Car Insurance FAQs
What are the necessary documents required for a car Insurance claim?
- Though they are already mentioned in your car insurance policy, here is a handy list for your convenience:
- A copy of the insurance policy
- Driving licence: if the claim had occurred while plying on the road
- Claim form appropriately filled (a copy of the same can be kept with the policyholder for future reference)
- Registration Certificate along with the original for verification
- Pollution Certificate Copy (On lines with recent central govt. amendment in law
- Fitness Certificate of the vehicle
- Vehicle permit: if the vehicle is a commercial vehicle
- Repair estimate - it is given by the insurance company
- Spot photos & intimation to police authorities if the vehicle has sustained multiple impacts or involved bodily injury
*Other than the above mentioned, from case to case basis, the requirement may vary
How can one claim if the car is stolen under motor insurance?
- Intimate theft claims to the insurance company without any delay
- Intimate policy authorities and initiate steps to Lodge an FIR (at the jurisdiction level)
- The insurer appoints an investigator to verify the facts and coordinate with the customer
- On insurer advice, RTO is informed for cancellation of the vehicle registration; the acknowledgement for the same is provided by the Transport authority
- Keep the following documents handy while making a claim-
- Copy of the car insurance policy document
- Duly signed claim form
- Registration Certificate
- Copy of FIR
- Intimation letter addressed to RTO
- Keys (two sets) of the vehicle
- At a later stage, the following is to be arranged
- NTC - non-traceable certificate duly attested by court authorities
- RC Cancellation acknowledgement from RTO
- Submit the photocopy of the FIR and the documents mentioned above, along with the car keys and a non-traceable certificate from the police, to your insurance company
What are the factors to consider while buying your car insurance policy?
Following are the factors that help in deciding the best suitable policy that caters for your requirements:
- The IDV (Insured Declared Value) of the car
- No Claim Bonus
- Premium Amount
- Brand Value
What if the car insurance policy expires?
If your four wheeler insurance expires, your car will be at risk and no financial assistance will be provided by the insurer. To renew, you must contact the agent as soon as you realise your four wheeler insurance coverage has expired. He will be well-versed in the procedure.
What is third-party car insurance?
Third party car insurance protects you against any legal duty to a third party in the event of an accident or damage. If you expect speedy resolutions, it's crucial to inform the insurance company about the accident as soon as possible. So, you need to buy a suitable car insurance policy. You can check various policies and compare car insurance online these days.
What are the deductibles? What is the difference between Compulsory deductible and Voluntary Compulsory Deductible (VCD)?
Deductibles are part of the claim amount borne by the policyholder at the claim time. The amount that the insured has to pay from his pocket in case of claim settlement and the rest amount paid by the insurance company.
The compulsory deductible is an amount that is made mandatory by the Insurance Regulatory Development Authority of India (IRDAI). Depending upon the cubic capacity* of the car engine, IRDAI has fixed a certain amount to be borne by the user in case of a claim.
*Note - The compulsory deductible for private cars of 1500cc is 1000 rupees.
Whereas a voluntary deductible is optional for the insured to opt for. It is the minimum amount which a policyholder decides to pay when a claim is lodged. It is inversely proportional to the premium amount. If the car owner is confident enough in their driving skills and wishes to keep less Voluntary Compulsory Deductible (VCD), the premium rate will increase. If they take a higher VCD, the premium amount they need to pay is a little lower. This is an essential feature of motor insurance to ensure that the insured exercises restraint in claim requests.
Can car insurance be cancelled?
A car insurance policy can’t be cancelled unless there is a genuine case* and is intimated within one month from the date of purchase of the policy.
*Genuine cases can be if there is an alternate policy done for the exact vehicle or in case you want to sell the car. However, there are no cancellation charges applicable (depending upon the T&C mentioned in the policy)
Is the unnamed passenger cover a part of a comprehensive car insurance policy?
Yes, one can take an add-on called Personal accident cover from their car insurance company in a comprehensive car insurance policy for unnamed passengers while paying an extra small payment.
This cover can extend to the co-passengers in the car, family, friends and colleagues.
Why is Third-Party insurance cover not enough?
Third party car insurance only covers other vehicles or property on the road and does not cover accidents or damage to own vehicle. But comprehensive car insurance covers the vehicle against any damage caused to it depending on the add-ons you have availed while purchasing your 4 wheeler insurance.
Is it mandatory to inform RTO about any changes I make in my car under car insurance?
Yes, it is mandatory to inform RTO and the company that you have trusted for your 4 wheeler insurance about any installation done in the car. May it be CNG or any changes if done in the documentation.
Similarly, in case of theft, the owner has to inform RTO about the incident in order to avoid the transfer of registration on other names, resulting in any fraudulent activity.
Will I get the total value of my recently purchased car if I meet with an accident under motor insurance?
Standard motor insurance says that it will provide you with the total loss benefit in case of an accident. However, people do not understand the meaning of some insurance terminologies. In the case of car insurance, if the car repair cost exceeds 75 per cent of the Insured Declared Value (IDV), the damage will be counted under the totalled car. IDV is generally for cars up to 5 years old and decided by applying a pre depreciated value.
Some insurance providers give “Return to Invoice” (RTI) as an add-on cover under a comprehensive insurance policy. If you have opted for this add-on cover at the time of buying the policy, you will be reimbursed the amount equivalent to the invoice amount of the car. Return To Invoice (RTI) Add-On makes your policy slightly expensive.
Could my Insurance company reject my car insurance claim?
There are some factors on which an insurance company can reject your claim-
- If the car is repaired before making a claim
- If any modifications were done to the car and not intimated to the insurance Company and RTO at the same time
- If the car owner has failed to complete the transfer formalities to other owners/entities.
- If your car insurance company is mis leaded, not informed about the purpose of using a car
What is depreciation in car insurance?
Depreciation is a reduction value of an asset over time. The reduction in the car's value depends on the usage of your car. The unavoidable wear and tear cost of the car's maintenance is depreciation. Your car loses value constantly due to the depreciation involved. The price difference after depreciation and new parts will be bear by the car owner.
The car insurance company only cover a portion of expenses incurred to replace the damaged portion of the car and the rest of the amount is decided based on the cost involved in depreciation.
How to get the best insurance policy for my car from RenewBuy?
RenewBuy has a tie-up with multiple car insurance companies. We give multiple car insurance quotes available from various insurance companies to choose the best policy for your car.
Are natural calamities covered under car insurance?
Any damage caused to a vehicle due to natural calamity like- flood, storm, cyclone, earthquake, hurricane etc., is covered under a comprehensive insurance policy.
When does a third party car insurance expire?
You may opt for a three to five-year plan as per your requirement; however, a third party car insurance is for a tenure of 1 year.
Is buying a comprehensive insurance for your car better?
Having a complete package is always better than having a part of it. Comprehensive insurance not only covers the damages caused it also allows you to drive legally on the road.
Is the third party car insurance transferable if I sell it to the new owner?
Yes, you can transfer your third party car insurance to the new owner. After transferring, the new buyer will have to submit an application within 14 days and pay the endorsement fee.
How do the motor insurance companies determine the car's value (IDV)?
Motor insurance companies consider various factors while determining the value of the car. For example, age of the car, model, geographical location, rate of depreciation etc. The formula
To calculate IDV:
IDV = Manufacturer’s registered price – depreciation
What is the procedure for car insurance claims in India?
- Notify the car insurance company
- Lodge an FIR at the closest police station
- Capture photos and videos as a valid proof
- Submit the documents to the motor insurance company
- Follow up with the insurer regarding the surveyor
- Get your vehicle repaired
Follow these steps, and you will get a claim from your car insurance company.
Is there a way to reduce my car insurance premium?
Yes, there are a few ways by which you can reduce your car insurance premium. They are:
- Choose an affordable plan by researching the market
- You can pay your premium annually rather than monthly
- Restrict the unnecessary add-ons
- Raise your deductibles
By keeping these factors in mind, you can save a good amount of money. Also, you can look for motor insurance online. Since the competition is high, you will get some cheaper options.
Can my car insurance company deny renewing the car insurance policy?
If the insurer feels that you have practised a fraudulent activity or your documents do not match, the insurance company can deny the renewal. In that case, the insurer will notify you before the date of expiry.
Do you get a 24*7 roadside assistance in the car insurance policy?
Yes, a car insurance company offer 24*7 roadside assistance.
What does ARAI stand for in a motor insurance policy?
An ARAI anti-theft device can help you get a discount of 2.5% on the Own Damage premium up to a maximum of INR 500. Automotive Research Institute of India is an R&D organisation set up by the government of India. It is a good feature added to your motor insurance policy.
Are there any cheap car insurance policies in India?
You get multiple options to buy cheap car insurance when you go online. Though, it is not advisable as you will get less coverage and get exposed to many risks.
Is having the Own Damage Insurance a good idea?
In this type of motor insurance, you get coverage against unforeseen own damages. It includes natural calamities, road accidents, fire, etc. It is not mandatory insurance, but it does offer better protection.
Is it possible to renew my motor insurance policy online?
You can renew your motor insurance policy online 60 days before expiration. The insurer will send a surveyor to inspect the vehicle. If everything is fine, your car insurance policy will be renewed.
What is Engine Protect Plus in car insurance?
It is an add-on that enables the service wherein your car insurance company pays for repairing and replacing the engine damaged by water infiltration or lubricating oil leaks.
Is there a way to pay my car insurance premium in instalments?
No car insurance company allows you to pay your premium in instalments as the government of India does not authorise it under section 64VB of the Insurance act 1938.
What are the benefits of the car insurance premium calculator?
If you want a suitable plan, it is crucial to check your car insurance premium. The benefits are as follows:
How many motor insurance companies offer third party car insurance?
There are over 25 insurance companies that offer that third party car insurance in India. Renewbuy has multiple tie-ups with the motor insurance companies that make it easy to compare so that you choose the right plan.
Can I buy motor insurance online?
Yes, you can buy motor insurance online, and there are many motor insurance plans available online.
What is the procedure to buy motor insurance online?
You can go through our website Renenwbuy.com, and the process is as follows:
- Fill in the make and model of the car
- Fill in the purchase year of the car
- Click on the Instant Quote Button
- Compare plans, select, and pay for your desired policy
This is the simplest way by which you can compare car insurance online and choose a suitable plan for yourself.
Is my car insurance policy only valid in India?
However, the car insurance policy can be extended to neighbouring countries like Bhutan, Nepal, Sri Lanka, Pakistan, Bangladesh by paying an additional premium.
What must information be entered into the car insurance premium calculator?
In order to get an estimate, you must enter details like the model of the car, age, RTO location, RC, etc., on the premium calculator to find the premium amounts given by different car insurance companies.
What changes can I make to my car insurance policy?
You can make only a few changes after buying car insurance, which is as follows:
- Change of name
- Change in vehicle
- Installation of LPG/CNG kit
- Anti-theft device integration
In a car insurance policy, what is the Garage Cash Plan?
In this plan, the insurer will get a fixed daily allowance as per the car insurance policy unless your car is repaired.
What are the advantages of the Garage Cash Plan under motor insurance?
You can make only a few changes after buying car insurance, which is as follows:
- Less Inconvenience
- Comfort in travel
This add-on in your motor insurance policy aims to bring down the inconvenience.
What is the meaning of the No Claim Bonus in car insurance?
If you do not file a single claim throughout the policy tenure, you will get a No Claim Bonus from the car insurance company. It ranges from 20 to 50 per cent.
Is it legal to swtich from third party car insurance to a comprehensive car insurance?
Yes, you can switch but only at the time of your motor insurance renewal.