MOTOR INSURANCE - Policyicon

MOTOR INSURANCE

Motor Insurance is a contract you and your insurer enter, to protect you from financial losses caused by unforeseeable circumstances like accidents, theft, and even natural calamities. The Government of India mandates all vehicle owners to have a third-party insurance policy. This policy covers the damages caused to life and property of individuals, other than you, affected by an accident your car unfortunately becomes a part of. The other most common form of insurance is Comprehensive Car Insurance. It helps you cover your vehicle against damages caused due to road accidents, fire, natural calamities, social unrest and theft along with third party insurance.

It is important for you to choose the right insurance policy. When searching for vehicle insurance online, make sure you completely understand the nature and terms & conditions of the policy. POLICY ICON helps you navigate in the journey of buying the right policy for your vehicle with a seamless process not just at the time of purchase but also when there is a claim and you need this assistance the most.

WHO SHOULD BUY

Individuals who own a Motor vehicle viz. Private Car, Two-Wheeler, Commercial Vehicle, Taxi, Truck, School/Staff bus or other Misc. vehicles etc should compulsorily buy Motor Insurance.
A vehicle can also be owned by a Partnership firm or Private Limited company, where the onus of buying Motor Insurance vests with the organisation.

TYPES OF MOTOR INSURANCE

Insurance companies across the country offer two types of motor insurance covers -

a) Liability Only Policy - Third Party liability insurance is mandatory for all registered vehicles in India. If a customer chooses a Liability Only Policy, then any damages to the vehicle will not be covered by the insurer.

b) A Comprehensive Package Policy – Provides cover for damages to the vehicle as well as Third-Party Liability coverage A Package Policy would offer a car owner wider coverage for their insured vehicles.

CLASSIFICATION OF MOTOR POLICIES

• Private Car – covers any privately owned sedan or SUV vehicle with a white number plate
• Two-Wheeler - covers all types of Bikes and scooters with a white number plate
• Goods Carrying Vehicles – Covers vehicles like Light Carrying Vehicles, Heavy Goods carrying vehicles, Cranes etc registered with a yellow number plate and used for commercial purposes.
• Passenger Carrying Vehicles – Taxi and buses carrying passengers for fare are covered here.
• Construction Equipment – Backhoe loader, road rollers like equipment used by the contractors can be covered in Miscellaneous Section of the Motor Insurance

ADD-ON COVERS

Add-ons provide multi fold benefits to the vehicle owner by providing additional protection in various circumstances. While insurance is thought as a recurring annual expenditure by some, sometimes having basic vehicle insurance is not sufficient and various add-ons therefore are increasingly becoming popular.

Motor Insurance Add-on provides additional covers on payment of additional nominal premium, which otherwise are not covered.

Types of Add-ons covers:

• ZERO DEPRECIATION - Under motor policy flat 50% depreciation is charged for replacement of rubber, nylon/ plastic parts, tyres, tubes, batteries and air bags and age wise depreciation from 5% to 50% on all other parts in case of any replacement of parts consequent to an accident or other peril.
A zero-depreciation cover ensures that one receives full claim value for parts that are replaced after an accident without any deduction for depreciation.
Generally, maximum two claims are allowed under zero depreciation policy for most companies, in a year.

• ENGINE COVER - In case water enters the engine of the vehicle and engine gets ceased or oil seal at the bottom of the vehicle is broken due to some impact and the engine oil gets starts flowing out, and if it goes unnoticed the engine of a running vehicle will get ceased, such damages are not covered under a normal insurance policy, hence the need for separate engine cover.

This Add-on pays for repair and replacement expenses or damage to Internal parts of the engine, Gear Box, Transmission or Differential Assembly provided loss or damage is due to ingress of water in the engine or leakage of lubricating oil from engine / respective assembly.

• CONSUMABLES - Consumables for the purpose of this cover shall include engine oil, gear box oil, lubricants, nut & bolt, screw, distilled water, grease, oil filter, bearing, washers, clip, break oil, air conditioner gas and items of similar nature excluding fuel.

• RETURN TO INVOICE - In cases of Total Loss* or Theft of vehicle the maximum amount payable by the insurance company is limited by the current IDV i.e., the depreciated value of the vehicle. In such a case this Return to Invoice policy will pay the entire amount that was paid originally by the policyholder at the time of purchasing the vehicle i.e., the Ex-showroom price* + RTO + Road Tax.

Total Loss refers to a situation where cost of repairs would exceed 75% of the IDV (Insured’s declared value)
Ex-showroom price refers to the lower of the Ex-showroom price as at the time of purchasing the vehicle or current Ex-showroom price of the same model

• LOSS OF KEYS - Covers the cost to replace vehicle keys if the same are lost/stolen and locks and keys both if the vehicle is broken into Break-in Protection – cover will reimburse the cost of replacing locks and keys if Vehicle is broken into. Covered costs include the labour cost for replacing the lock.

• LOSS OF PERSONAL BELONGINGS - This cover will pay for the loss or damage to insured and insured’s Family member’s personal belongings while they are in the vehicle at the time of loss or damage to the vehicle.
Any claim under this section will be admissible only when there is a valid and admissible claim in respect of the vehicle arising out of the same accident and the claim is reported to the nearest police station

• ROAD SIDE ASSISTANCE – This Add-on cover enables the help for basic services in case of an emergency while on the road. Users opting for such add-on policies can avail fuel assistance, taxi and accommodation benefits while staying in a remote location.

• TYRE COVER - Covers expenses for repair and/or replacement, as may be necessitated arising out of accidental loss or damage to tyres and tubes.
The cover will offer protection for the various repair and/or replacement related expenses of the tyres. In case any accidental damage, cut or loss to the tyres, this add-on cover will provide to cover for the related costs as per the policy terms.

Whenever replacement of tyre is allowed it will be of the same make and specification and if tyre of similar specification is not available and replaced tyre is superior to damaged tyre then company will not be liable for betterment charges.