Welcome to SkyFire Insurance Broking LLP!
Welcome to SkyFire Insurance Broking LLP!
Car Insurance is a kind of motor insurance policy that protects a car from any inevitable dangers that will cause financial losses. It is a risk-sharing contract between the motor insurance firm and the car owner where the former guarantees to pay for the repairs/ replacement of the car in exchange for a premium. A motor or car insurance policy provides coverage against any risks or dangers arising out of accidents, third party liabilities, theft, natural calamities, fire, man-made problems, etc. resulting in damages or loss of the car.
It is mandatory to buy car insurance in India no matter what type of vehicle it is, i.e. personal or commercial vehicle. The insurance company compensates for the loss or damage caused to the insured vehicle and a third-party from the insured four-wheeler. Here are a few reasons to buy a new car insurance policy in India in addition to it being a mandatory requirement as per the Motor Vehicle's Act:
1. It remunerates or pays for the damage caused to the car as a result of a collision, accident, death, or natural calamities, which otherwise would need to be paid by the insured.
2. It reduces the monetary and legal damages that can arise from third-party liability or damage.
3. It remunerates for hospitalization expenses in case of an accident.
4. With rider advantages like roadside assistance, zero depreciation, the expenses can be further reduced.
Also, the premium amount of your 4-wheeler insurance is decided based on the Insured Declared Value, known as IDV of the vehicle. If you increase the IDV, the premium rises and if you keep it lower, then the premium reduces.
There are three types of car insurance policy available in India
A comprehensive car insurance policy is a type of insurance that provides coverage for third party liability as well as damages caused to your car. As compared with third party liability car insurance, a comprehensive four wheeler insurance policy offers extensive coverage, more benefits and covers the damages caused to the insured car in case of an accident, collision, theft, etc.
A comprehensive policy can be further extended by choosing add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc. This kind of coverage is the most popular one because it offers end-to-end coverage and thus less stress for the policyholder.
Third party car insurance protects you from any legal liability due to your own car’s involvement in an accident. Your insurance provider will repay you for death, disability, injury, or property damage to any third-party. Therefore, you are saved from the financial liability towards the third-party.
Third-party Liability Car Insurance cost is a mandate in India under the Motor Vehicles Act, 1988.
| Engine Capacity | Third-party Liability Car Insurance Price Effective June 16, 2019 in INR |
|---|---|
| Less than 1000 CC | 2,072 |
| More than 1000 CC and less than 1500 CC | 2,072 |
| More than 1500 CC | 7,890 |
This type of insurance is also known as usage-based motor insurance, this insurance policy permits the insured to pay the insurance premiums as per the kilometers driven. This new product is likely to be helpful for those with multiple cars, not all of which are used very frequently. As per the IRDA guidelines under the Sandbox project, a few insurers like Bharti AXA, Acko General, ICICI Lombard, TATA AIG, Oriental car insurance have started offering Pay As You Drive insurance policy, through their website, online aggregators websites, agents, or other distribution channels.
The policy offers extensive coverage for own damage and third-party liability on a pilot basis for a term of one year. The policy seeker will have to declare the gap he/she expects to travel during a policy year and based on that premium for 'Pay as You Drive policy' will be decided. Although, the insurers have come up with 3 slabs for distance covered -Rs 2,500 km, 5,000 km, and 7,500 km.
A comprehensive car insurance policy not only provides third-party coverage but also offers cover against personal accident. In personal accident coverage, you get a pre-defined amount against death because of the accident and permanent total disability. Additionally, one can purchase this cover for co-passengers as well, even on an unnamed basis, which will be maximum as per the seating capacity of the vehicle. Still, the amount of coverage is pre-determined even in this case.
A comprehensive car insurance policy also provides cover against damage or loss to your car. Reasons for damage can be like fire, accident, or self-ignition, are covered in this plan. Additionally, if the car faces losses because of theft, burglary, terrorism, riots, then also an insurance policy covers it. Also, a car insurance plan covers loss or damage occurred due to transit via train, air, road, inland waterways, or lift.
Most of the car insurance providers have a vast range of network garages that are spread across the country. This feature guarantees that you can get the service of your car anywhere in India.
One of the key benefits of having a car insurance policy is its No Claim Bonus (NCB) feature. You are allowed to avail of this offer for each claim-free year. The NCB is available as a discount on the next premium and this makes car insurance policy comparably more affordable.
If your car meets with an accident and causes loss or damage to the property of a third-party, then you don't need to worry as it is covered under car insurance. Moreover, if you come across any legal liabilities because of an accident caused by your car like death or injury to any person or property, then do not worry, your car insurance provides you coverage for the same.
The policyholder should renew his private car insurance before the expiry of his existing policy. This will confirm that there is no break in policy and you can continue to avail benefits such as no claim bonus.
Zero Depreciation Cover in car insurance is an add-on cover that allows the policyholder to get compensation up to the insured declared value (IDV) or current market value of the car without taking depreciation into account. There is a need to pay an extra premium amount to avail benefits of zero DEP in your four wheeler insurance policy.
The limit to filing a claim for car insurance per year differs from one insurance provider to another. Most of the insurance companies allow multiple claims in a year until the IDV is not exhausted. You should check your policy documents to know the exact number of times you can claim your 4 wheeler insurance policy in a year
Bumper to bumper car insurance refers to the insurance policy that provides complete protection to the insured vehicle without considering the depreciation of its parts. In other words, this type of 4 wheeler insurance allows the policyholder to obtain compensation up to the market value of the car in case of damage or loss to the car. Also, it attracts about 20% higher premiums than your regular four wheeler insurance policies.
IDV or Insured Declared Value is the maximum amount to be paid by an insurer at the time of a claim if the vehicle is a total loss or stolen. It is the sum insured and is fixed at the start of the policy period for each insured vehicle.