a fixed premium of Rs.10,000-12,000 in a year. You will find this amount very heavy now, you can also think that this amount has to be paid to the insurance company in vain.
Now you have to imagine that if there is an accident with your car or if a person dies due to accident with your car… then what will happen? Maybe you or your driver may die in a car accident, or it may be permanent handicapped, then what will happen?
The only thing that can save you from all such troubles is “Car Insurance”. If you do not have car insurance, then in a minor accident your car will not be repaired for less than Rs.50,000. The medical bill of the injured person will have to be paid separately. No car insurance = financial expense + emotional torture + stress + discomfort.
Damage to third party property amounting to Rs. 7.5 lakh will be given and in case of third party bodily injuries/death, it will be taken to the Tribunal Court. For a premium of Rs.100, the owner-driver personal accident cover (individual cover) subject to a maximum compensation of Sum Assured up to Rs.2 lakh in the following cases.
1. Death - compensation scale - 100%
2. Loss of sight of two limbs or two eyes or vision of one limb and one eye - compensation scale - 100%
3. Loss of one leg/one side leg and arm or one eye - compensation scale - 50%
4. Permanent total disability other than those named above - compensation scale - 50%
Additional cover in car insurance
Zero depreciation cover : Replacement or repair of rubber, plastic, glass and other materials otherwise not covered by the regular policy.
Engine protection : For times when monsoon is in its destructive form, and makes your car engine weak.
Protection of NCB : Continue to enjoy a discounted premium on your No Claim Bonus, year after year, even after making a claim during the policy term.
Invoice cover : Recover as much as you can in case of total loss (such as theft or very bad accident) of the car's on-road value or declared value insured.
Key benefits of car insurance
Apart from being a mandate, car insurance offers many other benefits that make it useful for car owners in India and other countries. Now I am going to write about the benefits of car insurance-
• Coverage against any damage or loss caused to the insured car.
• Accidents, arson, theft, self-injury, Coverage against loss or damage caused by explosions, lightning, riots, terrorist activities or natural calamities.
• Personal Accident Cover
• Coverage against pecuniary liability due to injury or death or damage to property of a third party.
Best car insurance companies
Out of the many companies in the car insurance space, only a few offer the best settlement ratio and make a mark. Here is a comprehensive list of companies that offer car insurance plans with best settlement ratios-
How to save on car insurance premium?
1. Choose the right IDV : A lower IDV demands a lower premium payment. (But calculate wisely, as the IDV is the maximum amount the insurer can indemnify).
2. Avail No Claim Bonus : For each consecutive premium-free year, your responsible driving skills are rewarded with a bonus of up to 50% on your premium. Isn't it a pleasure.
3. Install Safety Devices : Anti-theft devices, approved by the Automotive Research Association of India (ARAI), can fetch you a discount of up to 2.5% on your car insurance premium.
4. Become an AAI Member : The Automobile Association of India, operated by IRDAI, offers you a discount on self-harm premium.
Compare Car Insurance
Compare car insurance policies using a handy tool to get the best quotes from top insurance companies.
• 12+ Insurance Companies in India
• 20+ plans available in the market
• Choose from 16+ unique add-on covers
• 3500+ Cashless Garage Network
How does comparing car insurance help?
You can compare policies of multiple brands instantly. Compare quotes online to choose the right car policy according to your need and convenience. Here's how Comparison will help you: Here's how Comparison will help you:
1. Same car, different insurance companies. Different car rates : Not all insurers provide the same coverage and premiums. This is why you should compare car policies. The comparison helps you find the ideal coverage at a suitable premium. With us, you can compare car insurance quotes from 13+ top insurance companies in India in a matter of seconds to get the best premium for your car policy.
2. Customizable Policy: When you compare quotes online, you get a completely customizable policy. Choose from various car insurance policies, customize your policy according to the Insured Declared Value (IDV) of the car and add-ons . And get genuine quotes from leading companies in India. See what's in trend for your location and your car: Not sure which plan to go for? do not worry. Many site available, when you compare quotes online, these will share information about which policies people with similar car models are buying to help you find the right policy and help people living near your location. Helps to know which is the preferred car insurer.
3. Your selection of insurance add-ons: Car insurance add-ons save you a lot of money at the time of claims. Online comparison tool helps you to check and compare other add-ons provided by different insurance companies. However, not all insurance companies provide all add-ons. You can compare which companies provide you the required add-ons and which do not, and you can choose accordingly.
4. Discounts on Car Insurance (Who doesn't want this) : Yes, companies offer discounts when you buy a car policy. Every insurance provider gives some leeway against the self damage component of your car policy. The discount on your car varies from insurer to insurer. Compare with the different car insurance policies to find out which policy gives you the most discount for your car. Some insurance companies offering up to 60% off.
5. Is your preferred garage covered under cashless claims?: Is the garage ready for your car? Most of us have one. Compare which garages are covered under 'cashless claims' for each insurance company. You can get a list of cashless garage networks using our handy car tool.
6. Side-by-side comparison: Compare car insurance policies by looking at aspects like premium, IDV, available add-ons, deductibles, discounts offered, etc. to get the right policy. We make the evaluation process easy and help you pick the right plan for your vehicle. Benefits of comparing car insurance policies online.
Benefits of comparing car insurance policies online
1. Convenient :
Get instant quotes from India's top car insurance companies, without any hassle. A complete comparison can also be done online from your home.
2. Correct understanding of policy details :
You need to understand the ideal coverage, the right price, and possible discounts for your car. You also get accurate information about deductions and exclusions. This expedites your buying decision.
3. Multiple Choices :
With a plethora of options to choose from, you can ensure yourself that the best policy is suitable for your car. By comparing, you will also get to know whether there are new insurers in the market that have better plans.
4. Save Money :
You can save money throughout the entire process of buying car insurance by comparing policies. A side-by-side comparison gives you free quotes offered by various insurance companies.
5. Transparency :
It is better to compare car insurance online as you can clearly see the product details offered by the insurers. You can compare and see who is charging higher premiums and on what basis. Apart from this, you can also read reviews of various plans to choose from. You get what you see.
6. Be Smart :
The online car insurance comparison platform has thousands of resources such as videos, in photographic and articles to help you understand the finer points of insurance. Be a smart buyer and understand what you are buying. You will never need to depend on the agent again.
Car Insurance Renewal Checklist
When renewing your car insurance policy online, leave no room for 'doubt'.
Reasonable coverage: If you only have a third-party plan, you should consider getting a comprehensive policy. In case of an accident it will cover you for the huge repair expenses of your car.
Check IDV: You need proper compensation in case of theft/loss. Based on the age of your car, recalculate the Insured Declared Value of your car against the premium. By this, you will know whether you have got the best price or not.
Check out the claim: It makes a huge difference. If you haven't checked your previous insurer's claims ratio, don't miss it, verify now.
Check Cashless Garages: Make sure you find cashless garages near your area that will provide repair services for your car.
Ideal Add-ons: If you didn't know how add-ons can help you during claims, this is the time. If your car is less than 5 years old, consider a cover like zero depreciation or engine protector or refund of challan.
Deductions and Exemptions: Check if you have all the exemptions you are eligible for. Deductible amount is the amount that has to be paid every time before a claim is made. If your policy includes this, make sure it is within your budget.
Last Word
Dear readers, complete information about car insurance has been provided in very simple words. I sincerely hope that you will be completely satisfied with this article. After reading this article, you will not need to read any other article related to car insurance. If you are satisfied with the information about car insurance then share it with your friends and stay with me.
1 Comments
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