| Insurance Basics |
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Insuring your vehicle isn’t just a great idea–it’s a legal requirement. Even if you drive your vehicle just a few kilometers a month, you should insure it to protect yourself and those around you. Your brand new vehicle and it gets hit by someone who mistakes a highway for space, and his vehicle for a space shuttle. Insurance can pay for your financial loss, at least. |
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Let AutoIndia.com and our partners help you competitive insurance rates and schemes today. Find the best rates and coverage for your vehicle through our partnerships with online insurance companies. Here you will be able to find and compare the best rates to fit your budget for vehicle insurance. |
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What is automobile insurance and do I need it? |
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Your vehicle may be your long cherished ‘Palace on wheels’ or one that can barely be called a four-wheeler but the very fact that it has to ply on rough and tough Indian roads, should be reason enough to insure it.Consider what your vehicle has to endure – potholes, open manholes, puddles, dirt roads, our traffic management system, poor pedestrian management, absence of footpaths for pedestrians, jaywalkers and an increasing number of accidents are few of the stark realities. |
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What is insured? |
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Any light motor vehicle used for social, domestic and pleasure purposes and for the insurer’s business. |
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Who can insure? |
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Individuals and corporate owners of the private vehicles and the financier of the vehicle having insurable interest in it. |
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Insured against what risks? |
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1(a) |
Loss or damage by accident, fire, lightning, self ignition, external explosion, burglary, housebreaking or theft, malicious act. |
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1(b) |
Riot and strike; terrorism; earthquake; flood, cyclone and inundation. |
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1(c) |
Whilst in transit by rail, road, air, elevator, lift. Perils under 1(b) can be deleted and a discount in premium availed. |
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2 |
Liability for third party injury/death, third party property and liability to paid driver. |
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3 |
On payment of appropriate additional premium, loss/damage to electrical/electronic accessories, PA cover for drivers, insured or any named person, unnamed passengers can also be taken. |
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4 |
Certain discounts in premium are also available. |
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Vehicle insurance under such unsafe conditions is a must not only to cover risks towards yourself and your own vehicle but also to cover the financial liability that may arise from an accident in which the other party is injured. |
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Consider the exorbitant cost of repairs that you would have to pay to the other party in case of an accident. |
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Besides if the accident involves hospitalisation too, the expenses can go through the roof. |
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It would be a great burden if all these costs had to be borne by you. But if your vehicle is insured the insurance company can be of great help. It can indemnify you against such losses and the financial liability that would have been solely on you is taken over by your insurance company. |
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What will policy pay and how much? |
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Own Damage |
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Actual amount spent for repairs/replacement subject to depreciation and sum insured as per survey report. |
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Garaging and towing charges – up to Rs 1000/ |
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Damage to tyres (when vehicle is also damaged) – 50 % of cost of replacement. |
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In case of total loss, market value at the time of loss or sum insured whichever is less. |
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Act Liability |
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Death or bodily injury to third parties – Unlimited |
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Death or bodily injury to any person carried in the car provided they are not insured employees and not carried for hire or reward – Unlimited |
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Liability to paid driver – As per W. C. Act |
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Third party property damage – up to Rs 6000/- |
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All costs and expenses incurred with company’s written consent |
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In case of death of the Insured/any person entitled to indemnity for a liability incurred under this Policy, his personal representative will be indemnified ,as in the case of insured, if he observes all conditions as the insured himself. |
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When will policy not pay? |
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Consequential loss; depreciation; wear and tear; mechanical and electrical breakdown; failure or breakage. |
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When vehicle is used outside the geographical area; when used contrary to limitation as to use; driven by a person other than the driver stated in driver’s clause. |
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War perils, nuclear perils and drunken driving. |
