Insuring your vehicle is a legal requirement apart from various benefits it provides. Individuals and corporate owners of the private vehicles and the financier of the vehicles can insure a car. BENEFITS Covers risk towards yourself and your own vehicle Covers the financial liability that may arise from an accident in which the other party is injured. If any major accident involves hospitalisation too, the expenses can be dealt by insurance. RISKS INSURED Depending on the specific policy you take, these may be the risks that may be insured. Loss or damage by accident, fire, lightning, self ignition, external explosion, burglary, housebreaking or theft, malicious act. Riot and strike; terrorism; earthquake; flood, cyclone and inundation. Whilst in transit by rail, road, air, elevator, lift. Perils under 1(b) can be deleted and a discount in premium availed.

CAR INSURANCE BRANDS National Insurance Company New India Assurance Co. Oriental Insurance Company United India Insurance Co. ICICI Lombard IFFCO-TOKYO Reliance General Insurance HDFC Tata AIG

• Liability for third party injury/death, third party property and liability to paid driver.
• On payment of appropriate additional premium, loss/damage to electrical/electronic accessories, PA cover for drivers, insured or any named person, unnamed passengers can also be taken.
• Certain discounts in premium are also available.

• Own Damage
  • Actual amount spent for repairs/replacement subject to depreciation and sum insured as per survey report.
  • Garaging and towing charges - up to a specified limit
  • Damage to tyres (when vehicle is also damaged) - 50 % of cost of replacement.
  • In case of total loss, market value at the time of loss or sum insured whichever is less.
• Act Liability
  • Death or bodily injury to third parties - Unlimited
  • Death or bodily injury to any person carried in the car provided they are not insured employees and not carried for hire or reward - Unlimited
  • Liability to paid driver - As per W. C. Act
  • Third party property damage - up to specified limit
  • All costs and expenses incurred with company's written consent

Generally, policies do not cover the following:

• Consequential loss; depreciation; wear and tear; mechanical and electrical breakdown; failure or breakage.
• When vehicle is used outside the geographical area; when used contrary to limitation as to use; driven by a person other than the driver stated in driver's clause.
• War perils, nuclear perils and drunken driving.

All cars are rated on the basis of cubic capacity. The advanced technology and safety features of your vehicle are not taken into consideration. Your vehicle’s insured value is determined on the basis of the insured’s declared value (IDV), which specifies the percentage of depreciation. This means indemnity for total loss/constructive total loss is based on IDV, earlier the market value was used for this. For the purpose of Total Loss/CTL Indemnity and for Premium computation, IDV will be the Sum Insured. It will be determined and fixed at commencement or each renewal of your policy. For the purpose of fixing the IDV of the vehicle, the reinstatement value of the brand and model of the vehicle (with side car (s) and /or accessories if any fitted to the vehicle but not included in the manufacturer’s list of selling price of the vehicle) including the road tax paid, proposed for insurance at the commencement of insurance/renewal period should be adjusted for depreciation. The age of the vehicle will be considered at the time of insurance/renewal.

Here is the schedule of depreciation for IDV Private Cars/ Motorised two wheelers :


Following is the Schedule of depreciation for IDV Obsolete Model of Private cars and Motorised two wheelers.

In case of claims the maximum liability will be the sum the vehicle is insured for or the insured's declared value which will be the amount payable in case of total loss or constructive total loss (CTL) irrespective of the market value of the vehicle. also in case repair costs go over 75 percent of the IDV it will be taken to be a CTL.

If you have an anti-theft device installed in your vehicle, you'll be eligible for a discount on your insurance premium. There are two kinds of Motor Vehicle Insurance: "Motor Policy A" (Third Party Risk) the 'Act Only Policy' covers third party damages up to Rs 6000/- only. Risk from fire and theft requires an additional premium. "Motor Policy B" (Comprehensive Insurance Policy) protects you from the following eventualities:

• Damage due to man made or natural calamities: Natural calamities include fire, floods, hurricanes, landslides, cyclones or earthquakes. Man made calamities include, theft, riots, strikes, malicious acts of vandalism or damage occurring in transit via road, rail, waterways or air.
• Personal accident cover: In the event of an accident, it is important that you have personal accident coverage. You may also opt for a personal accident cover for passengers traveling with you, just to be on the safe side.
• Third party legal liability: This would cover you for legal liabilities that result in permanent injury/death or damage to property, in the event of a mishap.

The insurance policy is valid for a period of one year. If you do not make a claim during the policy period, you are eligible for a discount, which is adjusted against the renewal premium. In case your policy expires, you can still avail the no claim bonus if you renew the policy within 90 days of its expiry.
The following rates of discount apply:First year - 20%
Second year - 35%
Third year - 50%
Fourth year onward - 65%


This insurance policy does not cover these circumstances:

• Damages arising out of mutiny, nuclear risk or war
• Depreciation and consequential loss thereof
• Mechanical/ electrical failures
• Wear and tear of car tires and tubes
• Vehicle being used other than the purpose for which it was purchased
• Damages occurring from driving without a valid license
• Damages occurring from intoxication by alcohol or drugs
• Everyday wear and tear

You will need the following documents to submit to the insurance company:

• Your Vehicle Insurance Policy
• Original + Copy of the Registration Book
• Original + Copy of Driving License
• FIR in case of an accident involving third party injury or damage
• Claims form + the estimated cost of repairs from your workshop

Once you submit these documents, the insurance company will inspect the damaged car and authenticate the estimated cost of repairs. Once the surveyor has completed the inspection, the car can be repaired.

Present the final bill for the repairs and a stamped receipt from the workshop to the Insurance Company for settlement of the claim. An insurance surveyor will once again certify the repaired car, after which, you can take delivery of it. If your car is stolen follow the following procedures if you have theft covered in your insurance:

When you realise your vehicle has been stolen, inform the police immediately. Also inform your insurance agent.
Chances are you may have also lost your Registration Book too (if you carried it in your vehicle always). In such a case obtain a duplicate one from the Transport Authorities immediately.
Keep in touch with the nearby police to know the progress of the investigation.
If your vehicle has not been traceable for a reasonable period of time get a report from the police stating so.
Once your vehicle is traced immediately inform the insurance company.

Requirement For Claims:

• Intimation and policy.
• Filled in challan form.
• FIR copy.
• Untraced report.
• Intimation to RTO about theft.
• If RC is stolen along with the vehicle, applications to RTO for a duplicate.
• Consent letter.
• Discharge voucher from the authorised signatory.
• Letter of indemnity and subrogation on stamp paper of Rs.10/-.
• Ignition keys.

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