Benefits of Car Insurance Policy

Zero Depreciation is an add-on car insurance cover which offers full settlement without any write-off for depreciation as opposed to normal car insurance. This type of coverage offers a full claim policy for a premium amount which is relatively higher than a normal car insurance policy. This type of coverage is usually opted for mid and top-segment expensive and luxury cars; reason being that most people prefer a superior cover to obtain optimum benefits.

Car Insurance providers usually have their own network of garages where an insured car is usually repaired. In a Cashless Garage Network the expenses of an insured car are directly handled by the insurance provider. The owner then remains free of any hassles that may arise regarding the settlement of expenses for the car damage. The car owner is only required to pay the difference amount as confirmed by the claims manager to the garage. However, the amount of Depreciation as per the rate prescribed under the Indian Motor Tariff and Compulsory Deductions under the policy need to be borne by the Insured. The key benefit of having a Cashless Garage Network (Cashless Motor Insurance) is reducing the stress of the car owner and reducing the many formalities that a claim process involves. ICICI Lombard has a network of 3500+ Cashless Garages all over India.

No Claim Bonus, i.e. 'NCB' is a discount that is given by the insurer to the policy holder for making no claims. It is also a good way to progressively reduce your insurance premium. NCB is available for those people who have not claimed insurance during the preceding year of cover. NCB is also transferable to a new vehicle if the person decides to change his vehicle at any given time in the future. This can reduce the renewal premium depending upon the number of claim free years.

Third Party Liability Insurance as the name suggests is insurance for any claims relating to a ‘third party’. It compensates for any damage done to the third party as a result of the first party. A first party refers to the insured person/s who buys the insurance policy; while the second party refers to the insurance company which agrees to compensate the third party in case the insured person causes any damage to the third party. Third Party Insurance basically covers for: personal injury- liability for accidental damage to third party i.e. you are insured against death/ injury (caused by your vehicle) to pedestrians, occupants of other vehicles, outsiders other than passengers and any damage caused to the property other than property belonging to the insured or held in trust or in the custody or control of the insured.

Liability is covered for an unlimited amount in respect to injury or death. Any damage to third party property is covered up to Rs 7.5 Lakhs in case of Private Car. This cover is a part of the comprehensive car insurance policy offered by ICICI Lombard

Whether it is a brand new car or a ‘used or second hand’ car, insuring your vehicle is necessary. Getting insurance for second hand/used cars are substantially cheaper than new ones. As the value of second hand cars is substantially lower than that of a new one, the premium that needs to be paid for the insurance will also be cheaper.

Personal Accident Insurance covers death or disability caused due an accident. The motor insurance policy essentially has a Personal Accident cover for the owner-driver, as per the tariff, for which no extra premium is to be paid. For a person other than the owner and driver, the Personal Accident cover has to be purchased separately by paying an additional premium. The amount paid as compensation depends upon the extent of cover opted for.

Voluntary deductible is the amount you opt for higher deductible over and above the compulsive deductible in the event of the claim. (Final Claim amount will be after deduction of depreciation on parts, VD and compulsory deductible as per IMT)

In the event of the Insured’s vehicle being immobilized or rendered unfit for the purpose of driving on the road, the Company would provide appropriate towing services to the nearest garage (within a radius of 50 kms from the location of the breakdown/accident)

Break-In Insurance occurs when the policy lapses due to non-renewal of the insurance on time. ICICI Lombard offers you ‘Break-in Insurance’ at an affordable price. Not only this, we make your task simpler by providing a digitally signed policy whereby you can immediately purchase your ‘Break-in Insurance’ policy. We also provide doorstep surveyor facility to cover your car with a Break-in Insurance. If car insurance is renewed within 90 days of car insurance expiry, then the NCB remains intact.

Natural calamities such as flooding, earthquake, landslide, lightning, heavy storms, etc. are inevitable and could leave a serious financial blow and cause damage to your vehicle. Man-Made calamities include all those accidents as a result of negligence or deliberate malicious acts. These include acts of terror, accidents, theft, etc. It is easier for a car to get damaged through such accidents.

So how does one protect or rather insure one’s vehicle in such circumstances?

Both natural and man-made calamities can be tackled by insuring the vehicle with a comprehensive motor insurance policy. A motor insurance policy provides protection against any type of natural or man-made calamity and also ensures protection against any personal accident costs, legal liability and even third party damages.

Car Insurance is mandatory in India by law under the Indian Motor Act. It is also really important to have an insurance as driving can be hazardous and have fatal consequences. Even if you are a cautious driver someone else's irresponsible driving might cause an accident.

Choosing a right insurance plan for your car will surely go a long way in preventing sudden financial loss in case of accidents. A comprehensive motor insurance plan ensures safety of your vehicle, and also of passengers, pedestrians and people's property.