Choosing Motor Insurance - Highlights
If you just want to be on the right side of the law and want to avail the mandatory Third Party Liability (TPL) cover, then choosing motor insurance is easy. If you are choosing motor insurance to cover maximum financial losses arising out of unfortunate events, then it requires meticulous research.
Understanding Motor Insurance
Motor insurance can be broken down into two verticals, Car Insurance and Two Wheeler Insurance. Whether you use your registered vehicle for personal, recreational or commercial purpose, as per law it must be insured.
TPL cover is mandatory and non-compliance leads to penalties. A comprehensive motor insurance cover includes TPL, other plans that cover financial losses due to accidents affecting you and add-ons. The entire Policy Life Cycle (PLC) comprising of purchasing, claiming and renewing an insurance policy can be executed via a simple online process.
Types of Motor Insurance
At your service
Easy to purchase
Make an informed choice
Third Part Liability
This is an Act Only insurance policy and is compulsory for all motor owners according to the Motor Vehicles Act. This policy does not cover financial losses pertaining to you or your vehicle; it is a cover for the third party. Here, the first party is the insured, second party is the insurance company and the third party is the third person who is affected by your car. The third person can raise a claim against you and your insurer regarding compensation for injury and property damage, in case of death the family of the deceased can raise a claim.
Own Damage Cover
Own damage cover safeguards you against financial losses regarding your vehicle. This can be claimed against accidents and theft. Although this is not mandatory it is suggested to opt for the cover to reduce out-of-pocket expenditure in case of unfortunate events like accident and theft. Damages caused by events such as vandalism, burglary, terrorist attack, riots, etc. are covered under this policy.
Personal Accident Cover
This cover comes in handy as it lends financial security in case of an accident leading to permanent disability. In case of death the policy holder's family will receive the monetary compensation.
Apart from these types of covers, one can also opt for specific add-ons to strengthen one's policy. With an additional premium, one can avail add-ons like Zero Depreciation Cover, Garage Cash, Roadside Assistance and others.
Points not covered under Motor Insurance
If the policyholder causes an accident under the influence of alcohol and drugs or is driving without a valid driving license, the losses won't be covered. Similarly, losses due to deliberate accidents, mechanical and electrical breakdown, consequential losses, wear and tear etc. shall not be compensated. Thus, it is suggested to read the policy document carefully and make an informed choice while choosing an auto insurance policy.
Factors to consider while choosing a motor insurance policy
While you are choosing a motor insurance policy, you are also choosing a motor insurance company. You might avail a policy that is tailor-made for you but in the end your claim should be honoured. Thus, choosing a car insurance company with a good claim settlement ratio is a must. One should also go through online reviews and speak to existing policyholders to verify the car insurance company's credentials.
Comprehensive or bare minimum
As mentioned earlier, TPL is mandatory however a comprehensive cover can protect you against financial losses. Thus, to opt for the bare minimum or for a comprehensive policy, is a choice that you have to make early on.
The insurance company's customer service mechanism needs to be checked. It must be noted if they provide detailed information regarding their products on their website, their efforts regarding consumer education through informative articles and 24 x 7 support on call, chat and email.
Your two-wheeler and car are ultimately going to go to a garage for healing. Therefore it is necessary to opt for an auto insurance policy from an insurance provider who has a vast network of garages. You can opt for your nearest garage and opt for a cashless settlement for a hassle-free claim.
Your motor's Insured Declared Value (IDV), the insurance company's underwriting policy, your cover and other factors like your vehicle's model, technical specifications, safety devices, insurance zones and depreciation are taken into account while determining the insurance premium of your vehicle.
The insurance premium is a crucial factor in choosing the right motor insurance policy; however, it shouldn't be the only factor. Above mentioned factors also must be given adequate weightage before zeroing-in on your insurance policy.
Policy Life Cycle (PLC)
Motor insurance policies need to be renewed periodically. Thus, they follow a life cycle comprising of Purchase, Claim and Renewal.
Insurance has gone digital and this has enabled easy purchasing of insurance policies. Whether you live in a metro or a Tier-II city, you can avail desired motor insurance via the insurance provider's website by filling basic details and making an online payment. You will receive your insurance document instantly in your email.
ICICI Lombard's Claim Process
Make sure you have the right documents in place to support your claim. In some cases an FIR filed with the police department might be essential. Apart from these necessary documents, one must also furnish truthful information in the claim form. Be it claim for TPL, Own damage, theft or personal accident, insurance companies follow a transparent claims procedure.
Your claim may not be honoured if it is not supported by the right documents or falls in the category that is not covered under your insurance policy. The general claims process followed by ICICI Lombard is as follows.
Car insurance needs to be renewed annually whereas you can insure your two-wheeler for a period of three years, provided your insurer offers that facility. Insurance companies often send reminders to its customers when their policy is about to expiry. You can renew it by simply logging on to the insurance provider's website, filling in your policy details and making the online payment.
ICICI Lombard customers can purchase a motor insurance policy, make a claim, track their claim and renew the insurance policy via a smartphone as well by downloading the IL Insure App.
Five Frequently Asked Questions
Does Motor Insurance only deal with accidents?
No. A comprehensive motor insurance policy also covers losses due to natural calamities like lightening, earthquake, flood, landslide etc. Detrimental manmade events like burglary, theft, riots and terrorist activity are also covered.
Do claims involve paying from the pocket first and then reimbursement?
Insurance companies support cashless claim settlement if the vehicle is sent to one of their network garages. In this case you don't have to pay the amount, your insurance company and the garage will settle it amongst them.
In case of a car crash, will I get a claim amount equivalent to the amount of a new car?
Under principle of indemnity, the insurance company honours the claim to get you back to the same financial position that existed before the damage occurred. You cannot better your existing position.
Does comprehensive insurance cover everything?
Comprehensive insurance means TPL and other insurance covers and add-ons that help you cover maximum losses. There are exceptions that are not covered under comprehensive insurance thus it is suggested to make an informed choice.
If someone else is driving my car and causes an accident, who is liable?
The owner of the vehicle is primarily liable regarding a claim.