Should I go for a comprehensive car insurance or will a third-party liability cover do?
A third-party liability cover is mandatory per the law. However, a third-party insurance only covers damages caused to the other party’s vehicle. A comprehensive insurance, on the other hand, is broader and covers your own vehicle besides providing third-party coverage. Therefore, in order to minimize your risk, it is advisable to go for a comprehensive cover.
How do I choose the Best Car Insurance Policy?
There are several parameters that you should keep in mind while choosing an insurance policy:
- Policy Inclusions
- Policy exclusions
- Claim settlement ratio (i.e. the percentage of claims that the insurer has honoured)
- Availability of cashless facility
- Other benefits (such as roadside assistance, etc.)
- Discounts applicable
- Premium outgo (if you opt for add-ons and if you don’t opt for add-ons)
- Available garage network in your location
Also, your insurance requirement can vary due to factors such as how prone your vehicle is to thefts, the age of your vehicle, etc. If you own an expensive high-end car, it is better to opt for a comprehensive cover.
Why does car insurance premium vary from one insurer to the other?
Each insurance company has varied coverage and set of guidelines due to which the insurance premium will vary. Also, the premium varies depending on the Insured’s Declared Value (IDV). If you quote a lower IDV for your car, your premium outgo will be lower. However, you will be eligible for a cover not exceeding the IDV of your car.
What is a No Claim Bonus (NCB)?
A No Claim Bonus (NCB) is a reward for being a safe rider. You are eligible for an NCB in the subsequent year at the time of renewal, provided you have not claimed insurance for a period of one year from the date of commencement of your policy. Further, your discount increases for each year of you not making a claim. Typically, the bonus is applied starting from 20% going to a maximum of 50%.
Can I redeem my NCB if my policy expires?
You will still be eligible for an NCB in case of policy expiry provided you renew your car insurance within 90 days of the expiration.
Can I transfer the NCB I have earned from one vehicle to another?
Yes. Several insurers offer a convenient feature where the NCB you have earned can be transferred from one vehicle to another. However, this is applicable only to vehicles owned by you (registered in your name) and cannot be applied to a policyholder other than you. Further, it may be noted that the vehicle type is required to be in the same category. In other words, if you have earned a No Claim Bonus for your car of brand A, you can transfer
Can I Renew my car insurance policy online?
Yes. Renewing your car insurance online is a simple process. Insurers allow you to renew your policy online a few weeks prior to the policy expiry date. In most cases, you are expected to renew your policy 60 days prior to expiry of the existing policy.
What is Break in Renewal?
Break in renewal refers to policy lapsation owing to non-payment of renewal premium on time. A vehicle insurance is an annual contract with the insurer, which requires to be renewed every year. On purchase, the policy will remain in effect from the date of purchase until the midnight of one day prior to that date the subsequent year. If you forget to renew your policy, you will have to get the policy renewed – which can be done from the same insurer or another insurer.
Is it possible to upgrade to a comprehensive insurance from a third-party insurance?
Yes. Moving to a comprehensive insurance cover is a simple process. You can get in touch with us at 1800-XXX-XXX or write to us at email@example.com. In addition, please submit a copy of your previous year’s auto insurance policy document as well as a copy of your car’s registration certificate.
Is it possible to pay my car insurance premium in instalments?
No. The Indian Insurance Act, 1938, does not allow you to pay your auto insurance premium in instalments. A workaround for this is to buy your insurance online via a credit card. You can then check with your credit card company if the amount can be converted into Equated Monthly Instalments (EMI) and pay accordingly.
What is a cover note?
this to another car registered in your name. The bonus, however, cannot be applied to a commercial vehicle, a heavy vehicle such as a truck or Multi-Purpose Vehicle (MPV), or a two-wheeler.
A cover note is proof of purchase of insurance issued by the insurer as a temporary proof of insurance coverage. A cover note is valid for 60 days from the date of its issuance. The same is replaced by the original document within this period.