Purchasing a vehicle is an exciting event in life! You choose the best one for you according to the brand you prefer, colour and configuration of its parts. Most people have an emotional connect with their vehicles and even a single scratch is a reason of grief to them. A Vehicle Insurance is the insurance policy which covers your vehicle against financial losses that you may face in case of physical damage to your vehicle. Most of the damage to a vehicle happens during accidents and hence insurances cover accidents too. A vehicle insurance also provides cover for theft and damage by natural disasters. All that you need to do is just to pay a certain amount as a premium to the insurance company to buy this (insurance) cover. In India, whether it is a vehicle for personal or commercial use it is mandatory by IRDA (Insurance Regulatory and Development Authority) for any vehicle running in Indian to be covered under an active insurance policy.
Different Types of Vehicle Insurance in India
- Car insurance
- Bike Insurance (two wheeler)
- Commercial Vehicle Insurance
Car Insurance provides cover for damages and theft to your car in cases of physical damage, theft and accidents. The protection provided is in the form of financial cover which the insurance company provides to your car when you buy an insurance policy. However, the third-party insurance is mandatory in India as per the law. The third party insurance basically protects the third party which is anyone apart from the insurer and the insured one. But it’s also better to be protected in the best possible way and hence car insurance is the one which protects your car completely.
Types of Car Insurance
- Third Party Insurance
This is the one which is mandatory by the Indian government for all the cars running on the Indian road. This insurance provides cover to any vehicle owner from the legal liabilities which is caused by the death or damage caused to a third party.
- Comprehensive Insurance
This is the insurance which a car owner takes of their own on basis of their requirements, preferences and all. One needs to pay premiums against his/her car insurance. The premium depends on the amount of cover, types of caver and the brand of car you own. Basically, a car insurance provides cover against theft, physical damages which are caused in accidents and some cover damages done in the natural calamities.
- Covers Provided by a Car Insurance
Accident Cover- This covers the insured car and person in case of injury or death due to mishaps. It secures your family’s future in case you suffer from some disability or death in an accident.
Theft- This provides you money worth your vehicle or a particular percentage of it depending on the policy you opt for in case of theft.
Cover for Natural Calamities- This covers your vehicle from natural disasters like earthquakes, floods, lightning, storms, cyclones, landslides, and tsunamis.
Documents Required for Claiming Auto Insurance in India
- RC copy of the vehicle
- Driving license copy
- FIR copy (in case of theft)
- Original estimate and policy copy
Two Wheeler Insurance
Two-wheelers are more prone to accidents as compared to four-wheelers and it’s a fact. When you will see the data it will be clear to you that most of the death recorded in case of road accidents are the bike riders. To ensure your bike/scooty protected against all the damages caused by accidents and natural calamities is getting a two-wheeler insured. Two-wheeler insurance policies come under the general insurance category. Although there is a basic cover which is provided by IRDA it is important to be covered by an additional cover. The cover is provided by the insurance company to whom you provide premium in favour of proving cover for your vehicle.
Types of Two- Wheeler Insurance
- Third party Insurance
This is mandatory for all the vehicle owners to have by IRDA. a third party insurance provides cover to the insured vehicle from legal liabilities to a third party that may arise from an accident. This insurance provides cover to third-party injuries, death, and property damage.
- Comprehensive insurance
This insurance provides cover to a two-wheeler from theft, natural disasters, and physical damage to the vehicle and from some man-made calamities too depending upon your preferred insurer. Apart from providing cover for all these, a special protection plan called Personal Accident cover can be offered to the vehicle owner as well with this insurance policy.
Commercial Insurance for the Vehicles
Commercial insurance is provided to those vehicles which are used for the commercial use such as trucks and HVCS. This insurance is also works same as that of other vehicle insurance where insurance provides cover to the commercial vehicles from theft, lost, damage from natural disaster, accidents. The premium which is payable for the insurance depends on the price of the vehicle. The cover provided depends on your insurance company with whom you have the insurance.
What kind of cover should one look for?
Insured Declared Value (IDV)
Insured Declared Value of the vehicle is determined by its age. The value is the amount for which the two-wheeler is insured. This amount (value) is estimated according to the selling price and the wear and tear in it, but most important is the age of the vehicle.
No Claim Bonus
Owners of the vehicles who haven’t claimed any two-Wheeler Insurance for a minimum of one year or more are eligible for some discount on their premium, the amount or percentage of discount depends on your insurance provider.
Things to Keep in Mind before You Claim Insurance for Your Vehicle
- Always maintain your vehicle in a roadworthy condition.
- Keep all the insurance-related documents with you.
- Always keep driving license with you while driving any vehicle whether car or bike. If anyone else is driving your vehicle to ensure they have a driving license.
- Make sure you never drink and drive as when an accident happens because of this the insurers are not going to pay you a single penny.
- In case an accident happens and a third party gets injured, ensure you take them to the hospital immediately.