India Car Insurance

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In India car insurance policies are provided by a number of leading general insurers of the country. Interested proposers can also look up policy aggregator sites and save a maximum of 30 percent on their premiums by comparing the rates of various companies.

Car Insurance in India

In India private car insurance is quickest grower as far as the automobile insurance sector is concerned. It is obligatory for all new car owners to get them insured and the third party insurance policies are thought to be absolutely basic in this regard. The premium normally depends on the worth and structure of the car, the year when it was made, and the area where the car has been registered.

Types of Car Insurance in India

There are three major types of car insurance available in India – comprehensive policy, third party insurance plus theft, and third party insurance.

Third party plans

The third party policies cover the liabilities faced by a car owner when their cars hit a third person and cause any of the following:
  • Physical injury
  • Property damages
  • Death
  • Personal accident cover for car owners if they were driving the car during the accident

Third party plus theft policies

The third party insurance and theft policies only cover third party liabilities and cases of theft.

Comprehensive insurance policies

The comprehensive policies provide coverage for both third party liabilities as well as the following:
  • Damage to car and its accessories due to fire, theft, riot, and floods etc
  • Towing expenses
  • Loss of car and its accessories owing to floods, riots, theft, and fire etc

Car insurance Renewal in India

As per laws in India, if a car owner forgets to renew the car insurance policy in time it is regarded as an illegal one. In such cases the insurance companies may also not pay claims if the car suffers an accident and no claims benefit will be forfeited as well.

These policies can also be renewed with a different service provider. The newly renewed policy will also include the bonus provided by the previous company.

Car Insurance Coverage in India

In India the third party policies cover both the death and the injury of a third party as well as the damages caused to that particular party. The liabilities for injury and death are not limited.

The comprehensive car insurance policies provide protection against damages suffered by a car owing to natural disasters or man made issues. The insurance companies have no responsibility in case of instances of hit and run. The victim in such a case is paid damages by the Solatium Fund set up by the government.

Car Insurance Exclusions in India

The car owners need to get separate insurance for an extra LPG or CNG kit present in their car. The policies also do not cover the highly expensive car accessories like the additional fittings, and music systems as they are not thought to be integral to a car’s performance. Separate coverage may be needed for these.

The car insurance policies normally cover the following:
  • Damages due to lightning
  • Personal accidents
  • Damages due to floods
These policies do not provide coverage for degradation, and wear and tear that happens over time.

Top Car Insurance Policies in India

The leading car insurance policies available in India may be explained as below:

Bharti AXA General Insurance Car Insurance

The Bharti AXA Car Insurance policy covers accidental theft and damage sustained in fire, flood, and other forms of covered dangers. It also covers damages to others’ properties and cars by protecting the policyholder against the legal issues that may arise owing to accidental damages caused by the policy owner’s car.

This policy also provides coverage in case of legal liabilities arising due to death or bodily injury suffered by an individual owing to an accident of the insured’s car. It provides the following add on covers:
  • Depreciation Cover
  • Ambulance Charges Cover
  • Hospital Cash Cover
  • Medical Expenses Cover
  • Roadside Assistance Cover
  • Invoice Price Cover
  • Personal Accident for Family/ Passenger
Following are some advantages of availing this policy:
  • Competitive quotes
  • Round the clock toll free helpline – 1800 103 2292
  • Cashless facility at more than 2 thousand garages across India
  • Fast and convenient procedure for settling claims

Tata AIG General Insurance Auto Secure

The Auto Secure policy of Tata AIG General Insurance provides the following facilities:
  • Free pick up
  • Guarantee of high class materials and spares
  • Direct settlement facilities at special garages
  • Claims settled in 7 days
  • Maximum accident repair warranty period of 6 months
  • 8 special add on covers for better protection
The policy provides coverage for the following:
  • Loss or damage sustained by the car
  • Green channel settlement
  • Third party legal liabilities
  • Auto restore warranty
  • Zero deduction for salvage value
The following covers are available on the policy:
  • Depreciation reimbursement
  • Repair of glass, fiber, plastic, and rubber parts
  • Return to invoice
  • Key replacement
  • Daily allowance
  • Emergency transport and hotel expenses
  • No claims bonus protection
  • Loss of personal belongings

ICICI Lombard Car Insurance

Following are the major benefits of the Car Insurance plan of ICICI Lombard:
  • It is a digitally signed plan that is provided in the shortest possible time through the company’s web facilities
  • Doorstep surveyor benefits for covering the car with break-in insurance facilities
  • Access to more than 2700 network garages in India for cashless servicing of claims
  • Zero depreciation cover that provides complete coverage for the worth of the replaced parts sans any depreciation and deduction
  • Maximum optional personal accident cover of INR 2 lakh for co-passengers
The policy protects the car against any damage or loss suffered due to the following reasons:
  • Natural calamities
  • Storm
  • Fire
  • Tempest
  • Explosion
  • Inundation
  • Lighting or self ignition
  • Cyclone
  • Earthquake
  • Hailstorm
  • Flood
  • Frost
  • Typhoon
  • Landslide
  • Hurricane
  • Rockslide
The policy does not cover the following:
  • Normal ageing of the car and other wear and tear
  • Electrical and mechanical breakdown
  • Depreciation or any other resultant losses

HDFC ERGO General Insurance Private Car Insurance

The Private Car Insurance policy of HDFC ERGO General Insurance provides the following benefits:
  • Cashless servicing of claims at more than 1600 garages in India that are authorized and part of the insurer’s network
  • Quick processes
  • Wide range of discounts – no claim bonuses, discounts on the basis of profession and age, and discounts for members of automobile associations
  • Quick availability of policies on the web
  • Dedicated customer support team
The policy covers damages or losses sustained by the car due to any of the following reasons:
  • Accident by external means
  • Burglary, theft, or house breaking
  • Fire, self ignition, explosion, lightning
  • Terrorism, strikes, riots, and other hateful acts
  • Transit by road, air, rail, lift, or inland waterways
  • Earthquake, landslide, flood, rockslide, and storm
The policy also provides occupation and age based discounts as well as the following add on plans:
  • Silver Plan – Zero Depreciation Claim
  • Platinum Plan - Zero Depreciation Claim, No Claim Bonus Protection, and Engine & Gear Box
  • Gold Plan – Loss of Use/Down Time Protection, and Depreciation Claim,
  • Emergency Assistance Add on Wordings

ICICI Bank Car Insurance Policy

Following are the chief benefits of the Car Insurance Policy of ICICI Bank:
  • It is a digitally signed plan that is provided quickly on ICICI Bank’s website
  • Transfer of NCB benefits upon shifting policy to ICIC Lombard
  • Access to more than 2700 network garages in India for cash free servicing of claims
  • Discount for members of Automobile Associations
  • Maximum optional personal accident cover of INR 2 lakhs for co passengers
  • Discount for anti theft devices approved by ARAI
  • Surveyor facility on a door to door basis for coverage of car against break-ins
  • Add on covers such as fog lights, seat covers, and music systems
  • No claim bonus (NCB) benefits on renewals
  • Facility of installment payment without additional fees in case of online fees
  • Towing charges in cases of accidental damages
  • Personal accident cover
  • Third party legal liability

Reliance General Insurance Car Insurance

The Car Insurance policy of Reliance General Insurance offers the following features and more:
  • Instant issuance of policy on internet
  • Round the clock service
  • Zero documentation
  • Claims settlement without any hassles
  • Cashless facilities at 2100 network garages
  • Discounts
  • Compensation for towing charges but till a specified limit
  • Dedicated help line to deal with emergency services
  • Survey within 48 operational hours
  • No claim bonuses
Discounts are provided in this policy for the following cases:
  • Voluntary excess
  • Setting up of anti theft devices
  • Membership of certified automobile associations
  • Usage at specific locations

Last Updated on 10/08/2012