Here are 10 FAQs on Motor insurance in India:
1. Is motor insurance mandatory in India?
Yes, as per the Motor Vehicles Act of 1988, it is legally required for all vehicles to have at least a third-party liability insurance policy.
2. What are the different types of motor insurance available?
Third-Party Liability: The basic mandatory cover. It only covers damage or injuries you cause to a third party (person or property).
Comprehensive Insurance: Wider coverage than third-party insurance. It includes damages to your own vehicle due to accidents, theft, fire, natural calamities, etc., as well as third-party liability.
3. What factors affect my motor insurance premium?
Vehicle Type: Model, make, cubic capacity (engine size)
Age of the Vehicle: Older vehicles often attract lower premiums.
Location: Where you register and drive your vehicle (some areas are deemed higher risk).
Driving History: Your claim history and traffic violations can influence your premium.
No Claim Bonus (NCB): A discount for claim-free years.
Add-ons: Optional covers like zero depreciation increase your premium.
4. What is an IDV (Insured Declared Value)?
IDV is the maximum amount your insurer will pay if your vehicle is stolen or completely damaged (total loss). It represents the current market value of your vehicle and affects your premium.
5. What are add-on covers available in motor insurance?
Zero Depreciation: Reimburses the full cost of parts replacement without factoring in depreciation.
Engine Protection: Covers engine damage due to events like waterlogging.
Roadside Assistance: Provides help in case of breakdowns, towing, etc.
Return to Invoice: Offers a pay-out covering the gap between IDV and the car’s on-road price in case of total loss.
6. What is No Claim Bonus (NCB)?
It’s a discount on your renewal premium if you don’t make any claims during the policy year. NCB increases with successive claim-free years.
7. How do I file a motor insurance claim?
Inform your insurer immediately after an accident
File a FIR (First Information Report) with the police, if needed
Provide necessary documentation (policy, driving license, etc.)
The insurer will assess the claim and approve the repair expenses.
8. What is cashless claim settlement for motor insurance?
If your insurer has tie-ups with garages, you can get your vehicle repaired at a network garage, and the insurer settles the bill directly.
9. Can I transfer my motor insurance policy when selling my vehicle?
Yes, you can transfer your policy to the new owner of the vehicle. The new owner may get the No Claim Bonus (if any) transferred as well.
10. Can I buy or renew my motor insurance policy online?
Yes, you can buy or renew motor insurance conveniently online from insurance companies’ websites or comparison portals.
