Before we proceed to understand the Motor Vehicle Insurance, it is always important to know who these Insurers are. An insurer is a person or a company that contracts to indemnify another in the event of loss or damage.
Insurers carry out a number of tasks out of which several tasks are vital for the society. And while there are many in the market, we have listed a few for your usage, all on one platform, so that you can pick and choose the best one in a click of a button.
The major task of insurers of motor insurance companies is to assist the policyholders to have a foresight, for you to deal with risks which might arise in the future proficiently. They do so by educating you about the right insurance products and aiding you to get your claims covered by the policies if needed.
The top 10 motor insurance companies in India are determined on the basis of some standard parameters that make them the most preferred ones in this industry.
Below mentioned factors are the criteria for their rankings that will help you understand why they are considered so,
- Purchase/Renewal of Policy
- How easily the client can get the claims
- Payment options
- The number of garages and servicing centres they have a tie-up with
- Customer satisfaction
Importance of Motor/Vehicle Insurance Policy in India
If you can afford your own vehicle than you will never prefer using a public transport for sure. With the increased income slabs, people have got the tendency to pay more and this paying capacity inspires them to have a vehicle which also increases the mobility.
But like everything, driving also has its pros and cons. If driving is a luxury than it carries risk also. The cases of road accidents and deaths due to rule breaking or not following traffic rules, are reported daily in the newspapers. More over the cost of spare parts coupled with high repair costs squeezes your pocket which proves that having a good vehicle insurance policy package is essential these days.
Vehicle insurance or Motor insurance or auto insurance is an insurance mainly purchased for two wheelers as well for four-wheelers or you can say any vehicle on the roads. The primary objective of this vehicle insurance is to provide a protection to you and your vehicle against any physical damage resulting from accidents.
A motor or vehicle insurance in India covers any kind of loss or damage to the auto mobile or its spare parts due to man-made or natural calamities. Insurance policy gives accident cover for the vehicle’s owner while driving and third-party liability and for the passengers sitting in the vehicle at the time of accident.
There are hundreds of more reasons why you should have a vehicle insurance policy depending upon the needs of the different people. But the main reasons for having a motor or vehicle insurance are listed below:
Loss or Damage: We all know that the traffic condition on Indian roads are becoming worse day by day. People have no sense or driving at all and everyone is in hurry. Moreover, the kind of traffic management we have in our country, you can’t find a single day without banging of vehicles causing damages. One of the main reasons for having vehicle insurance policy is that it covers the expenses incurred due to any loss or damage to your vehicle.
Hospitalisation: Nobody knows that a small accident can put you in a difficult situation. A small accident could hurt you badly and you need to be hospitalized. In such a situation if you have a Vehicle Insurance Policy, you need not to worry about the hospital expenses incurred due to accident. The insurance company will take care of your long hospital bills.
Decreases Your Liabilities: According to the Motor Vehicles Act, third party liability insurance coverage is mandatory in India. This policy gives you coverage from legal matters if you harm someone with your insured vehicle while driving. For e.g., if your vehicle met with an accident which results in damages to a stranger’s property or causes injuries to him/her or causes death, the insurance company will pay the expenses for their treatment and save you from legal matters.
Compensates Your Family: The demise of a vehicle owner is the most unfortunate outcome of a road accident. Once the bread-earning person of a family has passed away, it becomes difficult for his or her family to manage their daily needs of life. In such situation, if someone has vehicle insurance policy, the insurance company will compensate to help the family after the unfortunate event.
Apart from the above-mentioned points, having a vehicle insurance policy have a list of benefits which every car owner should know. Below is the list:
Minimizing Stress level: You will be more relaxed if you have insured your vehicle and have a suitable vehicle insurance policy.
Medical Expenses: A comprehensive car insurance policy even takes care of your medical expenses arising due to the accident.
Repair Parts: In case of any loss or damage to your vehicle spare parts, the insurance company will pay to some extent which means the depreciated value of repairing or replacement of the spare part.
Mandatory by Law: The Motor Insurance Act has made Third party insurance mandatory. The police have all the rights to check the documents of your vehicle like PUC, license and insurance policy, at any point of time. If you failed to provide documents than you will be in trouble.
What is covered in Motor or Vehicle Insurance?
- Accident occurred due to external means.
- Man-made calamities, such as burglary, riots, theft, explosion, and strikes, terrorism, etc.
- Natural calamities like fire, cyclones, earthquakes, floods, typhoons, storms, hurricanes, lightning, etc.
- When the vehicle is in Transit by rail, road, air or waterway.
- Third party liability.
- Coverage for an owner driver in case of demise.
What is not covered in Motor or Vehicle Insurance?
- Wear and tear of the vehicle due to its usage.
- Loss or damage due to depreciation of vehicle.
- Electrical or Mechanical breakdown.
- Wear and tear of consumables like tires and tubes.
- Loss or damage incurred to the vehicle outside the geographical area.
- Loss or damage caused by driving under the influence of intoxication (alcohol or drugs).
- Loss or damage caused by an unauthorized person driving without a valid driving license.
- Loss or damage due to nuclear risks.
- Damages caused due to over speeding.
* The above, may vary from insurer to insurer.
Types of Vehicle/Motor Insurance
In today’s world, travelling by vehicle is unavoidable and a daily routine for all of us, in one or another way. While traveling, vehicles are required, either four-wheeler or two-wheeler. But along with the ease in commuting, vehicles expose us to multiple risks such as bodily or financial loses. Hence, the main responsibility while driving is to secure your vehicle from any physical damage, damage to the owner or driver, loss or damage to the other party i.e. third-party liability. For this, having a vehicle insurance is the best way to protect yourself from any kind of legal or financial uncertainties.
In extreme cases, it has been observed that if the vehicle is not insured then the owner of the vehicle finds himself/herself under the burden of high financial liability. But if your vehicle is insured and you have a vehicle insurance then you need not to worry about any legal proceedings as well as the expenses incurred in hospitals due to any kind of road mishap. Vehicle insurance covers you from the loss or damage to the vehicle or its parts due to natural or man-made calamities. An insurance provides accident cover for the owner of the vehicle as well as for the passengers and the third-party legal liability.
Types of Motor Insurance
For any type of vehicles weather a four-wheeler or two-wheeler which includes cars, bikes, scooters, trucks and other road vehicles, you need a vehicle insurance policy. The vehicle could be used for any purpose, commercial or private use. There are mainly three types of vehicle insurance:
Private Car Insurance Policy
The first mandatory thing after purchasing a car is taking insurance policy. It is a financial safeguard for large variety of situations. Car insurance policy covers loss or damage to your car from the natural disasters like earthquake, lightning, floods and so on as well as from the man-made calamities like theft, fire, terrorists attack, accident, riots, etc. The premium amount for the car insurance policy depends on the value of the car, its make, the manufacturing year of the car and the state where your car is registered. There are further two types of car insurance policy: Comprehensive Car Insurance policy and Third-Party Liability Insurance policy.
- Comprehensive Car Insurance: This type of policy gives full coverage to the policy holder which includes loss or damage to the insured car, personal accident and third-party liability in case of any accident. Comprehensive insurance policy gives end to end coverage to the policy holder which includes any loss or damage to the insured car and an unknow stranger (third-party) and personal accident. It protects you from any kind of financial or legal crises.
- Third-Party Liability: According to the Motor Insurance Act, third party motor insurance is compulsory in India. This policy only covers the loss or damage to the third party, who has been injured by an insured car, in an accident. This policy does not include theft and damage to the insured car.
Two-wheeler Insurance Policy
In the past two years, a significant increase in the number of accidents has been observed on Indian roads. The reason for increase in accidents is the poor road conditions in India, the worst traffic and the bad traffic sense of Indians. Everybody is in hurry to reach the destination, specially the two wheelers. In addition, being the most convenient way of transport, two-wheel riding is equally risky. So, it is mandatory to have a two- wheeler insurance in India. This insurance includes loss or damage to the vehicle and damage to third party in case of any unfortunate mishap. This insurance covers the two-wheeler from any man-made or natural calamities.
Commercial Vehicle Insurance
Vehicles used for business purpose are called commercial vehicles. These types of vehicles are used to carry light and heavy weight goods from one place to another. Commercial Vehicle insurance covers the loss or damage to the vehicles used for business purpose, complete third-party liability i.e. bodily injury, death or property damage in case of any mishap. Insurance is available for commercial vehicles like ambulance, trailers, buses, taxis, trucks, carriers, three- wheeler autos, and special types of vehicles like agricultural mobile rig, grabs, excavator, tractors, shovels, etc.
Other than these three types of motor insurance policies, there is a list of add on plans available in the market which enhances your coverage for better protection. You can choose add-on covers according to your need, in addition to your standard motor insurance policy.
- Zero Depreciation Cover – One of the most popular add-on cover in motor insurance is zero dep cover. Opting for this cover means that the policyholder is eligible to receive full claim amount on the value of replaced parts.
- NCB Protection Cover– The NCB or No Claim Bonus is a kind of reward given to a policyholder in case of not making any claims during the policy term.
- Roadside Assistance Cover– In case of emergencies like battery issues, empty fuel, flat tyres, and so on, this add-on cover provides you an assistance even in the remote locations.
- Key Replacement Cover– This cover offers reimbursement for the cost of a substitute key, in case of a lost ignition key
- Engine and Electronic Circuit Cover– In case of a damage to the insured vehicle’s engine or electronics circuits, this insurance cover takes care of your expenses.
Things to Consider Before Buying Motor Insurance
In modern life, if you own a vehicle whether four-wheeler or two-wheeler, one of the most important as well as necessary thing is having a Motor Insurance for your vehicle. If the vehicle runs on the road, there is a possibility that it could collide somewhere, or someone can steal it. It is always good and advisable to guard your vehicle and yourself against such eventualities beforehand and the best way to safeguard yourself is by choosing a right insurance for your vehicle.
The increased usage of internet has raised the competition level so high between the insurance companies that they are under pressure to offer competitive deals to grab the customers. Customers, now days, can sit anywhere and compare the prices of different companies for the same policy. So, why not influence the internet’s potential to help the customers to save their time, money and find the best motor insurance policy for them.
One should be very clear about the fact that Motor insurance is not optional, it is mandatory by law. If you own a vehicle than you must have an insurance. So, it is important to know about the requirements that has to be consider before buying a motor insurance. Here is the list of those things which needs to be considered before buying an insurance:
Know your Plan
It is very much important that you must know about the type of plan which you have for your vehicle. Though third- party insurance is mandatory according to Indian Motor Act, but it does not cover any damage caused to you and your vehicle. So, having a third- party liability insurance is not enough for you. You should take a comprehensive plan which provides you over all protection whether damage to your vehicle or personal accident or third-party liability. It also gives you a coverage from fire, theft and any other damages.
While theft and accidental damages are covered under the standard policy, but not all the parts of your vehicle get full coverage under this policy. So, add-on covers, as the name suggests, offers you an insurance for several damages in addition to own damage and third-party based on your risk and requirements. There are different types of add on covers available in the market which provides you protection according to their names. You need to identify your requirements and choose accordingly for which you need to pay an extra premium. For e.g.:
- Zero Depreciation Cover:A comprehensive policy deducts the depreciation value of the vehicle and pays the remaining amount for repair. Whereas if you have zero depreciation or bumper to bumper your need not to pay a single penny from your own pocket. The insurance company will pay full amount in case of any claims. It is to be noted that under this add on, most of the insurance companies allows claims only twice in one policy year.
- NCB or No Claim Bonus Protector: NCB protector cover, as the name suggests, gives a protection to your no claim bonus which you have gained during past years by not making any claims against your insurance policy. In case of zero claims or no claim, you can get up to 50% of the premium amount and with this cover plan you will be entitled to the bonus even after making claim.
- Consumables Cover: Under this cover, consumables or minor components like engine oil, gear oil, nuts & bolts, lubricants and similar items except fuel are replaced/refilled during repair. However, the insurance companies do not pay for these consumables with the basic comprehensive policy.
- Roadside Assistance: With a roadside assistance cover, you need not to find any garage in case your car got stuck somewhere. All you have to do is, just call your insurance company and they will assist you in all the possible way like repair of vehicle at the same point, arraigning for a towing vehicle, arraigning a ride for you, etc.
- Loss of Personal Belongings:Personal belongings like laptop, smartphones, etc that are kept in the vehicle and affected in an accident are being taken care if you have this cover.
- Key Replacement:This cover gives you a coverage of misplacing or damage to your vehicle keys.
In order to save your pocket from the burden of expenses, it is important to know about the discounts available in the market before buying an insurance. There are different insurance companies offering different discounts and features for the same policy. Therefore, you should compare them online before buying an insurance.
Claim Procedure: It is advisable that before buying an insurance from any company check their claim procedure carefully as well as its claim settlement ratio. It is easy to figure out online by doing a simple search for the company you are considering. Go with company which has best claim settlement ratio and easy claims process.
Garages offering cashless facility: Checking the network for the dealership and cashless garages associated with the insurance company which you are considering for taking an insurance is also very important. Keep this in your mind and choose the insurance company that provides you a cashless facility along with hassle-free repair in case of any accident.
Why to Buy Motor Insurance Polices with us?
Many times, people have this question in their minds that why don’t we buy Motor Insurance policies Online or why don’t we buy motor policies from various Telicallers who offer us very attractive premiums and more often than not even provide the Quotes on mail with all Add on’s specified in the Quote.
To this we would say that Everything that Glitters is Not Gold.The concept of Low premiums with Maximum Coverage is very attractive but then we should as a customer also just not look at the Quotations.We shall also have to look into as to , are we buying from IRDAI authorized Agents or not , what is the background of the Company we are buying from,will we get the claim services and support when we require them the most.
So at Pinak , we assure you that what ever we say we deliver.Buyers think – understand and then buy.