Motor Insurance

Motor insurance or vehicle insurance covers various vehicle types, including cars, two-wheelers, trucks, autorickshaws, and electric vehicles (EVs). It safeguards you against third-party liabilities arising from an accident involving your insured vehicle. Moreover, a motor insurance policy provides financial coverage for damages to your own vehicle from accidents, natural disasters, theft, and fire. In India, you should have at least third-party motor insurance to drive legally in public spaces.

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Features of Motor Insurance

A vehicle insurance policy comes with several features that can be beneficial for the policyholder. Here are some features that you should know:

• You can purchase motor insurance online on Policybazaar.com in a hassle-free manner. Simply choose the plan for yourself after comparing quotes from the right motor insurance companies.
• You can also renew vehicle insurance online from the comfort of your home.
• You can add or remove any particular add-on as your requirement. You can do it while purchasing or renewing the insurance plan. Add-ons are optional covers that you can purchase to enhance the coverage of your motor insurance policy.
• Motor insurance not only covers damages from an accident but also theft, natural calamity, fire, vandalism, and manmade disasters.
• You can also raise a cashless claim against your motor insurance. Under this, you can get your vehicle repaired in a network garage without paying out of your pocket.
• Motor insurance also has a No Claim Bonus (NCB) feature. It is the discount on your renewal premium you get from your insurer if you don't make any claims during the policy year.

Difference Between Third Party, Comprehensive and OD Vehicle Insurance

Why Should You Buy Vehicle Insurance?

Do you know that around 4 Lakh people meet with road accidents every month? A survey by the World Health Organization found that India had the highest number of road deaths globally in 2012.

Considering this and the poor road conditions, motor insurance became mandatory by law to drive legally on Indian roads. It not only gives financial protection to you but also covers third party damages. Driving without a vehicle insurance policy can lead to heavy penalties and even imprisonment for up to 3 months.

A few private insurers offer a large number of other utilities to the policyholders, like:

• Direct settlement or cashless claims at network garages
• Depreciation Cover
• Engine Protection Cover
• 24X7 Roadside assistance
• Towing Facility

Things to Consider While Buying Motor Insurance Online

Here are some important things you need to keep in mind while purchasing a motor insurance plan:

• Coverage: While purchasing motor insurance, check if that particular insurance plan is providing you with the coverage you require.
• Add-on: If you are not satisfied with the kind of coverage your desired comprehensive insurance plan is providing then you can always consider purchasing an add-on as provided by your insurer.
• Personal Accident Cover: Make sure that the motor insurance you are planning to purchase comes with the personal accident cover.
• Claim Settlement Ratio: Before purchasing a motor insurance plan, check the claim settlement ratio of your desired insurance provider.
• Network Garages: Check if your desired insurance provider has a good network of vehicle repair garages.
• No Claim Bonus: Check if the insurance company offers NCB and lets you transfer it to another insurer.
• Read Terms & Conditions Properly: Make sure that you read the terms and conditions properly before signing any documents.
• Zero Depreciation: As soon as the car comes out of the showroom, its price drops down to almost half the amount you have bought it for. To maintain the monetary value of your vehicle, it is suggested that you opt for the zero depreciation add-on to get the best coverage amount after the depreciation.

Parameters Affecting Vehicle Insurance Premium

Several factors are taken into account when determining the premium of a motor insurance policy. These are:

• Make & Model: The premium of your insurance plan depends upon your vehicle's make and model, cubic capacity, and variant.
• Age: The depreciation value, as well as the insured declared value, depends upon the age of your car.
• Engine: The engine type whether it is a petrol engine or a diesel engine will affect the IDV that might increase the premium amount.
• Location: The premium amount of your vehicle depends upon the location of the car. For instance, if you live in a metro city then the premium of your vehicle insurance policy would be higher because of the high risk of an accident.
• Add-on: The motor insurance plan comes with a particular set of coverage but the insurance companies also provide add-ons so that you can enhance the coverage if you are not satisfied with the existing coverage.
• No Claim Bonus: The insurance companies provide a discount on the successive year motor insurance renewal for not raising a claim during the previous policy tenure.
• Online Purchase: For a hassle-free experience and lower premium rates, it is suggested to purchase vehicle insurance online as you can compare different plans and purchase the one that suits your requirement as well as your budget.

How to Buy Motor Insurance Online?

If you have purchased a new vehicle, you can easily compare and buy motor insurance for your vehicle from Policybazaar.com. Here is how to do it:

• Visit the ‘Motor Insurance’ page on the official website
• Enter your vehicle number on the given form
• Select your vehicle details such as make, model, RTO, variant and fuel type
• Fill in the registration form and proceed
• From the given vehicle insurance quotes, choose the one that suits your requirements
• Select additional covers that you wish to include in your plan
• Make premium payment online via any of the given payment methods
• Once you have made the payment, your motor insurance policy will be issued instantly.

Benefits of Motor Insurance Renewal Online

When you purchase motor insurance online, you get to compare different plans in the comfort of your home. With the advent of digitalization, several insurers have launched their mobile apps to make your insurance buying experience even smoother. Since an insurance plan comes with validity, the policyholder is required to renew vehicle insurance before expiration. Renewing vehicle insurance online has its own advantages. They are as follows:

• You do not have to pay the fees to any insurance agent as you are doing it yourself.
• You get to choose from multiple add-ons available on the website.
• You can add as well as remove any particular add-on as per your requirement.
• You do not have to visit the insurer's office to get the insurance plan renewed.
• It saves a lot of your time as you have the option of doing it on your personal computer by visiting the website or on the mobile application of the insurer.
• When you renew motor insurance online then you get the option of making the payment online through secure gateways.
• The insurer will instantly issue the updated motor insurance plan to your email ID as soon as you make the payment.

Motor Vehicle Rules Updation by IRDAI

In an initiative to make motor insurance more affordable for buyers, IRDAI updated the rules in 2018 and 2020. Check the table below to learn about those updates.

Here are some other updates made by the Insurance Regulatory & Development Authority of India.

• The sum insured amount for personal cars will be based on the road tax, on-road price, registration and manufacturer accessories.
• The expiry date of a long-term plan and third-party plan won't match if you purchase a standalone own damage insurance plan on different dates.
• The No Claim Bonus has been standardized by the IRDAI with a renewal range of 20%-50%.
• Electric vehicle insurance premium amount will get the benefit of a 15% discount on third party insurance cover. The electric vehicle owners can withdraw the long-term insurance from one company and transfer it to another.

Why buy Motor Insurance Online from Policybazaar Insurance Brokers Private Limited?

With multiple ways of purchasing vehicle insurance online, Policybazaar.com lets you compare different insurance plans in one place. Some other advantages of purchasing motor insurance from us include:

• 24*7 Claim Assistance: A policyholder can get claim assistance any time of the day by opting for the 24*7 claim assistance feature.
• Cashless Assurance: The cashless assurance facility allows you to avail cashless claim settlement without having to pay anything from your pocket.
• 3-Days Repair Facility: Policybazaar also offers a 3-day repair facility in the network garage of the respective insurance company.
• Free Pickup and Drop: If your car has been hit by an accident, we will also offer free pickup, get it repaired in the network garage and drop the insured car at your home.
• Self-Video Claims: With the help of self-video claims offered by Policybazaar, a policyholder can make and upload the video of car damages on the PB Claims App and get his/her claim settled in 24 hours.
• Windshield Claims at Home: This advantage lets a policyholder receive windshield repairs at home. Moreover, availing of this feature also does not affect the NCB of an insured car.

How to File a Motor Insurance Claim?

The documents and formalities involved in a vehicle insurance claim settlement will depend upon the type of vehicle and nature of the loss.

Filing for a Claim in Case of Damage to Owned Car/ Two Wheeler/ Commercial Vehicle

To initiate the process, the policyholder is required to submit a detailed estimate of the loss to the insurance company. Surveyors then carefully inspect the damaged vehicle and submit their survey report with the insurance company who will review and examine it. Once the survey has been done, the insured vehicle is taken to the network garage for repairs. After repairs, the insurer will settle the claim directly with the garage.

Apart from the claim form, other documents required for processing claims are:

• Fitness Certificate (Commercial Vehicles)
• Driving License
• Registration Certificate Book
• Final Bill from repairers
• Police FIR

Third Party Claims

On receipt of the notice from the insured or third party, the matter is transferred to the Motor Accident Claim Tribunal. Complete information about the accident is obtained from the insured along with the following documents-

• Police Report
• Driving License
• Medical Certificate
• Death certificate in case of a fatal claim