Frequently Asked Questions (FAQs) – Motor Insurance (Private Car Policy)

The Motor Vehicle Act of 1988 mandates that every vehicle shall have an insurance policy. An insurance policy provides a blanket cover protecting you from losses, accidental, theft, or otherwise. Additionally, car insurance also compensates for damages to co-passengers and other vehicles.

Contrary to popular opinion, any car that is used for domestic, residential, and social causes, including business purposes is a private car. However, the vehicles that are fitted with a carriage for loading goods for the insured individual or the passengers is not a private car.

While executing the claim process, every insurance company deduct some amount from the final claim value. The deductible amount varies with the type of vehicle under question. The deducted amount is called a compulsory deductible.

This amount that you agree to pay in the wake of a claim executed by the policyholder. However, this amount is in addition to the compulsory deductible. Higher voluntary deductible means lower premium and vice versa.

Out of the two types of car insurance, Third-Party and Comprehensive Insurance, the latter covers damages to you, your property, along with damages to the third party (body and property). In contrast, the third-party insurance body injury or death and property damage of the other person.

Until and unless you receive the original documents pertaining to the insurance, a cover note is issued to certify the vehicle’s insurance. The agent issues a cover if you wish to take the offline route for getting car insurance.

For better accessibility, customers can avail of Two-Wheeler, Car Insurance, and commercial vehicle insurance online. Following a simple process of submitting the details, you can obtain the final quote before moving ahead. However, the quotes may vary depending on several factors.

Select a reputed insurance provider followed by their claim settlement time and ratio. Check for the added features like garage network, cashless claims, accessibility benefits (online payments and claims). Run a comparative analysis before selecting your ideal insurance provider.

Buying insurance online is akin to shopping from any online store. The product differences apart; the entire process is similar to what you are exposed to with any other domain. With top-notch SSL security certifications, data privacy and security is ascertained. Visit websites like https://www.eindiainsurance.com/ for competitive premiums for your car.

The online car insurance policy buying process will be over before you know it. This is provided that you have all the documentation and information ready. In this case, it won’t take more than 5 minutes to complete the process.

The paperwork of your car insurance policy contains the data of inception and expiry of the policy. To stay updated about its status, you need to check the date of creation periodically. It is also essential to renew it before expiry.

Post-expiration, you can do a self-inspection of the car, upload the pictures for the surveyor to review and get an instant online 4 wheeler insurance policy after successful online payment. This arrangement is, however, possible for private insurance and not applicable for TP cover.

If you have lost your car insurance policy document, inform us immediately by either contacting the customer service representative at your insurance company or sending a message on the official company website. You can also reach out to your intermediary who helped you buy the policy.

You can switch to a different plan but switching your insurance policy midway is not recommended. However, it is beneficial to switch after 2 to 3 years which can help cost saving by 5 to 15%, depending on the insurance provider.

Discounts and offers including the Claims Free Experience, Opting Voluntary Excess, Membership with Approved Automobile Associations, and Installing approved Anti-Theft Devices are applicable under private car insurance policy.

In case your car breaks down or meets with an accident in the middle of the road without access to mechanical help nearby, the Roadside Assistance program services are available for the insured under most insurance policies…RSA is normally offered as an add-on by the insurance company which the insured will need to opt for by paying a little additional premium. It is a recommended add-on.

Over time, any object loses its value perpetrated by factors such as age, damages, wear and tear, among others. Similarly, the reduction in the monetary value of the car due to such factors is called depreciation.

In case your driver incurs an injury or loses his life while driving your car, you are liable to pay for the losses to him or his family. Most insurance companies offer this coverage for you at an additional premium.

Provided that you state your membership status at the time of purchasing the insurance policy, you are eligible to claim a discount, normally of around 5%.

For a new car, a minimum of 3 years Third Party insurance policy is compulsory in addition to a 1-year of 3-year Own Damage cover. For old cars, however, a 1-year policy cover is mandated.

Car insurance for a holder of learner’s license is essential; a novice driver might be more vulnerable to untoward incidents. It is possible to buy insurance for a learner’s license holder, but the premium will be higher than the average.

When a policyholder doesn’t make any claims during the policy period, he/she is rewarded with a No Claim Bonus (NCB). Now, this discount can range from 20% upto 50%, depending upon your track record of not making a claim. While making a claim for massive damages serves the whole purpose of taking insurance, if you let go of small damages, you can avail a decent discount in the form of NCB. So, it’s advisable to pay for minor repairs instead of making a claim and losing that NCB, which by the way, only increases with every passing year.

There are times when drivers wish to cancel a claim, mostly because they don’t want to pay the deductible. So, insurance providers allow you to cancel a claim after you file it, and to do so, you just need to contact a representative.

That is unlikely. It is recommended that you inform the insurer at the earliest. The period of intimation may be sometimes as short as two days. After the specified time period lapses, the insurer reserves the right to cancel any claim application.

There is no limit to the number of claims that one can register during the policy period. However, the policyholder can claim until the consolidated claim amount reaches up to the Insured Declared Value (IDV) of the car. Also, claims have an impact on your premium at the time of renewal.

It is simple to renew your car insurance online. All you have to do is visit the website of the insurer, make a self-survey of your car, and upload the required documents. Once the documents are approved, a payment link would be sent. After the payment is done, your policy will be renewed.

If you want to make any changes to your existing policy, it can be done through an endorsement. The modifications/changes are not made in the original policy but in the Endorsement certificate. These might include change in ownership, coverage, vehicle, etc. Endorsements are of 2 types - premium-bearing endorsement and non-premium bearing endorsement

In premium-bearing endorsement, you have to pay an additional premium. For example, transfer of ownership, addition of LPG/ CNG kit, change of RTO location, etc. On the other hand, if you opt for non-premium bearing endorsement, no additional premium is charged. For example, change in contact details, correction in engine/ chassis number, addition of hypothecation, etc.

If you have witnessed a significant rise in the insurance premium during renewal, it might be because of loading. Simply put, it is the amount that is added to a policy to cover for losses which were higher than what the insurer was anticipating. This comes into the picture if the policyholder is prone to a certain type of risk or opts for claims quite often. Loading protects insurance companies against high-risk individuals.

Yes. The reward for not making a claim during the policy period can be easily transferred from one insurer to another, if the policyholder decides to buy insurance from another insurance company. Similarly, if the car owner changes his vehicle, NCB can be transferred to the new car.

This add-on cover retains your No Claim Bonus even after you have raised a claim for damage caused to your parked vehicle due to external impact or any calamity such as flood, fire etc. This cover not only protects your NCB earned so far, but also takes it to the next NCB slab. It can be claimed for a maximum of 3 times during the policy period.

Nil Depreciation, also known as Zero Depreciation Cover, gives complete coverage without any depreciation. There is no decrease in the value of the asset with the passage of time, it is an add-on cover that can be opted for while buying car insurance online.

No, it will not be covered, because the information on your insurance policy must match the details of the car when making a claim. When you switch to LPG or CNG, the fuel type of your car changes, and hence, your claim request can get rejected. Therefore, you must inform the insurer about this change at the earliest.

In this case, you can opt for a top-up plan to get coverage for the new accessories.

As the car ages, its value depreciates. Zero Depreciation Cover is an add-on cover that provides complete coverage to your car without considering the depreciation value. In the event of any damage, the entire claim amount will be paid by the insurer. Without this add-on, the insurer pays the compensation after deducting the depreciation amount which has to be borne by you. You need to pay an additional premium to purchase this add-on.

The Insured Declared Value (IDV) is the maximum amount of sum assured fixed by the insurance company, according to the present market value of the vehicle. Sometimes, the overall repair cost exceeds 75% of the vehicle’s IDV,and then, the insured car is treated as a Constructive Total Loss claim.

Roadside assistance is an add-on cover that comes to your rescue when you are stranded on the road in case of a mechanical breakdown. This has to be purchased by paying additional premium. One can avail 24*7 road side assistance for breakdown, tyre replacement, towing, fuel replacement etc. by contacting the customer care.

Unless you have a Zero Depreciation cover, the insurer pays for the repair or replacement of car parts at a depreciated value. The value of the car and its parts becomes lower as the years go by. This ‘deduction for depreciation’ decides how much the policyholder pays from his/her pocket.

Yes. Both the make and model of your vehicle influence the cost of your insurance premium. The premium for a luxury sports car will be more than a hatchback for instance. This is because any damage to a luxury car will need a costlier repair.

Low IDV or Insured Declared Value means you are insuring your vehicle below the market value, and so, your premium will be less. However, at the time of making a claim, the compensation amount will be less and you may have to bear some of the loss. Experts recommend that instead of higher or lower IDV, you go for the right IDV.

The insurance policy has to be transferred from your name to the new owner. Supporting documents like sale deed/form 29/30/NOC of seller/NCB recovery amount are required for this. However, you can transfer the No Claim Bonus accumulated in your policy to your name which can be used for your new vehicle. You also have the option to cancel the existing policy at the time of selling.

Electrical accessories in a car usually include music system, ACs, lights, etc. The non-electrical accessories are the interior fittings in the car, like seat covers and alloy wheels. Their value is calculated according to their initial market value and then the depreciation rate is applied.

Yes. If you add an additional layer of protection, it will lower the risk for the insurer in case of a theft, and so, you will be rewarded with a discount.

Usually, the list is available on the insurer’s website. You can also check with your insurance agent or call the customer care number if you can’t locate it.

Ranging from high-end locks to alarms, anti-theft devices are gadgets that protect your car. You need to get one certified by the Automotive Research Association of India (ARAI) if you wish to avail the anti-theft discount on the car insurance premium.

Bumper to bumper is an add-on cover providing complete coverage, in case of an unfortunate event, to damages done to fibre, metal, and rubber parts of your car. This, however, does not cover engine damage, batteries, tyres and glass. Pay additional premium to purchase this add-on. It is also known as zero depreciation or nil depreciation car insurance.

The different types of car insurance plans are:

• Liability only policy: The Indian Motor Vehicles Act, 1988, makes it is compulsory for car owners to have a valid third-party insurance policy, and non-compliance of the rule can lead to heavy penalties. This policy covers bodily injury (or death) or property damages done to any third party in case of an accident caused by the insured party, on the condition that it wasn’t a deliberate act or done under the influence of any drugs or alcohol.
• Comprehensive plan: Buying this policy is optional, but it is highly recommended by experts. It covers damage done to your own vehicle as well as that done to a third-party. Apart from accidents, it also covers thefts and damages done to the vehicle by natural calamities like flood, lightning, earthquakes, etc. or malicious acts like riots, strikes, and terrorist activity. This plan can be bought for a single year or for long term.
• Standalone Own Damage Car Insurance: This offers exclusive protection to your car that may get damaged due to accidents, calamities, fire or loss due to theft. It doesn’t cover treatment for injuries of the driver, or any damage done to the third-party, unlike a comprehensive plan.

You can submit an endorsement request online for a limited number of changes. These include; Address, Car, RTO, LPG or CNG Kit addition, anti-theft devices, policyholder name, car’s engine number, or even the chassis number.

Loading is a type of cost added to the premium amount in the event of renewing the car insurance policy. However, the applicability of this additional amount is subject to the assessment of the policyholder’s risk continuum. In case, the risk is higher than normal, loading is added.

Expanded as No Claim Bonus, this form of arrangement is awarded to the policy owners if they have never lodged a claim on the policy. Consecutive NCBs can lead to discounting the premium amount by up to 50%.

You can transfer the No Claim Bonus to the new car insurer with a few easy to do formalities. In addition to this, some insurance providers also allow the transfer of NCB to a different insurance provider.

With certain simple steps and easy processes, your Car Insurance online policy documentation is complete. We require no absolute paperwork but, in some instances where VIR is required, satisfactory documents are to be inspected and submitted on demand.

The personal accident policy or premium personal guard provides you with the option to inculcate the policy coverage for the passengers. In addition to the driver, this policy can insure 1 to 3 passengers.

In case, the electrical fire is sourced from an accident; then it will be covered under the comprehensive insurance policy.

Yes, having two insurance policies for a single car is possible and legal. However, one car insurance online provider will not insure one vehicle twice, so, you need to buy the following policy from a different provider. Having two insurance policies is not recommended.

Third-party insurance benefits the other affected party, but a comprehensive insurance policy will help the primary policyholder (you) recover your losses in case of an accident. A comprehensive car insurance policy ensures financial cover in case of fire, theft, accidents, earthquake, etc.

No, it is not possible to pay the insurance premium in instalments. If you are purchasing a car insurance policy, it is mandatory to deposit the entire premium amount in one go. No insurance provider will accept the premium in instalments.

The four wheeler insurance policy can be cancelled after the customer submits a cancellation request. However, it is obligatory to insure your vehicle with another provider before initiating the cancellation process. It is a seven days process, and if there is a premium overdue on the insurer’s side, it will be paid back.

According to The Motor Vehicles Act, 1988, owners of uninsured vehicles can be charged with imprisonment and/or penalties. With the lapsing of the car insurance policy, all the accrued benefits are also eliminated.

Car Insurance is regulated by the Motor Vehicles Act, 1988 which is a nationwide legislation. Seeing to this, any car insurance policy that you purchase will be applicable in pan India provided that you renew it before the lapse date.

A comprehensive car insurance policy covers damages caused due to a variety of risks. This includes cover against collisions, theft, fire, lightning, personal accidents, calamities like earthquakes & landslides, inundation, and even third-party liabilities.

A third party only cover is another type of insurance policy that offers you the minimum level of insurance cover. To obtain the TPO, you can either get in touch with one of our agents or follow the iterative process online.

Yes, you can easily buy a standalone own-damage car insurance policy for protecting your vehicle. However, it is necessary for you to have a long term third party insurance policy with the current or any other insurer.

There are some conditions in the vehicle insurance policy for which the insured person does not get any claim in case of a mishap. Those conditions are termed as inclusions. If your reason for claiming is in the exclusions section, you will not get the compensation.

If you want to customise your vehicle insurance policy for some extra benefits and protection, opt for the add-on covers. Add-on Covers by most insurers includes 24*7 Road Side Assistance, Engine and Tyre Protector, Lock and Key Replacement Cover, Consumables Cover among other add-ons .

Even though our policy provides a blanket cover for the major incidents that a driver can face, apart from this, there are a few instances exclusive to a specific area or region, type of car, and so on. Add-on covers are always attached to the pre-existing insurance on your car. Thus, you cannot purchase add-ons without first buying a policy cover from your incumbent insurance partner.

Add-on covers provide an extra layer of security and safeguards you from additional expenditure due to unprecedented situations. Seeing to their importance, there are no restrictions to buy add-ons over your car insurance policy.

To insure the person driving the car, you need to buy car insurance policy with the Premium Personal Guard policy in addition to the comprehensive policy for your car. This provides a 360° coverage of costs for the losses to the car and the driver.

Yes, the geographical location has an impact on the four wheeler insurance premium. If you live in a densely populated area of the country, the chances of accidents will be more. Hence, the amount of your insurance premium will be proportional to such specific conditions.

When you buy car insurance policy, the final quote can vary because of various factors. Some of the prominent ones are:

• Car’s Model and Make and Car’s Age (Year of Manufacture)
• IDV (Insured Declared Value)
• Add-on covers opted for by the insured
• Type of four wheeler insurance cover – Comprehensive or Third Party
• No-claim bonus % accumulated over the claim free years
• Geographical location
• Cubic Capacity – engine capacity

Yes, the premium of your car insurance will be less if you choose a lower IDV. However, it is not recommended. Low IDV will lead to less premium for your car, but in case of theft or total loss, you will not get the correct market value for your car.

With the NCB feature, the Car Insurance premium may reduce up to a specific percentage year after year, if no claim is raised. It is certainly proven to be a beneficial factor in the long term Insurance policy with the same company.

The Insurance Regulatory and Development Authority of India has sanctioned 15% of discounted premium rates if you buy car insurance for electric cars in comparison to general private cars. It is under the New Third Party cover premium rates.

The timeline for a claim to settle is dependent on the extent and type of the online car insurance policy. For a simple damage claim, the process is rather simple and can be settled on the same day. For more convoluted issues, the proceedings can be delayed based on the requirements of the documents.

With the tie-ups with the selected garages, most Insurance companies provide cashless car insurance policies. In this type of policy, the insurance company directly pays the garage for the repairs. But the parts which are not covered under the policy are payable by you.

You can, and we will reimburse you for your expenses at the garages of your choices. However, if the customers need our assistance to explore the garages in our network, our team can also provide the pick service.

The Reimbursement claim underlines the process whereby a customer claims the insurance amount after paying himself for the repairs done on the vehicle. The claim amount is reimbursed based on invoices submitted by the customer with the car insurance company.

First and foremost inform the police and document the situation, if you can. In case of an accident, do not move the vehicle and inform the agent or car insurance company to inspect. Documents requested should be submitted depending on the claim.

Very few 4 wheeler insurance providers offer special discounts for critical illness insurance to differently able insured. Various schemes are introduced by the government, which covers basic medical treatments.

Contact on toll-free customer care number of your insurance provider, or your insurance intermediary directly on the number available with you. All the required steps will be detailed and guided.

Claims should be registered on the same day as the damage occurs to the insured vehicle. An immediate update with the 4 wheeler Insurance Company will be highly appreciated. Complete the claim application through an online process and let us help you further on.

If you plan to claim the car insurance, do not move your vehicle from the accidental spot until after you have informed the insurance company. Take the pictures as a valid proof for the claim. If you move the vehicle, it may complicate the procedure.

Regular rules of the policy apply even when someone else was driving your vehicle. Act quickly and inform your agent after reporting the accident to the police, so that the car insurance online claim can be processed. Documenting the accident helps in the procedure.

Documents such as claim form, Policy number, Details of 4 wheeler Insurance, Policy cover/ note copy of insurance, the original Driving license of the person driving at the time, FIR in case of an accident, RTO intimation theft application, repair bills and payment receipts for repairs and any other documents demanded for the process.

Right after the accident. Filing the first information report with the police is the first step towards the process. It is mandatory either in case of accident or theft of the vehicle. In any situation, keep your car insurance online policy on you or in a vehicle and inform your online four wheeler insurance company.

For not claiming the minimal damage, the additional bonus or discount is accumulated with the NCB, next year. It provides you with minimal cost of the premium on your car insurance policy and lesser repair amounts too. It benefits you in the long term.

The claim will be verified even after the policy expires because the incident which occurred is within the timeline of the car insurance policy. You are eligible for the claiming process, as the claim will be valid with the Insurance Company.