1. Why do I need to insure my motor vehicle?
    Your motor vehicle is one of the expensive assets which you own. And while driving, you are responsible for the safety of your passengers as well as other people's property and pedestrians on the road. Insurance helps cover the costs of potential damage or injuries in case of an unforeseen accident or theft.

    And above all that, in India it is compulsory by law to have motor insurance before you can drive on the roads.
  2. What are the different types of Insurance policies available? Is it compulsory to take a comprehensive cover?
    You can either opt for a Third Party Cover or a Comprehensive Policy. In India, it is compulsory to have a Third Party Policy that covers you against legal liability for injury or death or property damage caused to any third party in an accident. This policy does not cover damages or loss caused to insured's vehicle in an accident or theft.

    Whereas a comprehensive policy, offers both third party liability and own damage cover which gives protection against legal liability as well as insures your vehicle against any loss or damage. It is not compulsory to have a comprehensive cover, though it is highly advisable to have one.
  3. What is a Cover Note?
    A cover note is a temporary certificate of insurance (form 52) issued by the Insurer before the issuance of a policy, after the Insured has given a duly filled in proposal form and has paid the premium.

    A cover note is valid for a period of 60 days from the date of issue of the cover note.
  4. What is No Claim Bonus?
    No Claim Bonus is a discount provided to the insured for not making any claims on the policy during the full duration of the policy. An insured becomes entitled to NCB only at the renewal of the policy after the expiry of the full duration of 12 months.

    As per the schedule of tariff, NCB can be earned in the Own Damage section of Policies covering all classes of vehicles but not on Motor Trade Policies (Road Transit Risks/ Road Risks/ Internal Risks) and policies that cover only Fire and/ or Theft Risks.
  5. Is my No Claim Bonus transferable?
    Yes, it is transferable in case you are changing your insurer.
  6. What can be the evidence for claiming the No Claim Bonus?
    In most cases, the NCB can be availed by providing the evidence of the same to the new insurer. Evidence can be in the form of a renewal notice, a letter confirming the NCB entitlement from the previous insurer or a written declaration.
  7. Why should a policy be renewed before its expiry date?
    It is advisable to renew the policy before the renewal date as by doing so you would continue to enjoy no claim bonus and you will not have to get inspection done at the time of renewal.
  8. Where should I file a police complaint in case of any issues?
    Incidents such as "Third Party Property Damage", "Bodily Injury To Self or Third Party" or "Theft" should be reported to the nearest police station, under whose jurisdiction the incident has occurred.

    For a complete list of documents required to file a claim, please see answer to Question 5 in the Premium and Claims section.
  1. What if someone else was driving at the time of the accident? Is that person covered by my policy? Will I still be covered?
    If the person driving the vehicle is a valid license holder, the vehicle is insured for all the accidents that occurred due to the hazards specified.

    To insure the person driving the vehicle, who is not the owner, an additional personal accident cover has to be taken for unnamed passengers. For the owner-driver, the policy compulsorily has a personal accident cover, as per tariff.
  2. What is third party insurance liability?
    As mandated by the government, third party insurance covers the following:
    • Any permanent injury/ death to a person caused by your insured vehicle.
    • Any damage caused to the property (excluding vehicle) of some other individual by your vehicle. In any of the above events, the company will be fully liable to the person suffering such a loss.
  3. What if I sell/ transfer the vehicle during the insured period?
    In case you sell the insured vehicle during the insured period, you can either transfer the policy to another vehicle or endorse the policy to the new owner/ buyer of your vehicle.
  4. When will my NCB be forfeited?
    Your NCB normally gets forfeited only if you make a claim during the insurance period or there is a break in the insurance period for more than 90 days.
  5. Can I insure the accessories of my vehicle?
    Yes, you can insure the accessories of your vehicle. In case of accessories which do not get included in the showroom price of the car, they can be declared under electrical and non-electrical items. The value of such items would get added to the sum insured over and above the insured's declared value (IDV) of the vehicle.
  1. What are the factors affecting the premium amount?
    The premium rates are governed by tariff as decided by the Tariff Advisory Committee. Generally speaking, the premium payable for your vehicle depends on:
    • Type of vehicle
    • Age of vehicle
    • City of registration
    • Period of coverage (For less than 12 months) and
    • Any applicable discounts/ loadings, as per relevant General regulation of motor tariff.
  2. What is Insured Declared Value (IDV)? And how is it calculated?
    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 India Motor Tariff.

    For the vehicles that are obsolete and aged over 5 years, the IDV will be 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%
  3. Why should my place of vehicle registration affect the premium?
    As per the Indian Motor Tariff, cities are categorized into specific zones based on the registration of vehicle and these zones have different rating factors for premium. For Cars, Two-wheelers and commercial vehicles.

    Zone-A: Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi and Pune

    Zone-B: Rest of India

    The premium charged depends upon the city of registration, irrespective of the place where it is used or where the insurance in renewed.
  4. Do I have to bear any charges while making claims?
    You will have to bear the amount of depreciation as per the rate prescribed by the Tariff advisory Committee and compulsory and voluntary deductions under the policy, if you have opted for it.
  5. What are the documents required to file a claim?
    In case of own damages claim following documents are required:
    • Claim form duly signed
    • Valid R.C. copy of the vehicle
    • Valid driving license copy
    • Policy copy (First 2 pages only)
    • FIR if required (For Theft, Third party Injury/ Damage; Highway accidents-Major only).
    • Original repair bill, proof of release and cash receipt.
  6. Will the claims I make affect my renewal in any manner?
    In case you file a claim for any kind of damages during the insured period, at renewal, you will lose all the NCB that you have accrued over the years. So, it is advisable not to make any low value claims on your insurance, if you have accrued some NCB over the years.
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