Motor Insurance

About Motor Insurance

Motor insurance is a vehicle insurance policy that is mandatory for vehicles like trucks, cars, jeeps, bikes, scooters, etc. This policy offers coverage to the vehicle owner/driver against financial losses that may occur due to accidents or other kinds of damages.

Having valid motor insurance is compulsory in India to protect vehicle owners from potential financial risks. It is the best form of security that you can acquire to prevent significant expenses that result after an accident. The Government poses the compulsion for the safety of the individuals who travel via motor vehicles daily.

No one can deny that buying a vehicle is the second most expensive investment in a person’s life after home. Thus, protecting the investment against unforeseen events is crucial. Considering the hike in the vehicle repair charges and the risks involved in driving, an unfortunate accident can put a big hole in your pocket.

The yearly premiums that you pay for the motor insurance policy are meagre as compared to the advantages and protection the coverage will offer you in case of mishaps. Though there are many misconceptions regarding the policy, it will most certainly compensate you against the physical damage that arises under different circumstances.

Why Should You Buy a Vehicle Insurance Policy?

Believe it or not, driving in India has many associated risks. Millions of people own a driving license, and there is at least one vehicle in the household. Vehicles have become a crucial means of transportation, eliminating people’s need to travel via public transport. At the same time, we also know that an increased number of private vehicles also increases the risk of road accidents and rule-breaking. Accounting for such factors, it becomes critical to own a vehicle insurance policy. Besides that, let’s review the primary reasons to buy a comprehensive motor insurance policy.

Legal Requirement:

The first reason is, of course, to follow the laws and regulations of the Government. A person should oblige to buy a motor insurance policy with minimum coverage before taking the vehicle out on the road.

Third-party Damage Coverage:

With sufficient coverage, you can pay for the damages that occurred after a collision with a third-party. Without motor insurance, you’ll have to pay from your pocket, and an appropriate amount of coverage can take care of such expenses.

Security Against Theft:

Theft is one of the most significant threats on a vehicle. But with a vehicle insurance policy, you are protected against theft, vandalism, and all man-made harmful activities.

Damage Expense Coverage:

Paying outright for vehicle damage repairs will affect your financial condition. However, you can pay for such damages with the insurance even though the amount is hefty as long as you have enough coverage.

Insurance against Personal Injuries:

Not every vehicle owner is lucky to get out of accidents without suffering from injuries. The motor insurance policy will pay for all the minor and major injuries that might occur due to accidents.

Features of a Motor Insurance Policy

- A hassle-free way to acquire motor insurance online with minimal efforts.

- Avail comprehensive and third party insurance for complete protection.

- Renew the insurance online without having to waste your time travelling or filling hard copies of forms.

- Get proper coverage against natural and man-made calamities, including floods, earthquakes, theft, accidents, and vandalism.

- Include third-party liability coverage to compensate for the losses of other parties.

- Making cashless claims is also easier by providing sufficient evidence in case of accidents and theft.

- Most companies have a network of garages where you can get repair work done and ask for an evaluation of the vehicle’s condition after mishaps.

- No claim bonus feature allows a vehicle owner to file a claim at any time and even offers transference to other insurers.

- All motor insurance companies offer dedicated assistance and customer support service to the customers to keep them updated regarding the motor insurance policy and claim status.

- Add-on features are also available to allow customers to add coverage in the policy at any point.

Benefits of Buying Motor Insurance Online

Not long ago, people had to visit the stores to learn about insurance policies. But with the digitisation of all services, customers can now avail the benefits of buying motor insurance online. It is far better than the traditional method of getting insurance and also presents the simplest way to compare and finalise your decision.

Here are some key benefits of getting motor vehicle insurance online.

Easy Comparison:

Instead of visiting multiple stores, you can get quotes from as many motor insurance providers as possible and compare their services and rates without any interference. Most companies provide a detailed explanation for their plans, which further makes it possible for customers to contrast the features and benefits in a hassle-free manner.

Time-Saving

No more wasting time to go through the extensive paperwork! The vehicle insurance online services work by collecting fewer details and make the entire process less hectic. The information is processed smoothly, and issuance is provided without further delay.

Secure Transactions:

Offline purchase of motor insurance policies involves a lot of paperwork that contains confidential data. Online processing removes that risk, and transactions are done without documentation making it secure.

Multiple Payment Modes:

Most companies offer multiple payment modes to avail cashless transactions and premium payments for the insurance policy. You can even renew the policy online now.

Customisation Option:

Customers can opt for any coverage plan and get add-ons on the policy as you want. Moreover, you can learn all about the features and policies of different companies to figure out the best plan.

Transparency:

Unlike the conventional searches that were confusing and dealing with motor insurance agents is not necessary now. The agents used to leave out many specifications to convince potential buyers. But with vehicle insurance online covers, the process is transparent now

No Middleman:

As stated above, the motor insurance agents or third-parties won’t clarify every aspect, rule, and regulation of the policy. But the online process removes the middleman and eliminates the uncertainty from choosing the best plan.

Immediate Policy Issuance:

If you buy vehicle insurance online, the time taken for processing all documents is reduced to a few minutes. You can get the policy instantly, and the details you submit will be saved to the insurers

Convenient:

Whether you are out of the city or have a busy schedule, purchasing the desired motor insurance coverage can be done while you are sitting at home or office anytime.

Online Renewal:

One appreciable benefit of motor insurance online is that you will stay updated with the policy status and renew the plan on time before it expires.

Why Choose Bajaj Allianz Motor Insurance?

Types of Motor Insurance in India

Whether you are buying a private car, two-wheeler, or a commercial one, the types of motor insurance plans are broadly classified into two:

✓ Comprehensive Insurance Policy

With this policy, you can pay for damage to your vehicle as well as others, including motorbikes, private cars, scooters, and commercial vehicles.

✓ Third-party Insurance Policy

The third-party motor insurance policy is liability coverage that is uniformly applicable to all vehicles. As per the Motor Vehicles Act of 1988, third party car insurance and third party insurance for bike are compulsory for vehicles plying on Indian roads. Failure to comply with this rule would result in an individual to paying hefty fines according to the Motor Amendments Act, 2019.

✓ Pay As You Go

It is a new type of policy that allows the policyholders to pay by calculating the kilometres driven.

With these two motor insurance policies in consideration, the types of vehicle insurance are categorised as below.

Car Insurance :

The ideal choice to secure your private four-wheeler is getting car insurance. It is a contract that is drawn between the vehicle owner and the insurance company that covers both comprehensive policy and third-party liability. With this plan, you will get benefits like:

- Cashless claims

- Personal accident cover

- Loss/damage protection

- Unlimited liability for third-party injuries and death claims

Two Wheeler Insurance:

As the name suggests, two wheeler insurance or bike insurance is meant for scooters, bikes and other two wheelers. It is a type of vehicle insurance that will ensure a safe ride as two-wheelers have slightly more risks of personal injuries. The benefits included in the plan are:

- Comprehensive coverage

- 2/3 years of own damage motor insurance

- No claim bonus protection

- Inflation protection

Commercial Vehicle Insurance

The risks of damage to commercial vehicles are more than private vehicles. Hence, commercial vehicle insurance allows drivers to reduce the losses that incur in unfortunate events. It involves vehicles like tractors, cranes, taxies, goods carrying vehicles, passenger-carrying vehicles, etc. The benefits will include:

Unlimited liability coverage for injury and death claims Personal accident cover Offers loss and damage protection Indemnity for other’s property

You can purchase a suitable vehicle insurance policy that protects all kinds of vehicles in worst-case scenarios. Be it fire, burglary, vandalism, earthquake, flood, storms, or accidents; you can feel secure under all circumstances.

Motor Insurance Coverage

Updated Vehicle Insurance Covers After IRDAI’s Rule

Here are the changes that most significantly impact the policyholders:

- The Sum Insured for private cars up to three years will be based on road tax/registration, on-road vehicle price, and manufacturer accessories.

- The long-term policy expiry date and the third-party expiry date won’t match if you buy the standalone OD policy on different dates.

- Instead of basing the premiums on the IDV of the vehicle, geographical zone, car make, model, engine capacity, or others, it will depend on the individual’s driving habits.

- IRDAI has standardised the No Claim Bonus grid for all vehicle insurance policies with a renewal range of 20-50%.

- The Registration Certificate of vehicles on which theft and total loss/constructive total loss claims are made will be cancelled, and the documents will be surrendered.

- The compulsory deductibles are now standard and the waiver on these deductibles are also lifted for less ambiguity.

- A standard grid is proposed to calculate the depreciation value of the vehicle that will be settled during claim settlement.

- The passengers in the motor vehicles shall receive Rs. 25,000 medical expense cover in case of accidents, and it lies under the basic policy.

- A Named Driver Policy is adopted for private cars and two-wheelers to incorporate the driver’s details in the policy schedule.

- Electric Vehicles insurance premiums will get a 15% discount. The liberty to withdraw the long-term cover from one company and switch to another is a customer-friendly move. With so many positive changes, vehicle insurance in India is certainly easy to afford.

Parameters That Affect Vehicle Insurance Premium

Here are the parameters that will impact the vehicle insurance premiums on both the short-term and long haul.

Model/Make/Variant: The vehicle’s elemental composition, its type, cubic capacity of the engine, etc., have a direct effect on the motor insurance premium.

Age & Engine Type: Age is related to depreciation value and insured declared value that decreases the vehicle’s value over time. The engine type, i.e., petrol or diesel, affects the IDV, increasing the premium.

Demographics: Operating a car in the metro area is expensive due to the increased risk of accidents.

Cover: Getting comprehensive coverage will cost you more than standalone third-party liability coverage, which leaves you underinsured.

Add-Ons: Adding security features and cover like zero depreciation, passenger cover, etc., will increase the premium amount.

No Claim Bonus: You get a discount on policy premiums if you don’t raise a claim in the previous policy period.

Deductibles: You get a choice to opt for the voluntary deductible to minimise the motor insurance premiums by contributing a predetermined amount.

Anti-Theft Features: Installation of anti-theft devices certified by ARAI will help you fetch better discounts on motor insurance premiums.

Seller: To reduce the motor insurance premiums, buy a policy from the seller directly instead of going to an agent.

Digital Insurance: Digital-first plan comes with a variety of features at a lower price than the market for new purchase as well as renewal of the policy.

How to Use a Vehicle Insurance Calculator?

Most of the companies use a standard motor insurance calculator to determine the amount of premiums for the chosen coverage. Though different companies follow distinct criteria, we’ve kept the calculations straightforward and easy to understand. You can use our online calculator by providing us with some necessary information about your needs.

For a new car, you need to provide us with the following information to calculate the motor insurance premiums.

- Name of the vehicle manufacturer

- Car model

- Registration state of the car

- Manufacture year

- Car Owner details

For a used car, the vehicle insurance calculator needs slightly variable information given below:

- Type of car and fuel used

- Previous car motor insurance plan details

- Registration Number

- Change of Ownership documents (if applicable)

- History of Claims

With these details, we can calculate the best value of premiums for the insurance coverage you wish to buy.

Things to Consider While Buying Vehicle Insurance

During the purchase, you need to account for the following factors to get the best rates on comprehensive coverage.

✓Coverage: Explore whether you need comprehensive coverage or third-party liability coverage on an urgent basis. In our opinion, it is always better to go with comprehensive vehicle insurance online.

✓Add-Ons: Learn about the add-on features provided by the company and pick the additional coverage that is appropriate in your specific case.

✓Personal Accident Cover: Always account for whether the policy you are buying will cover you in case of personal accidents or not.

✓Claim Procedure: Go through the claim process to figure out how complex the task can be if, at some point, you need to file a claim.

✓Garages: All motor insurance providers have a network of garages where vehicle service and repairs are more affordable than local garages. You must consider them as the vehicle will need servicing more frequently as you travel.

✓Zero Depreciation Cover: A car’s value becomes almost half the moment it steps out of the showroom. To maintain the monetary value of the vehicle, you must opt for zero depreciation cover to combat the loss that will result after depreciation.

✓NCB: Find out whether the motor insurance providers offer a good No Claim Bonus and other benefits when you need to renew the policy after expiration. With each year that you spend without claiming the insurance, the discount for the next year’s plan progressively increases.

✓IDV: Only reliable insurers will offer you the best market value of the vehicle after deducting the depreciation amount. With this, you can get compensation called Sum Insured in case of theft or total destruction of your vehicle.

✓Policy Document: Never sign any documents without reading and reviewing the policy. There are many clauses in the document that might confuse you. So, always go through the document carefully and only then finalise the purchase.

✓Premiums: Ask for detailed specifications for how the company calculates the premiums for your motor insurance online. Be aware of the factors that play a role and clear your doubts without hesitation.

Documents Required to Buy Vehicle Insurance Online

The documents required to avail of motor insurance online are given below.

✓Proof of Identity (Passport/Driving License/Aadhaar/PAN Card/Government Issued Photo ID)

✓Proof of Address via Passport/DL/Bank or Post Office Passbook/Government Issued Photo ID

✓Recent Passport size photo

✓Driving License

✓Vehicle Registration Certificate

How to Apply for Vehicle Insurance Online

To make our services better for all our customers, we guide everyone carefully throughout the purchase and renewal of vehicle insurance in India.

Check Vehicle Insurance Status

One of the best reasons to buy motor insurance online is because you can also check the status online. The insurance documents will be accessible online, and you will also get alerts regarding the expiry date. You can find the start and end dates for the plan in the documents. With our digital-first service, you can log in using your credentials and check the status online. Besides that, you can also call us or drop an email to request the status details. The information will be sent to your number and email address shortly.

Avail Vehicle Insurance Online via Mobile App

Bajaj Allianz vehicle insurance renewal is also possible via Mobile app. We have a dedicated mobile application to buy motor insurance online that supports all the features of the website and a hassle-free way to communicate with the agents. Enter the app and fill the online renewal form to provide old policy details. Check the information in the form and make the final payment using a debit card or net banking. The renewed policy document will generate immediately. Save the document and take a printout whenever you have time.

Motor Insurance Offline Process

The conventional way to obtain and renew motor vehicle insurance is by visiting the branch with all the documents. The offline process is almost the same, except that you have to provide a physical copy of the documents. Schedule your visit to the nearest branch and buy the policy with suitable coverage by paying through cheque, debit card, or demand draft.

Why is Motor Insurance Mandatory in India?

It is the Motor Vehicle Act that specifies the rules and regulations regarding driving in India. We know that owning motor vehicle insurance is mandatory for all drivers and vehicle owners, considering the number of accidents that take place annually in the country.

What the Motor Vehicle Act specifies?

As per the Motor Vehicle Act, all vehicles that operate in public space must acquire sufficient motor vehicle coverage without any exception. The basic motor insurance policy must cover the minimum amount of third-party liability coverage to provide for other people involved in accidents or mishaps.

The primary reason to buy a motor vehicle insurance policy is to eliminate the expense that occurs after accidents. And don’t forget, India is a country where the population is rising unruly. As a result, the number of vehicles is also on the rise. To protect against the threats that arise on the road, vehicle insurance is the best solution.

After the amendment in 1988, it is essential to carry various provisions like driver’s license, vehicle registration document, permits, liability coverage, insurance cover, etc., on the road. And after recent changes, failure to fulfil these obligations will lead to fines and penalties worth INR 500 to 25,000 with additional penalties that involve ceasing your documents.

Importance of Motor Insurance Renewal

You might not believe it, but according to a survey, 60% of vehicles on roads in India are operating without valid insurance. And that’s because people don’t understand the importance of motor insurance renewal. Motor insurance India is a legal requirement for your safety as well as for others. The risks associated with motor vehicles are far greater than we can fathom. Hence, we ask you to renew your insurance policies before expiration.

No Rejection of Car Insurance Claims:

Renewing your policy the day before expiration will ensure that you don’t face any challenges during the claim process. In case any major accident takes place after policy lapse, you won’t have any backup to pay for repairs or deal with medical expenses.

Keep Insurance Premiums Moderate:

Your application for acquiring vehicle insurance can be rejected if the policy isn’t renewed under a specific period. And even if the application is accepted, you will have to pay a hefty premium. All of this can be avoided by renewing the insurance on-time.

Save with No Claim Bonus:

The No Claim Bonus is offered only to policyholders who take their insurance plans seriously. If you let the policy expire, the discount that is highly beneficial for vehicle owners will nullify, and you will have to pay big size insurance premiums.

Easy Inspection for Renewal:

Companies follow a standard procedure for vehicle insurance renewal, which involves inspection to assess your vehicle condition. With the assessment, you can determine how much insurance coverage you need to buy.

Quick & Hassle-Free Renewal:

Not renewing the policy results in rejection from insurers. You must get vehicle insurance renewal on time to prevent the hassle of looking for a new insurance provider. And trust us, searching for a provider that fits your budget after a lapse is very challenging.