India Car Insurance are of two types, viz., Motor Policy A (Act policy) and Motor Policy B (Comprehensive insurance policy). Car insurance is an obligation without fulfilling which, it is illegal to drive a car on Indian roads.
India Car Insurance procedures have been made convenient with the mushrooming of new insurance companies in India. Car buyers in India need to first meet the legal requirements under Motor Policy A and thereafter opt for Motor Policy B. A brief elucidation about the 2 types of car insurances is given below:
- Motor Policy A: This is also known as Act Only Risk, Third Party Risk, or simply Act Policy. It insures against all the 'Acts Risks' in using a car as covered under Section 146 of Motor Vehicles Act, 1988. The party (or parties) other than the car owner and the insurance company is known as the third party. In the event of death, physical injury, or property damage of third party, compensation will be made. For property damage, compensation will be up to Rs. 6,000. Additional premium needs to be paid for risks of fire and theft.
- Motor Policy B: The policy is valid for 1 year and is activated as soon as the premium is paid. The scope of the policy covers risks associated with natural calamities and man-made protests, transit damages while on road, and third party risks among others. This policy also covers insurance on car accessories if additional premium is paid for the same.
One must renew Policy B during its validity period, failing which it would be considered invalid. It is illegal to drive with an invalid policy as well. In policy transfer matters, an existing insurance policy can be transferred to one's name in the event of purchase of a used car. One needs to intimate the same within 14 days from purchase to the insurance company.
For car accident claims, it is important to submit these documents - FIR (Third Party Injury or Damage), claim form and original estimate of workshop repairs obtained, insurance policy proof, motor driving license of driver, and registration book.
As far as car insurance claim procedures are concerned, the insurance companies are making efforts to speed up the process. Names of some companies dealing in car insurance are Bajaj Allianz, HSBC India, New India Assurance Co., ICICI Lombard, and United India Assurance Co.
India Car Insurance is gradually, becoming a quick, convenient, and hassle-free process for car buyers, especially since car manufacturers have been tying-up with top car insurance companies in India to offer attractive schemes to buyers.
Convergys India | ICICI Lombard | Cholamandalam General Insurance | Insurance Companies
