Basics of Auto Insurance & offering companies in India

Auto Insurance

Insurance in today’s world is vital not only for human safety but for all important belongings which are valuable and dear to us, be its automobiles, shops, machineries, factories or all other things that we own.

Insurance for Cars/ bikes/commercial vehicles and other road vehicles, also known as Vehicle/Motor /Car/Auto Insurance, helps to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against the liabilities arising from the same .

Auto Insurance in India is a compulsory requirement for all new vehicles whether, commercial or private. The insurance companies work together with leading automobile manufacturers and they in turn offer their customer’s instant auto quotes during the vehicle procurement. Premium of the Insurance is determined by a number of factors and the amount of premium increases with the rise in the price of the vehicle. The claims include accidental, theft claims or third party claims.

Types of Auto Insurance

Insurance for Two-Wheeler:-

It covers accidental insurance for the drivers and 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.

Insurance for Car:-

Insurance for Privately owned cars is a mandatory requirement in India while purchasing a new car. The amount of premium depends on the make and value of the car, state where the car is registered and the year of manufacture.

Insurance for Commercial Vehicle:-

It covers all the vehicles which are not used for personal purposes, like the Trucks and HMVs. The 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.

Key Benefits of Auto Insurance

  • Loss or damage by accident, fire, lightning, storm, self ignition, external explosion, burglary, housebreaking or theft, is covered in the Insurance and can be instantly claimed
  • Most Companies have moved online, hence submission of forms and renewals have become easy & lengthy procedures have been eradicated
  • Cashless Claims are offered at various garages & service centers, 24×7 call centers are made available to help customers with the same
  • Numerous discounts can also be availed, for e.g. No Claim Bonus, Discount for Automobile Association Members, Discount based on Age and Profession
  • Insurance Companies also provide Towing facility in an event of a breakdown/accident, a 24×7 service which can be availed either by a phone call or online login, even on public holidays
  • Interest free EMI options available on payment through various credit cards

What is Covered:-

  • Loss or Damage to the vehicle against calamities caused by nature, for e.g. fire, lightning, storm, self ignition, external explosion, cyclone, flood, etc
  • Loss or Damage to the vehicle against Man-made Calamities, for e.g. theft, riot, accident, terrorist activity, transit by any means of transport, etc
  • Accident covers for the individual owner/driver. There are optional personal accident covers for Co-passengers also available
  • Third Party legal liability due to accidental damages resulting in the permanent injury or death of a person, and damage caused to the surrounding property

What is Not-Covered:

  • Ageing of the vehicle and Mechanical or Electrical breakdown
  • Normal Wear and tear of consumables, namely tyres, tubes, etc.
  • Damage caused to or by a person who is driving the Insured vehicle without a valid license
  • Damage caused to or by a person who is driving the Insured vehicle in the influence of drugs or Liquor
  • Loss or damage caused due to war or nuclear risk
  • Depreciation Loss or any similar consequential loss

Documents Essential:-

Certain documents are required for claiming Auto Insurance in India, namely,

  • Duly signed claim form
  • RC copy of the vehicle
  • Driving license copy
  • FIR copy in case of an accident involving another party
  • Original estimate and policy copy

List of companies offering Auto Insurance in India

  • Aviva (Expected to be launched in India)
  • Bajaj Allianz General Insurance
  • Bharti AXA General Insurance
  • Cholamandalam MS
  • Future Generali India Insurance
  • HDFC ERGO General Insurance
  • ICICI Lombard
  • IFFCO Tokio
  • Liberty Videocon General Insurance
  • L & T General Insurance
  • Magma HDI General Insurance
  • Reliance General Insurance
  • Royal Sundaram
  • SBI General Insurance
  • Shriram General Insurance
  • Tata AIG General
  • Universal Sompo General Insurance

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