Vehicle Insurance : Everything You need to know
What is Vehicle Insurance?
Vehicle insurance is an insurance policy that is related to insurance of vehicles like cars, trucks, motorcycles, and other road vehicles.This insurance covers the policyholder in case of financial losses – resulting from an accident or other damages. It is just like other insurance policies but unlike others it is mandatory if you have a vehicle.
In India Vehicle Insurance is governed by MOTOR VEHICLES ACT and INSURANCE ACT.
You have to pay a yearly premium which is beneficial at the time of claim. Also it is advised not to claim for minor damages as you will lose NO CLAIM BONUS, which is a pretty good amount starting from 20% of the premium in the first year to 50% in the sixth year.
Types of vehicle insurance policies in India
There are two types of vehicle insurance policies in India and they are:
1.Comprehensive
2.Third Party
Comprehensive Policies : Comprehensive policy cover losses due to natural calamities,theft,riot,strike,terrorist activity,personal accidents and also covers third party liabilities.
Third Party Policies: Third party policy only covers accidental damages to third party like permanent injury or death also any damages caused to nearby properties if declared.
Choose the right policy
While choosing a policy for your vehicle, some of the important points that an Individual should look before purchasing any plans are :
- Always compare 2-3 preferred insurers
- You should know what you need for your vehicle
- Always ask about ADD-ONS*
- Do not Provide any wrong information
- Know and understand all terms and conditions
- Check claim ratio
*ADD-ONS : Add-ons or Riders are additional coverage options that gives you extra benefits in policy this you can purchase by paying an additional premium. Things covered in ADD-ONS depends and vary from one insurance company to another.
If you keep all above mentioned points in mind you will definitely be decide which is the best policy for your vehicle.
Documents Required to buy this Policy
There are few documents that you need to provide such as:
- A proof of identity
- A proof of address
- A recent passport size photograph
- Driving license
- Registration certificate of the vehicle
Documents Required to apply for Claim
These are the few documents which you need at the time of claim such as:
- Duly filled and signed claim form
- Tax receipt
- Copy of the insurance policy
- Copy the vehicle’s registration certificate (RC)
- License copy of the driver driving the vehicle at the time of the accident
- Copy of the FIR/Police Panchanama registered
Vehicle Insurance Companies in India
- Bajaj Allianz General Insurance Co. Ltd
- Bharti AXA General Insurance Co. Ltd
- Cholamandalam MS General Insurance Co. Ltd.
- Future Generali India Insurance Co. Ltd.
- HDFC ERGO General Insurance Co.Ltd.
- ICICI Lombard General Insurance Co. Ltd.
- IFFCO TOKIO General Insurance Co. Ltd.
- Kotak Mahindra General Insurance Co. Ltd.
- Liberty General Insurance Ltd.
- Magma HDI General Insurance Co. Ltd.
- National Insurance Co. Ltd.
- Reliance General Insurance Co.Ltd
- Royal Sundaram General Insurance Co. Ltd.
- SBI General Insurance Co. Ltd.
- Shriram General Insurance Co. Ltd.
- Tata AIG General Insurance Co. Ltd.
- The New India Assurance Co. Ltd
- The Oriental Insurance Co. Ltd.
- United India Insurance Co. Ltd.
- Universal Sompo General Insurance Co. Ltd.
New vehicle insurance rule announced
- Vehicle insurance providers can no longer sell long-term own-damage cover with new vehicles
- The customers have to purchase one-year OD cover and renew it after every year
- Third-party insurance policy still needs to be purchased for 3 or 5 years
Vehicle insurance insures a policyholder against financial liabilities which may arise out of an uncertain or unfortunate event . so now when you know every details about vehicle insurance act smartly according to the type of vehicle you have like 2-wheeler , 3-wheeler or 4- wheeler and choose the best policy for the worry free future.