Auto Insurance
Auto insurance is mandatory for all new vehicles be it for commercial or personal use. Insurance Companies are coming out with comprehensive policies for its customers. They are also tying up with leading automobile manufacturers for a swift insurance process. An automobile may be insured against loss or damage by accident, fire, burglary,while in transit, third party accident etc. Auto insurance companies come out with unique plans for four wheelers, two wheelers, commercial vehicles.

Basics of Insurance
Insured against what risks?
1(a)  Loss or damage by accident, fire, lightning, self ignition, external explosion, burglary, housebreaking or theft, malicious act.

(b) Riot and strike; terrorism; earthquake; flood, cyclone and inundation

(c) Whilst in transit by rail, road, air, elevator, lift. Perils under

(d) can be deleted and a discount in premium availed.

2. Liability for third party injury/death, third party property and liability to paid driver.

3. 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.

4. Certain discounts in premia are also available.

Who can insure?
Individuals and corporate owners of the private cars and the financier of the car having insurable interest in it.

What will policy pay and how much?
Own Damage

  • Actual amount spent for repairs/replacement subject to depreciation and sum insured as per survey report.
  • Garaging and towing charges - up to Rs 1000/-
  • 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 Rs 6000/-
  • All costs and expenses incurred with company's written consent

In case of death of the Insured/any person entitled to indemnity for a liability incurred under this Policy,his personal representative will be indemnified ,as in the case of insured,if he observes all conditions as the insured himself.

When will policy not pay?

  • 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.

Types Of Auto Insurance Available

  • Two Wheeler Insurance
  • Car Insurance
  • Commercial Vehicle Insurance

Calculation of Auto Insurance Amount/Premium
Insurance companies are providing value- added service to its client by offering them instant auto quotes. Auto premium is determined by a number of factors like, make of the vehicle, year of manufacture, place of registration, current showroom price of the vehicle and model of the vehicle. It also depends whether the client is individual or corporate etc. The amount of premium increases with the increase in the price of the vehicle. Companies renew policies after their expiry. A discount on premium is sometimes provided to existing clients.

Auto Insurance Claim Procedure
Auto insurance claims can be accidental, theft claims or third party claims.

  • Insured should write the number of the other vehicle in case of an accident or third party claim
  • Names of witness should also be written down
  • File an FIR with the nearest police station
  • Insured should then contact the insurance company and get a claim number
  • A surveyor is appointed who reports the approximate value of loss or damage
  • Based on the report of the surveyor, insurance companies try to send the amount to the insured within one to three weeks
  • An individual might have to pay the repair charges himself and later get it reimburse

Documents Required for Auto Insurance Claim
For Accident Claims

  • Claim form duly signed
  • RC copy of the vehicle
  • Driving license copy
  • FIR on a case-to-case basis
  • Original estimate
  • Original repair invoice, payment receipt from the service center

For Third Party Claims

  • Claim form duly signed
  • Police FIR copy
  • Driving license copy
  • RC copy of the vehicle

For Third Party Claims

  • Claim form duly signed
  • RC copy of the vehicle
  • Driving license copy
  • Original policy copy
  • Original FIR copy
  • RTO transfer papers duly signed, mentioning that the vehicle cannot be located

Two Wheeler Insurance
Two wheeler insurance provides a kind of personal accidental cover for owners, while driving the vehicle. The policy generally provides protection from any loss or damage to the vehicle arising out of natural calamity like fire, protection against third party injury, burglary etc. The amount insured will depend on the current showroom price multiplied by the depreciation rate fixed by the Tariff Advisory Committee at the time of commencement of policy period. Fast and easy claim process by most insurance companies will ensure existing customer loyalty and widen the customer base.

Car Insurance
Car insurance is the fastest growing segment in the auto insurance category. This is so, because insuring car is mandatory for everyone buying a new car. Major car manufacturers are tying up with leading insurance companies to provide hassle free and quick insurance. Car insurance includes loss or damage by accident, third party insurance, insurance against burglary etc. The amount of premium will depend on the make and value of the car, state where the car is registered, year of manufacture etc. Insurance companies are trying hard to make the claim process simpler and quicker to widen the existing customer base.

Commercial Vehicle Insurance
Commercial Vehicle Insurance covers all vehicles not used for personal purpose. Trucks and HMVs are covered under this insurance. The insurance protects against damage caused due to accident, third party injury, protection against natural calamity, burglary etc. The premium amount depends on a number of factors like showroom price of the vehicle at the commencement of the insurance period, make of the vehicle, place of registration of the vehicle etc. Fast and easy claim processing by leading insurance companies is the key to ensure satisfied and loyal customers.

List of Some of Insurance Companies Offering Auto Insurance
HSBC India - AutoSecure
Bajaj Allianz - Bajaj Allianz's Motor Insurance
ICICI Lombard - Motor Plans
United India Insurance Co. - Motor Package and Liability Only Policies
The New India Assurance Co. - Motor Policy

*Terms and conditions may vary in different insurance companies.