CAR INSURANCE IN INDIA

MEANING

Car insurance in India is a class of insurance policy whereby the insurance company undertakes to provide insurance protection to the policyholder upon the happening of certain future risks. To crystallize this policy, the policyholder pays some price which is the insurance premium.

In India, car insurance is compulsory. This is not minding whether the purpose for which the car is used is commercial or a personal.

TYPES OF CAR INSURANCE IN INDIA

There a number of the types of car insurance in India as some of them include;

1. Third party liability car insurance
2. Comprehensive car insurance

THIRD PARTY LIABILITY CAR INSURANCE

This is the type of car insurance policy in India that offers protection to third parties other than the owners of the car. The protection from this type of insurance policy covers incidences such as damage to third party cars, injuries to the bodies to the third parties, or even deaths in some extreme cases. That is to say, this policy provides cover/ indemnity that will be capable of taking care of the repairs of third party cars as well as medical bills from injuries sustained in the event of car accidents in India.

This type of car insurance in India is compulsory irrespective of whether it is private and commercial cars.

The cost of premium for third party liability car insurance policy depends on so many factors. These factors may include the type of car, the age of the car, experience of the driver, market value and other factors.

COMPREHENSIVE CAR INSURANCE IN INDIA

This type of car insurance policy in India offers a wider insurance coverage than the compulsory liability car insurance policy. It is designed to cover the payment for repairs arising from incidents such as falling trees, vandalism, tornado, theft, other natural disasters such as earthquake, flood, cyclone etc. Buying comprehensive car insurance in India will be very beneficial financially if you drive an old car with low value.

Similarly, increasing your deductible for your comprehensive car insurance will help to lower your payable premiums.

And like other forms of car insurance, the comprehensive coverage will form part of the loss of the damage while the vehicle owner will have to pay for part of the costs. This is called the deductible.

Below are some of the items covered by comprehensive car insurance. It includes damages arising from;

1. Damages arising from collision with animals.
2. Natural disasters such earthquakes, cyclones, floods, hurricanes etc.
3. Fire
4. Riots resulting to vandalism
5. Theft, or theft of certain parts of your car
6. Broken windshields
7. Damages from falling objects such as tree branches, rocks etc.
8. And other risks that may enjoy coverage subject to your agreement with your insurer.

ADVANTAGES OF CAR INSURANCE IN INDIA

Car accidents happen all the time in India not minding how careful we are. If you cause a car accident, you will be responsible for any damage or injury arising thereof including costs of repairs, replacements or medical bills. Thus, without certain types of car insurance coverage, you will likely pay for these costs out of your pocket. Below are some of the benefits of car insurance in India.

1. You’ll pay less if you’re involved in an accident and causes damage to your car or injuries to third parties or their cars.
2. It also helps you avoid devaluation of your car.
3. Gives you peace of mind knowing that your policy protects you and you your family against losses arising from accidents.
4. Car insurance also protects you against legal liabilities arising from a lawsuit.
5. Some insurance companies in India offer a no-claim bonus (NCB) in which eligible customers can qualify for every claim-free year.

HOW TO MAKE A CLAIM

If you need to make a car insurance claim in India, you should:

1. Take photos of any damage, number plates of the other car and record any witness statement where possible.

1. Contact the emergency service centres of your insurer immediately
2. File insurance claim with your provider noting down the claim reference number.
3. Make sure you submit all the documents in relation to the accident to your insurer. This may include invoices etc.
4. File a report at the police station
5. Forward invoices and payment receipts to your insurer as necessary.