Car Insurance not only provides financial protection to the car but also provides cover for injuries to driver, passengers or pedestrians, and their property. It pays for damages to your car due to accidents, vandalism, theft, fire, man-made/ natural disasters, and third-party liability. Considering the exorbitant repair costs these days even a minor damage can cost a fortune. The Motor Vehicles Act also requires every vehicle on the road to at least have a valid third-party liability cover, i.e. cover that pays for bodily injury, loss of life and damage to property of a third person that was caused by an accident with your car.
The IRDAI revises premium every year, considering the ratio of claims made and loss for providers. Because of this, third party insurance rates for cars and bikes have become costly from April 1st, with the insurance rate rising up to 40%.
A basic comprehensive car insurance includes damage to your car, loss and theft of vehicle as well as third party cover. However, at additional cost in the insurance premium, the car owners can avail some extraordinary coverage options. The popular add-ons are:
The add-on covers the depreciation on the parts of the car. If you have this add-on the full amount of the parts of the car replaced is paid without deducting for depreciation. Without the add-on following depreciation will be applied to pay claim:
|For all the Nylon, Plastic and Rubber parts like tubes and tyres as well as batteries||50%|
|For all the components made of fiberglass||30%|
|Parts made of glass like windshield, etc.||NIL|
The rest of the vehicle, including all the wooden parts as well are:
|Age of Vehicle||% of Depreciation|
|Vehicle less than 6 months||NIL|
|Vehicle more than 6 months but less than 1 year||5%|
|Vehicle more than 1 year but less than 2 years||10%|
|Vehicle more than 2 year but less than 3 years||15%|
|Vehicle more than 3 year but less than 4 years||25%|
|Vehicle more than 4 year but less than 5 years||35%|
|Vehicle more than 5 year but less than 10 years||40%|
|Vehicle more than 10 years||50%|
|Age of The Vehicle||% Of Depreciation For Fixing IDV of The Vehicle|
|Vehicle less than 6 months||5%|
|Vehicle more than 6 months but less than 1 year||15%|
|Vehicle more than 1 year but less than 2 years||20%|
|Vehicle more than 2 year but less than 3 years||30%|
|Vehicle more than 3 year but less than 4 years||40%|
|Vehicle more than 4 year but less than 5 years||50%|
Under this additional cover, the policyholder is assured of a round-the-clock assistance provided by the insurance company if the car breaks down in the middle of the road and needs assistance in being transported to the nearest garage.
The engine protect cover covers the damages suffered by the engine of the car due to waterlogging. If the car is submerged in water and the policyholder tries to start the car, water might seep into the engine and damage it. Such damages are covered under the add-on.
If there is no claim in the car insurance policy, the policyholder earns a no claim bonus (NCB). This bonus provides a discount in the renewal premium. However, a single instance of claim wipes out the entire NCB and no discount is allowed in the renewal premium. This add-on protects the NCB even in case of a claim.
When the car is repaired after an accident, various consumables are used in the repair like engine oil, lubricants, nuts, bolts, etc. The add-on, when opted, ensures coverage for consumables too which are not covered in a normal policy claim.
Under this cover, a replacement key is arranged free of cost if the policyholder loses the original key.
Under this add-on, if personal belongings are lost from the cover, the cost of the loss suffered is covered
Under this cover, the invoice or full value of the car is paid as claim if the car is stolen or is damaged beyond repairs. A normal policy without the add-on will pay a maximum claim of the insured declared value (IDV) which is calculated after depreciation.
Under this add-on, personal accident cover is available for unnamed passengers travelling in the car with the owner/driver. A lump sum benefit is paid in case of accidental death and disablements faced by such passengers.
Under this add-on, the medical expenses caused due to an accident towards the owner driver would be covered.
No claim bonus (NCB) is the discount in the premium charged to the policy holder when no claim has been made during the policy term. It keeps increasing from 20% up to 50%, for every claim free year.
The no claim bonus is 20% for the first claim-free year. Thereafter, it increases every consecutive claim-free year. The available bonus rates are as follows –
|No claims in the first policy year||20%|
|No claims in two successive policy years||25%|
|No claims in three successive policy years||35%|
|No claims in four successive policy years||45%|
|No claims in five successive policy years||50%|
Your NCB is applicable even if you change your insurer, or buy a new car. It’s a great incentive to reward safe drivers. If you make a claim, you will lose your entire NCB in next policy term. Your NCB will be mentioned on your policy.
A car insurance policy is not only legally mandatory, it is beneficial too. Here’s how –
The best car insurance policy can be chosen by comparing different plans available in the market. Comparing is a must because of the benefits it provides. By comparing individuals can buy a policy which has the highest possible IDV, encompasses the most coverage features and charges the lowest premium. Thus, comparing allows individuals to buy the best car insurance plan.
Turtlemint has a tie-up with leading car insurance companies. Individuals can find and compare different car insurance plans on Turtlemint’s website and then buy a plan which is the best.
To compare, the following parameters should be judged –
Our insurance partners have provided us the best possible insurance rates. We pass on the highest possible discounts to you always. It unlikely you will find a better rate elsewhere. If you find let us know. We are ready for the challenge!
Turtlemint helps you with all of the above decisions. In addition, we offer free claims support all our customers.
In the event of an own damage claim, that is, where your own vehicle is damaged due to an accident, vandalism or natural calamity, you must immediately inform insurance company and police, wherever required.
Insurance company will depute a surveyor to assess the loss, and car will be towed, if required, to a workshop.
A claim report is prepared by the surveyor based on the assessment done. The report is submitted to the insurance company along with the claim form and related documents like –
Once the claim is approved, repairs start. The repairs are completed and delivered to the policyholder. The claim is settled by the company with the garage and the car is delivered to the policyholder.
If your policy provides for cashless service, which means you do not have to pay out of your pocket for covered damages, the insurance company will pay the workshop directly. You will need pay your share of the claim – deductibles, etc – as informed by the insurer.
As a Turtlemint customer, you can simply call us to report a claim or any issue with payment, and we will take care of the rest!
If your policy is not offering you cashless claims, you can choose reimbursement claims. Under reimbursement claims the policyholder bears the repair costs himself and then gets them reimbursed from the insurance company. If the car is repaired at any non-preferred garage, reimbursement claims occur
Once your claim is accepted, you will be paid the approved claim amount minus certain deductions which you will have to pay out from your pocket:
Standard or Voluntary Deductible: this is a fixed amount that you have to bear before the policy comes into force. For private cars, this amount currently is Rs. 1,000.
Depreciation: Standard insurance pays for the actual cash value of your damaged or destroyed vehicle part. However, since the part was already in use, its value will be less than or depreciated in comparison to a new replacement part. This will be 30% for fibre components and 50% for plastics and rubber. If you do not want to bear the depreciation cost, you can buy zero depreciation add-on which is available typically for cars not older than 3 years.
If your vehicle is stolen, police and the insurance company must be informed immediately. In addition you must keep the transport department also informed. To make a claim, the vehicle needs to be covered under the comprehensive insurance policy.
You will need to submit the police First Information Report (FIR), letter intimating RTO along with requisite claim form duly filled in, to the insurance company. Your claim will be paid after police give the final “non-traceable” report.
The amount you will receive for a theft claim is the Insured Declared Value (IDV) mentioned in the policy. You will need to sign the RC in favour of the insurance company and complete other handover formalities.
A third party claim, is where your vehicle was involved, in causing bodily injury, death or damage to property. It is important to ensure that the accident is reported immediately to the police as well as to the insurance company. On the other hand, if you are a victim, that is, if somebody else’s vehicle was involved, you must obtain the insurance details of that vehicle and make an intimation to the insurer of that vehicle.
The limit for property damage liability is capped at Rs. 7.5 lakhs. Any amount above this will have to be borne by the policyholder. There is no limit for bodily injury or death claim. The amount of liability is decided by a special court, the Motor Accident Claims Tribunal, based on factors such expenses for medical treatment of the injured, and loss of income in case of death.
It’s simple, just call us on our toll-free number about a claim you want to report, dispute or discuss. Our expert claims team will help you through the entire process. Our team will also work with the insurance companies directly to advance your case, and proactively inform you about the progress.
With our experience of having processed thousands of cases successfully, you can rest assured that you will get the best service and outcome.
You can also visit the link https://www.turtlemint.com/raise-claim and raisea claim with Turtlemint easily
There is no limit to the number of add-ons one can buy under a car insurance plan. Each add-on would attract an additional premium and the policyholder can choose as many add-ons he requires.
Car insurance plans are offered for a term of one year. After each year the policy should be renewed.
Yes, insurance companies allow a grace period for renewing the car insurance plan. The period offered depends on the policy. Coverage would not be allowed during the grace period. However, the accumulated no claim bonus would be applicable and the policy can be renewed without inspections if the renewal is done in the grace period.
A comprehensive car insurance policy is the best choice because it covers damages suffered by the car too. Since such damages also incur huge costs, a comprehensive cover is best. Moreover, add-ons should be selected for making the cover as comprehensive as possible.
There are various discounts which are available in car insurance plans. These include discounts for installing safety devices, the accumulated no claim bonus, discount for choosing a voluntary deductible and discount for becoming a member of an approved automobile association.
There is also a de-tariff discount that is provided by companies but varies from company to company, location to location and from vehicle to vehicle. It depends on the vehicle’s incurred claim as per the company’s experience and the same can change due to a change in their claim experience!
After you provide these details, the calculator would calculate the premiums payable for the policy.
Car insurance plans are offered as one year contracts. Once the stipulated tenure is over, you have to renew the policy. If the policy is not renewed within the due date, i.e. the date on which the existing policy is expiring, the policy is said to expire. An expired car insurance policy is bad because of the following reasons -
To renew your car insurance policy you should follow the below-mentioned steps -
Moreover, if you are renewing within the specified duration, you can use the accumulated no claim bonus of your previous policy to claim a premium discount in the renewed plan.
IDV stands for Insured Declared Value. it represents the actual sum insured of the car insurance policy. IDV is calculated by deducting the age based depreciation from the market value of the car. The market value of the car would exclude registration and insurance costs for IDV calculations. The rate of depreciation would depend on the age of the car and would be as follows -
|Age of the car||Applicable depreciation|
|Less than 6 months||5%|
|More than 6 months but less than a year||15%|
|More than a year but less than 2 years||20%|
|More than 2 years but less than 3 years||30%|
|More than 3 years but less than 4 years||40%|
|More than 4 years but less than 5 years||50%|
If the car is more than 5 years old, the IDV is mutually decided between the insurance company and the policyholder.
The IDV is paid as claim if the car is damaged beyond repairs or if the car is stolen.
Own damage premium is the amount of premium paid for covering damages to the car caused by events outside the control of the policyholder like earthquakes, accidents, etc.
At fault represents the degree of the policyholder’s contribution to the car collision.
A claims adjuster is an individual who investigates and settles the car insurance claim.
To buy the policy individuals would have to submit the RC book of the car, invoice of the new car or existing policy document for an old car, No claim bonus certificate of the existing policy if required.
If the policy has expired, the Insured Declared Value would be calculated after the inspection of the car has been done by the insurance company. Based on the IDV, the premium would be calculated. Moreover, if the policy is renewed within 90 days of expiry of the old policy, the no claim bonus of the old policy would be applied on the premium and the premium would be discounted.
No, you can buy online car insurance plans for used cars as well as for old cars when you renew the policy.
For online renewals you can visit the insurance company’s website or compare other plans on insurance aggregator websites before renewing. Once the plan is shortlisted, the details of the car should be provided and the premium should be paid online. The policy would then be renewed instantly.
No, car insurance premiums do not depend on the time when the comparison took place. It depends on the details of the car. So, the premium would be same whenever the policies are compared.
Yes, Turtlemint offers you the facility to save your car insurance quotes for future reference. You can generate the quotes online and then save them for later use.
There is no guarantee of cheaper premium rates for continuing with your old insurance company. Insurance companies do not give any loyalty discounts on car insurance premiums if you continue your coverage with them. So, you should compare the available plans to get the lowest premium rate.
Yes, certain changes can be made in your car insurance policy. Allowed changes include the following -
For all the changes the insurance company should be contacted with a proof of change. Additional premiums might be required in some cases which should be paid before the change is endorsed in the insurance policy.
You can claim the roadside assistance cover for a maximum of four times during the entire policy period.
To cancel the policy you would have to submit a letter requesting cancellation, proof of an alternate policy to substitute the policy being cancelled, original policy document, proof of sale of the vehicle if it has been sold, acknowledgement letter from the RTO about cancellation of the policy, a NOC certificate from the institution which has financed the car.
ARAI stands for Automotive Research Association of India. Anti-theft devices which have been approved by the ARAI and installed in the car would earn a premium discount.
Any changes made in the car insurance policy is done through an endorsement in the original policy document. Endorsement is, therefore, a written proof of changes done to the policy.
Premium bearing endorsement depicts that the change which is being made in the policy has attracted an additional premium.
CTL stands for Constructive Total Loss of the car. A loss if declared to be a CTL if the estimated repair costs exceed the IDV of the policy. In such cases, the IDV is paid as claim.
Yes, if you are selling your car to another individual you can also transfer the insurance policy of the car to the buyer. While the policy ownership would change, the no claim bonus would remain with you and you can use the bonus to claim a premium discount in another car insurance policy which you buy.
Period of policy depicts the total duration for which the car insurance policy remains effective on a particular car.
Before the final policy document is issued by the insurance company, a cover note is issued containing the details of the policy. The cover note is valid for 60 days after it is issued and serves as a proof of insurance till the final policy is issued.
In case of CTL, the value for which the damaged vehicle can be sold for salvage is called salvage value of the vehicle. This value is deducted from the IDV before the claim is settled.