vehicle insurance

Vehicle insurance (also known as auto insurance, GAP insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom. The specific terms of vehicle insurance vary with legal regulations in each region. To a lesser degree vehicle insurance may additionally offer financial protection against theft of the vehicle and possibly damage to the vehicle, sustained from things other than traffic collisions.

Auto Insurance in India deals with the insurance covers for the loss or damage caused to the automobile or its parts due to natural and man-made calamities. It provides accident cover for individual owners of the vehicle while driving and also for passengers and third party legal liability. There are certain general insurance companies who also offer online insurance service for the vehicle.

Auto Insurance in India is a compulsory requirement for all new vehicles used whether for commercial or personal use. The insurance companies have tie-ups with leading automobile manufacturers. They offer their customers instant auto quotes. Auto premium is determined by a number of factors and the amount of premium increases with the rise in the price of the vehicle. The claims of the Auto Insurance in India can be accidental, theft claims or third party claims. Certain documents are required for claiming Auto Insurance in India, like duly signed claim form, RC copy of the vehicle, Driving license copy, FIR copy, Original estimate and policy copy.

There are different types of Auto Insurance in India :

Private Car Insurance - In the Auto Insurance in India, Private Car Insurance is the fastest growing sector as it is compulsory for all the new cars. The amount of premium depends on the make and value of the car, state where the car is registered and the year of manufacture.

Two Wheeler Insurance - The Two Wheeler Insurance under the Auto Insurance in India covers accidental insurance for the drivers of the vehicle. The amount of premium depends on the current showroom price multiplied by the depreciation rate fixed by the Tariff Advisory Committee at the time of the beginning of policy period.

Commercial Vehicle Insurance - Commercial Vehicle Insurance under the Auto Insurance in India provides cover for all the vehicles which are not used for personal purposes, like the Trucks and HMVs. The amount of premium depends on the showroom price of the vehicle at the commencement of the insurance period, make of the vehicle and the place of registration of the vehicle. The auto insurance generally includes:

  • Loss or damage by accident, fire, lightning, self ignition, external explosion, burglary, housebreaking or theft, malicious act.
  • Liability for third party injury/death, third party property and liability to paid driver
  • On payment of appropriate additional premium, loss/damage to electrical/electronic accessories

The auto insurance does not include:

  • Consequential loss, depreciation, mechanical and electrical breakdown, failure or breakage
  • When vehicle is used outside the geographical area
  • War or nuclear perils and drunken driving

Consider these points to get the maximum from your car insurance:

  • Many car insurance companies offer a 24X7 helpline that offers complete information to existing as well as prospective customers. The information could be about policy details, lodge complaints or to get claim assistance.

  • Through this facility, you can report a claim to the insurance company anytime and from anywhere. The executives then guide you through the whole process and also help in identifying the nearest location where you can get assistance from authorised people or service centres.

  • It gives you warranty for a specific period on the repairs done after the accident. The warranty is applicable if the repair work of the vehicle has been done at the listed garages or service centres. This service offered by very limited insurance companies.

  • Insurance companies have tie ups with garages and vehicle service points called Network Garages where you may avail cashless transaction facility subject to deductibles and voluntary payment. These may differ with the brand of your car. If you do not take the vehicle to a networked garage, you will not be able to avail the cashless facility but you may get reimbursement of the expenditures on production of relevant documents for the claim.

  • Speedier claims settlement has become an important feature in choice of an insurance company. To facilitate this, some insurance companies ensure that once all the documentation regarding the accident (copies of FIR, diving licences, repair bills etc.) are submitted, the claim will be settled within seven days.