Car is one of the most important and beloved item of possession for any individual. It is the second most important need of an individual after home. As economic status of individuals and our nation has been rising, so has the number of cars and vehicles on road. Car insurance today is the need of the hour, being the most effective way of protecting both your vehicle and the financial liability one would incur in event of car accident.
Cover risks of theft of car, burglary, acts of terrorism, riot or damage in transit by air, road, rail and waterways.
Cover individual’s life in event of accident by subscribing to this Add-On. Although car insurance policy would take care of vehicle post-accident but individual is not covered under it. An individual can claim upto 100% of sum assured in event of permanent or total disability and in case of death of the individual, nominee would receive 100% of sum assured.
Cover risks against legal liability caused due to damage to third party property only and / or resulting in temporary or permanent disability to the third party.
Cover risks against loss or damage caused by both third party and self-induced.
Following factors needs to be considered before shortlisting on a particular car insurance company
Check for number of cashless v/s. reimbursement oriented garages in close vicinity of your residence / workplace.
A key indicator towards efficacy and diligence of an insurance company is number of successful claims settled in a defined period of time. Alternatively, you could also check for claim settlement ratio as per publicly available information.
The car insurance company should have seamless digital presence and payment options and offer online payment options. Digitally purchased policies mostly result in copy of insurance policy being made available immediately upon successful realization of insurance premium, thus making insurance policy purchase a convenient pleasure.
One of most crucial aspects of choosing car insurance company is to do research on the reputation and monetary standing of car insurance company. You can go through reviews available on internet, newspapers and magazines. You can also collect information from your friends and relatives.
The premium for car insurance policy is calculated based on following factors
The car insurance provider will consider the Insured Declared Value (IDV) of the make and model of your car. The IDV changes annually after adjusting the depreciation value of the car.
A No Claim Bonus (NCB) is awarded for each continuous year you hold car insurance in your own name without making a claim. You can transfer NCB to an alternative car but can’t use the same NCB on more than one vehicle or on another type of vehicle, such as van or motorbike. It’s possible to build up multiple NCBs on vehicle insured under different policies. Your most recent renewal notice will indicate how many NCB years you have earned.
If the car contains additional accessories, then premium for those accessories will be calculated separately.
When the auto mobile company introduces newer models. The prices of older models would have reduced premium.
India has been classified into Zone A and Zone B. Zone A includes all major cities including Bangalore, Ahmedabad, Chennai, Mumbai, Kolkata, Pune, and New Delhi, where accident risk is considered to be high, the insurance premium for cars in Zone A is higher than in Zone B (the rest of the country).
Facilities like roadside assistance, lock and key replacement and loss of personal belongings increases the premium quote.
A car insurance deductible is amount of money you would have to pay for repair of your car before car insurance company pays for the rest. Deductibles are of two types Compulsory Deductible and Voluntary Deductibles
Compulsory Deductible is to be paid compulsorily by policyholder whenever claim arises. It is fixed by Insurance Regulatory and Development Authority of India (IRDAI). It ranges from Rs.50 for two wheelers to Rs.500 for four wheelers. If car is old or if the car insurance company consider the car to be of higher risk then it would charge a higher deductible.
Voluntary Deductible is limit decided by policyholder on the portion of claim that would be raised in event of accident, deductible which is chosen by the policyholder himself after taking in consideration affordability and risk. If policyholder chooses higher voluntary deductible, he/she would then have to pay a higher proportion of claim but would have to pay a lesser car insurance premium.
Insured Declared Value can be taken as current market price of your car. It is the maximum sum assured that car insurance company would pay in case of claim being raised on loss or theft of your car or if gets damaged beyond repair.
In order to arrive at Insured Declared Value of your car, car insurance company adjusts market price of the car with standard depreciation rates as prescribed under Indian Motor Tariff Act.
Following table is used to arrive at Depreciated Value of your Automobile
|Age of Vehicle||Depreciation Chart|
|0-1 year||5% depreciation is taken, insurance done at 95% of price|
|Renewal after 2 nd year||20% depreciation is taken, insurance done at 80% of price|
|Renewal after 3 rd year||30% depreciation is taken, insurance done at 70% of price|
|Renewal after 4 th year||40% depreciation is taken, insurance done at 60% of price|
|Renewal after 5 th year||50% depreciation is taken, insurance done at 50% of price|
|Renewal after 6 th year||10% to 15% depreciation on Insured Declared Value of previous year is deducted year on year|
Traditional way of buying car insurance include contacting a field agent and filling up the cumbersome form and going through it which is time consuming. You can save time with online methods of buying and comparing car insurance plans. Online purchase of car insurance has become preferred method for majority of the customers. Now let’s look at the benefits of buying car insurance online.
1. Time Saving: Buying car insurance online saves valuable time of customer spends on meeting an agent. As all information is available online, all one has to do is to click, read and submit the required information to get their car insured.
2. Information Availability: As all the information on car insurance is available online, there is complete transparency and no possibility to misrepresent facts.
3. Comparison of Car Insurance Plans: With help of online tools, customers are able to compare the car insurance plans based on parameters they consider are crucial.
4. Premium Calculator: With tools such as car insurance premium calculator, customer would be able to know about the premium that needs to be paid.
5. Reduced Premium: Some car insurance companies offer discount on online payments of premiums.
For more details on risk factors, terms and conditions please read sales brochure carefully before purchasing the insurance policy/concluding a sale.
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Landmark Insurance Brokers Pvt. Ltd.
IRDAI CoR No: 216 | Broker Code: DB 089/03 | Valid From 13/10/2018 till 12/10/2021 (originally licensed on 13/10/2003 and renewed thereafter) | Category: Direct (Life & General) | A member of IBAI
Regd. Off: Unit No. 402, 4th Floor, Business Avenue, Lane No. 6, Koregaon Park, Pune 411 001
Website: www.policyboss.com | Toll Free: 1800-419-419-9*
* Working hours: 9:30 a.m. to 6:30 p.m. (Monday to Saturday)