Motor Insurance

Motor Insurance

DON’T WORRY, DRIVE HAPPY

Definition

Motor insurance or motor vehicle insurance refers to financial agreement between an insurance provider and the owner of a motor vehicle, which includes motorcycles with and without gears, cars, buses, cabs, trucks and other four or more wheeled motor vehicles.

Motor insurance provides financial protection against physical damage borne of road accidents to person or vehicle, as well as against financial liabilities caused due to incidents involving third party people, vehicles, or property.


Benefits:

If you purchase a car insurance, you are entitled to benefits provided by your insurance provider, including:

  • Protection against damage to or loss of insured vehicle
  • Protection against loss or damage of vehicle due to a wide range of detrimental conditions such as:
    • Accidents
    • Fire
    • Theft
    • Explosion
    • Lightning
    • Riots
    • Terrorist activities
    • Natural calamities
  • Protection against injuries, disability, or death caused to person due to accidents
  • Protection against any financial liability caused by damage to property or vehicle, as well as injury or death of third party

Types of motor insurance:

There are three types of motor insurance policies you can purchase in india:

  • Private Vehicle Insurance: Insurance cover for your vehicle, be it hatchback or SUV
  • Two Wheeler Insurance: Insurance cover for your motorcycle, with or without gear
  • Commercial Vehicle Insurance: Insurance cover for cabs, goods vehicles, buses, trucks.
  • Miscellaneous Vehicle coverage: Insurance cover for special types of vehicles such as excavators, agricultural rigs, tractors, road rollers, etc.

Type of coverage:

Two types of insurance coverage is provided to customers:

  • Third Party Liability Coverage: Legally mandated for all motor vehicles under the Motor Vehicles Act 1988 and Motor Vehicles Amendment Act 2019, third party liability coverage financially compensates your for liabilities caused by your vehicle to the person or property of a third party.
  • Comprehensive Coverage: Provides complete insurance coverage against third party liabilities, as well as your own vehicle and person against damages. Self damage includes loss or damage to vehicles due to accidents, theft, fire, natural disasters, etc. Also includes financial costs due to injury, disability, or death of the insured.

Add-ons:

A wide selection of add-on plans are available for you with the comprehensive insurance cover mentioned above. Most popular among these include, but are not limited to:

  • Zero Depreciation cover: This add-on ensures that your insurer covers the cost of depreciation of your vehicle over time when you claim for insurance.
  • Engine Protection cover: Regular comprehensive coverage does not cover damage to the mechanical or electrical parts of the engine. This add-on covers damage to engine parts.
  • No Claim Bonus cover: This rider allows you to avail and preserve discounts on premiums accumulated for every claim free year even after you receive a claim.
  • Consumables cover: Cost of small components of the vehicle such as nuts and bolts, as well as engine oil, coolant, etc. are not included in the regular comprehensive cover. However, with this rider, cost of these small components are also borne by the insurer.
  • Roadside Assistance cover: The roadside assistance cover lets you avail 24x7 vehicle breakdown services, including towing and mechanic charges as applicable.
  • Tyre cover: This rider provides insurance cover to the tyres and tubes of your vehicle if they are damaged due to an accident your vehicle is involved in.
  • Return to Invoice cover: The RTI rider covers the monetary gap between the invoice value of your car (on-road price), and the IDV (Insured Declared Value: the sum assured by your insurance provider) of your policy..
  • Personal Accident cover: This rider covers any physical injury, disability, or death occurred in an accident your vehicle was involved in.
  • Key Replacement cover: The key replacement rider covers the cost of getting a new key in case the old one is lost or misplaced
  • Loss of baggage cover: As the name suggests, this rider provides coverage for loss of or damage to your personal belongings present in the vehicle involved in an accident.

Inclusion & exclusions:

INCLUSIONS EXCLUSIONS
Protection to your vehicle against all damages caused due to accidents Damages caused to your vehicle if you are found to have been driving under the influence of alcohol or other narcotic substances
Cover against death or disablement due to accident Loss or damages to vehicle due to war and nuclear accidents
Protection from damages caused due to natural disasters such as floods, earthquakes, landslides, etc. Damages caused to your vehicle if it was involved in illegal activities
Protection from total loss of vehicle such as theft up to the Insured Declared Value (IDV) Loss or damage caused while driving without a valid driving license
Protection against damages caused due to man-made disasters such as strikes, riots, arson, terrorism, etc. Coverage of routine mechanical expenses necessary due to regular wear and tear of your vehicle

Claim process

Depending on the claimant and type of claim, following are step-by-step guides on how to receive claims on your motor insurance policy:

  • Claim for damage to vehicle of self:
    • Inform your insurance provider, fill up the insurance claim form available on the policy provider's website and submit it with the necessary documents before you send the vehicle for repairs.
    • A surveyor appointed by your policy provider will assess damages and prepare a report for your insurer, a copy of which will be sent to you. In case of severe damage to your vehicle, the surveyor may also reach the accident site as soon as possible.
    • Get repairs done after the surveyor's report. You will be reimbursed only for the damages covered by this report to be eligible.
    • After repairs are done, submit the bills and documents to the surveyor, which will be forwarded to your provider.
    • If all the documents are in order, you will be reimbursed for the damages covered by your policy.
  • Claim for damage to third party:
    • After you receive a legal notice from the affected third party, inform your insurer immediately. Do not communicate, make any financial commitment, or go for out-of-court settlement with the party without informing your insurer.
    • Submit copies of valid driver's license, the RC book of your car, and the FIR filed.
    • The insurer, after verification of your documents and assessing the accident to their satisfaction, appoints a lawyer to contest the legal notice on your behalf.
    • Thereafter, if you are directed to pay for damages by the court, your insurance provider will directly make all necessary payments to the affected party.
  • Claim for theft of vehicle:
    • First and foremost, lodge an FIR at the nearest police station.
    • Submit FIR copy to your insurance provider.
    • Submit a copy of the final report after police investigation to your insurance provider.
    • Your insurance provider will self-appoint an investigator to look into the claim. Cooperate with them at all times.
    • Once your claim is approved, submit the RC book of the stolen vehicle to your provider. The vehicle owner's name will be altered to that of the insurer.
    • Submit duplicate keys of your vehicle, if available, along with a subrogation letter, as well as a notarized indemnity on stamp paper.
    • After these formalities are completed, your policy provider will disburse your claim.

The claim process and steps may vary slightly among various insurance providers, but these are the basic steps common for all claims.

Motor Insurance - FAQs

Let’s Clear Your Doubts

Insurance providers provide you with the necessary set of documents. The common things you need to keep handy are:

  • A copy of your Registration Certificate
  • Vehicle invoice
  • Copy of previous insurance policy if any
  • Other documents as specified by your insurance provider

Documents you need when filing for insurance claim include:

  • A copy of the Registration Certificate and tax invoice
  • Insurance policy document
  • A copy of driver's license
  • Bills and payment receipts for repairs
  • Copy of FIR/Panchanama in case of Theft or Third Party damage/death/bodily injury.
  • Any other documents your insurance provider may specify.

Because it is compulsory. Purchasing a Third Party Motor insurance is legally mandated under the Motor Vehicles Act 1988 and Motor Vehicles Amendment Act 2019. Therefore, you have to get at least a third party motor insurance if you want to drive your car on the road.

Established in 1966, the Automotive Research Association or ARAI is the leading governmental research and development organisation for automobiles. ARAI is additionally the primary testing and certification agency under the Motor Vehicles rules of 1989. In terms of vehicle insurance, if you have an anti-theft device approved and certified by ARAI in your vehicle, you will be eligible for discounted rates on your premiums of your vehicle insurance.

Become our POSP

Let’s Grow Together

JOIN ONE OF THE LEADING INSURANCE BROKER AND EARN UNLIMITED INCOME

 

To increase insurance penetration in India, government recently has allowed a new type of distribution system to market the most basic insurance policies called as point of sale or POS. Now you can become a POSP (point of sale person) of Eureka Insurance Broking Pvt. Ltd.

 

Enquiry Form

Our Insurance Partners
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand
brand