Motor insurance is required for all vehicles operating on Indian roadways, and every owner/driver should have an active motor insurance policy. An insurance policy's principal function is to offer a financial safety net for a third party's unintentional damage, death, or injury.
Aside from third-party liability, own-damage coverage protects the insured vehicle's physical injuries or losses in the event of a natural or manufactured calamity. This plan provides a stress-free and secure drive on the country's roadways. To have a cover for everything, buying a comprehensive motor insurance policy is advisable.
Importance of Motor Insurance
A third-party liability policy is required for everyone who wants to drive on Indian roads. A comprehensive plan might also be considered if one needs insurance against damages to the insured vehicle. Accidents have become more common as traffic has increased, making it critical for everyone to have the best motor insurance policy that protects them from financial damages. The following are some of the benefits of purchasing an automobile insurance policy:
Compulsory by Law
Third-party insurance is required in India to drive or ride a car lawfully. If you do not have motor insurance, you may incur penalties under the Motor Vehicles Act of 1988.
Someone who gets motor insurance will have peace of mind when driving their vehicle on the country's roadways. It reduces the financial burden significantly.
Own Vehicle Loss or Damage
An own damage cover protects the covered vehicle from damage caused by natural or man-made disasters.
Compensates your Family
A traffic collision's most tragic result is a car owner's demise. It becomes challenging for a family to handle their daily necessities after the death of the family's breadwinner. In this case, the motor insurance organisation will reimburse the family following the incident.
Keep you Legally Safe
The Motor Vehicles Act 1988 mandates that third-party liability insurance be carried in India. If the insured hurts a third party while driving, this policy protects you from legal issues.
Benefits of Buying Motor Insurance Online
Most motor insurance companies in India have taken their business online with advanced technology. The benefits of buying motor insurance online have perks, so let us look at them.
It takes less time to buy motor insurance online since you can fill out the documents at your convenience anytime. Also, you can buy and renew the coverage from any location at any time.
Since you can compare motor insurance policies online, you can select the best motor insurance policy with the lowest premium possible.
Renewing motor insurance is also an important task. You can renew the motor insurance policy quickly, without any hiatus when you go online.
Online infrastructure enables digital-first insurers to settle claims, issue insurance policies efficiently, and serve policyholders.
With significant technological advancements, you can now have a satisfying insurance experience while buying, renewing, comparing, etc. Online insurance is the next big thing in the insurance industry.
Types of Motor Insurance Policy
Motor Insurance can be broadly divided into three categories, and as per your needs, You may choose the motor insurance online plan that best matches your needs.
Car insurance is an obligatory policy to buy when purchasing a car. Accidents occur while riding a car, so having insurance eases the pressure of being in an unfortunate situation. The car insurance coverage protects against losses, harm, and loss to a third party. To obtain the insurance that meets your needs, compare several car insurance policies.
Two Wheeler Insurance
If the covered vehicle is damaged or stolen, two-wheeler insurance shields the policyholder from any losses incurred by motorcycles and scooters. The insurance policy also covers a third party's losses, injuries, or death brought on by accident. It is wise to evaluate many insurance policies before selecting one, similar to car insurance.
Commercial Vehicle Insurance
Commercial vehicle insurance is a specific type of motor insurance since it covers losses and damages to or caused by a commercial vehicle in the event of an accident. All businesses must have commercial vehicle insurance, including those using tractors, pick-up trucks, school buses, auto-rickshaws, and other vehicles. Furthermore, for commercial vehicles to operate on the nation's roadways, the Motor Vehicles Act of 1988 mandates that they have liability-only insurance.
Types of Coverage offered by Motor Insurance:
You can determine the motor insurance policy you want according to your needs. Once you do that, motor insurance offers two types of coverages.
Third-Party Insurance Plan:
An individual is shielded from financial damages by a third-party car insurance policy if their covered vehicle is involved in an accident resulting in property damage, bodily harm, or death to a third party. The third-party consists of both a person and a vehicle. If someone wishes to ride a vehicle on Indian roads, they must have this motor insurance coverage, as it is mandated to have a motor insurance policy in India.
Comprehensive Insurance Plan:
You will be entirely covered in the case of any loss or damage when talking about comprehensive motor insurance. Comparing third-party vehicle insurance versus comprehensive car insurance, it is evident that comprehensive is the superior choice.
Reasons to Buy Motor Insurance
Buying Motor Insurance in India is mandated by the Government of India, but that is not the only reason you should buy motor insurance. Let’s glance at some of the reasons to buy vehicle insurance.
Mandatory to Carry
A third-party insurance policy is legally required to cover a vehicle. Serious repercussions, including fines or jail, can result from breaking the law.
Protection from Natural Disasters
A natural calamity is unprecedented. Motor insurance works as a safety net, which is crucial for anyone.
It can get expensive if you pay for the complete repair out of your pocket. A comprehensive cover improves coverage and provides monetary support to pay for the damaged vehicle's repairs.
Free from Stress
Riding on the road is not an easy task. If you end up in a situation where you meet with an accident can lead to a lot of stress. A motor insurance policy ensures you are safe from the unfortunate situation's legal and financial burdens.
Covers Third-party Liability
A motor insurance policy covers the third-party liability against the vehicle’s owner.
Inclusions Under Motor Vehicle insurance?
The kind of motor insurance chosen will determine the scope of a motor insurance policy's coverage. The components of third-party and comprehensive vehicle insurance are listed below.
A third-party liability policy's inclusions
Regarding the obligation for having motor insurance, you will be seen as a law-abiding person, as it was made mandatory by the Government of India.
It includes coverage for third-party injuries or property damage.
What's Included in a Comprehensive Motor Insurance Policy?
The motor insurance policy will cover accidental, fire-related, natural disaster-related, or man-made disaster-related damage to the insured vehicle.
Cover for Theft
If your vehicle gets stolen, the motor insurance company will cover the stolen vehicle.
coverage for third-party bodily harm or property damage.
Exclusions Under Motor vehicle insurance?
Exclusions refer to circumstances where the insurer is not required to pay the claim. Let us learn more about it below.
Loss or damage brought on by unethical driving (due to alcohol or drugs) is not covered.
Outside the defined geographic area, the vehicle is not insured for loss or damage.
War and nuclear Risks
Nuclear dangers, radiation, insurrection, and war-related loss or destruction are not covered.
Wear and tear
The vehicle's usage-related wear and tear are not covered.
Loss or damage brought on by the depreciation is not covered.
Consumable wear and tear, such as tubes and tyres, are not covered.
Invalid Driving License
Loss or damage caused by a person driving without a valid driving license is not covered.
Expired Motor Insurance Policy
The motor insurance should be timely renewed. The damage won't be covered if it occurs after the expiration date.
Add-ons Under Motor Insurance
Additional motor insurance covers can be bought with the insurance policy in order to extend the coverage benefits. You need to pay an extra amount of premium to avail the benefits. We have a list of the most popular motor insurance add-ons listed below.
With this addition, the motor insurance company will settle the claim without considering depreciation costs. Consequently, you will receive a higher after-claim payout than you would have if you didn't have this coverage.
Assistance on the Road
If you are stuck in a situation on the road and need help, with this add-on cover, you will get roadside assistance from the motor insurance company, including towing services.
With this add-on cover, the heart of your vehicle, the engine, will be covered. It is one of the most important add-ons under motor vehicle insurance.
In India, possessing PA Cover is required in addition to a third-party car insurance policy. This additional insurance provides financial protection in case of a fatality or permanent disability while operating a car.
For not filing a claim during the last year’s motor insurance policy term, the insurance companies offer a discount for the following year.
Key Replacement Cover
If your car keys get stolen, damaged, or lost, this add-on cover will help you cover the cost of the key. The key’s cost can go up to INR 10,000.
PA Cover for Riders
You may protect your loved ones in the event of a permanent disability or death while riding a vehicle when you purchase this add-on cover in addition to your Comprehensive car insurance policy.
How To Select the right Motor Insurance Policy Online?
Given the abundance of alternatives accessible today, selecting motor insurance that meets all requirements is critical. A good policy should be reasonable and give protection in the event of an emergency. Here are some factors to consider while buying a motor insurance policy online:
Consider features like 24-hour customer care, pick-up and drop-off options, a vast network of garages, and expedited claim processing when purchasing a motor insurance policy. These are the services that, when the time comes, may make all the difference.
It's crucial to understand the sort of plan you're selecting before obtaining motor insurance. A third-party insurance policy is mandatory but will not cover any monetary damages incurred by the covered vehicle. Before buying insurance, it is crucial to thoroughly read all the terms and conditions.
Add-on covers broaden the coverage's application and enhance the motor insurance policy's depth. Getting the proper add-on coverage is crucial to maximising the benefits of the insurance.
Claim Settlement Ratio
Take a look at the claim settlement percentages of several motor insurance companies before purchasing coverage. It is one of the most crucial considerations when purchasing insurance coverage.
From the appropriate premium to the services, motor insurance must readily cover everything at the best price. Doing this may save money without sacrificing the quality of the services they obtain.
Motor Insurance Premium Calculator
You may verify the anticipated premium cost for your motor insurance policy using a motor insurance premium calculator. Simply enter the vehicle's age, model, variation, RTO location, and year of purchase to get the cost of the insurance premium.
Online Motor Insurance Calculator is a free online tool you can use from the comfort of your home to learn the prices for different motor insurance policies. Additionally, you may evaluate various insurance packages and see which motor insurance providers offer discounts on their policies.
The motor insurance calculator will help you compare different policies online with great insight. With a premium calculator, you may quickly purchase the best motor insurance policy based on your needs.
You may save time using the motor insurance premium calculator as you don't need to provide any paper copies of the supporting documentation. You only need to provide your information and needs to receive the premium quotations. You will be shown the insurance plans that meet your set parameters in just a few minutes.
The motor insurance calculator will help you direct the add-ons available and the premium you will have to pay to avail of the cover.
Factors Affecting the Motor Insurance Premium
The factors listed below might influence the cost of motor insurance.
Depreciation and Insured Declared Value are the two fundamental ideas about the age of the vehicle. Depreciation is the vehicle's value decline by normal wear and tear over time. And IDV may be viewed as the approximate current market value of the vehicle.
Model Number and Variant
Your car's type, make, model, engine size, and other factors will affect the cost of your motor insurance premium.
The premium you pay for comprehensive motor insurance will be more than that of third-party motor insurance. So, as per the need, your premium will be decided.
Add-on riders can extend the motor insurance policy's basic coverage by paying an additional premium. Depending on the choice of your add-on, the premium will be decided.
If you didn't claim the last year’s policy term, motor insurance providers would reduce your rate (at the time of renewal). This implies you will pay a lesser premium when your motor insurance coverage is renewed.
How to Buy Motor Insurance Policy Online?
The official website of the motor insurance companies and D2C Insurance Broking Private Limited ("RenewBuy.com") is where you may purchase a motor insurance policy. The steps involved in getting a new motor insurance coverage are as follows:
Buy from the official website of the motor insurance company
- Go to the official website of the company and select the "Motor Insurance" page
- Select the motor insurance plan you like
- Fill in all the credentials
- Hit the Buy button
- Proceed with payment
- The insurance provider will email you a copy of the policy documents.
Buy from “RenewBuy.com”
- Visit the official website of RenewBuy
- Click on the “Motor Insurance” tab
- Then, select the vehicle
- Fill out the form
- Compare motor insurance plans and select the best motor insurance plan
- Tap on “Buy Now”
- A pop-up will show you the plan details and the additional riders' information.
- Proceed with the payment
- Post making the payment, you will receive the motor insurance documents via email.
Benefits of Buying Motor Insurance Policy with D2C Insurance Broking Private Limited (“RenewBuy”)
You may now purchase new motor insurance coverage in a matter of minutes. Apart from buying, you can submit a claim online. The following are the main advantages of purchasing motor insurance online with RenewBuy:
Online motor insurance policy purchases are simple and time-saving because they may be completed from home. The process is stress-free because the insurance is issued in minutes.
No documentation is necessary because the entire procedure of buying motor insurance is done online, and the process is hassle-free and straightforward.
The RenewBuy website makes it simple for users to compare various motor insurance plans online They may use this information to purchase the best coverage for their needs.
There is no requirement to go to the primary office or any other location. The motor insurance may be obtained online, making the entire procedure less expensive.
After purchasing the motor insurance online, a person will receive a soft copy via the registered email address shortly.
Process for Filing the Claim Under Motor Insurance
Since you have motor insurance, you don't have to worry about financial losses, but how can you file a motor insurance claim? Look at the process below:
Submitting a Claim for Damage to the Owned Car/Two Wheeler/Commercial Vehicle
The insured must provide the motor insurance company with a thorough estimate of the loss to start the procedure. They thoroughly examine the damaged vehicle and send their survey report to the insurance provider, who will review and investigate it in line with the suggestions.
Other Documents Needed for Processing Claims Besides Claim Forms Include
- Valid Driving License
- Fitness Certificate
- Registration Certificate
- Final Bill
- Report from the Police
Third-party Claims: The issue is transferred upon receipt from the insured or a third party. Certain documents are required like:
- Medical Certificate
- Driving License
- Report from the Police
- Death Certificate (If required)
Renewal Process of Motor Insurance Policy
Motor insurance renewals used to be a lengthy process. Today, you can renew your motor insurance online without any hiatus. Depending on an insurance company's coverage and discounts, the best possible choice for the situation might be.
- Visit the motor insurance renewal section.
- Enter the details like age, DOB, etc.
- Choose the best motor insurance for you by comparing motor insurance plans
- Add riders according to the need
- Calculate the premium using the insurance premium calculator
- Proceed with the payment
This way, you can renew your motor insurance, which is convenient and easy.