No claim bonus: NCB entitles you to take discount on auto insurance renewal premium, if you have not made any claims for the last 1 year. It is a reward scheme to motivate you to cautiously use your vehicle.
Transfer of no-claim bonus: You can transfer the full benefits of no claim bonus when you tranfer from one auto insurance company to another.
Voluntary Excess discount: A further discount on the premium is available if you opt for a Voluntary Excess (available only for Private cars and Two wheelers)
Automobile Association Membership: You can also avail of additional discount if you are a member of a recognized Automobile Association in India (available only for Private cars and Two wheelers).
Anti theft devices: In case you have installed an ARAI approved anti theft device in your vehicle, you get a discount of 2.5 % on the OD Premium to a maximum of Rs. 500/- for four-wheelers and Rs 50/- for two wheelers
Cancellation of policy
You may cancel your motor insurance policy at any time by notifying your insurance company in writing, inclusive of the date you want to stop the policy.
It is a good idea to have a new policy in place before cancelling your previous one so there is no gap in between coverage.
Insurance companies also generally offer a refund premium based on how old your current insurance policy may be, the newer it is when you cancel it, the more refund you will receive.
1.Loss or damage of own vehicle due to Fire/theft, natural and man made calamities
Fire/Theft - Insurance cover for fire and theft only if vehicle is in garage and not in road or in use. Man-made - Burglary, theft, riot, strike, malicious act, accident by external means, terrorist activity, any damage in transit by road, rail, inland waterway, lift, elevator or air. Natural - Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide.
2.Loss or damage due to accident :
Medical coverage for the owner of the vehicle, the driver and passengers (in case of private vehicles).It covers theowner while he is driving and cause an accident.
3.Liability to third party :
It protects you(owner) against legal liability arises due to accident causing dealth or injury or property damage. This is compulsory according to law. Limit for third party property damage: Minimum Rs 6000, Maximum Rs 1 lakh for two wheeler, Rs. 7.5 Lakh for Private Cars and Commercial vehicles. Limit for bodily injury / death claims is unlimited in all classes of vehicles.
Additional coverage :
On paying additipnal premium insurance company covers the following risk:
1.Accessories fitted in the vehicle such as stereo, fan, air-conditioner and electric and non-electronic items. 2.Personal accident cover to paid drivers, cleaner and passengers. 3.Bi-fuel kits comprising LPG/CNG systems
The policy does not cover the following:
Damage due to natural calamities like flood, earthquake etc.
Consequential losses, depreciation, wear and tear, rust and corrosion, mechanical or electronic. breakdowns, failures or breakages, equipment or air-conditioner malfunction.
Driving a car with invalid driving license.
If driver drives the vehicle whilst under the influence of alcohol and drugs
Loss or damage caused by the vehicle for being used for unlawful purpose.
If the vehicle is used for any motor sport or competition.
Claim involving damage due to an accident
Inform the insurance company about the accident.
Submit the claim form along with other additional documents required by the insurance company.
They appoint inspector to inspect your vehicle and wait for his report.
The workshop will start repairing the vehicle once it get approval from insurance company.
You can collect your vehicle from workshop after it is repaired.
Submit the original bill, proof of release, and cash receipt from the garage to the insurance company.
Claim for third party damage You can make third party claim if you are not the cause of accident
Inform insurance company immediately for the party who is in fault.
As you are not the cause of accident must try to minimize your loss.
Appoint a licensed adjuster so that he can access the total loss incured in your vehicle.
Submit the adjuster's report along with claim form and other additional document like Registration Certificate, Diving License, FIR.
Claims involving theft of vihicle In terms of a stolen vehicle, there are a few procedures that must be followed
Lodge a police report immediately.
Inform insurance company and provide them with a copy of the FIR.
Submit the final report of the theft followed by claim form.
After submitting the claim form you must cooperate with your insurance company and police during the theft investigation.
Incase the claim gets approved.Submit the Registration Certificate of the stolen vehicle along with duplicate keys of the vehicle and a letter of subrogation and an indemnity on stamp paper.
What is the term of an auto insurance policy? Auto insurance policies are valid for one year. You must renew your policy every year.
What is IDV?
For a new vehicle, the purchase price = insured value. Insured value is referred to as Insured's Declared Value (IDV). If the vehicle is damaged or stolen or third party claim involved or an accident taken place, the claim amount payable is determined on the basis of the IDV.
The IDV is estimated on the basis of the manufacturer's listed selling price of the brand and model of the vehicle
For the vehicles beyond 5 years of age, the IDV will be determine on the basis of understanding between Insurer and the Insured.
What is Malus?
Premium depends on following factors: 1. Insured's Declared Value (IDV) 2. Cubic capacity. 3. age of vehicle, 4. Claims experience, 5.Geographical zone, 6. GVW in case of commercial vehicles. At the time of renewing your policy, the insurance company loads an extra charge on to your premium . This extra charge is calculated after considering these factors called Malus.
What is a cover note?
A cover note is a temporary certificate issued by insurance company after the policy owner has given the full premium amount and filled in the proposal form.
A cover note is valid for a period of 60 days from the date of issue of the cover note and the Insurer shall issue the Certificate of Insurance before the cover note expires.
