This is the same as when RBI increases the CRR for Indian banks which results in lower profits for them. Car and Truck premiums account for 43% of the premiums and are a big loss marking area. The claim ratio is estimated at 153 per cent. That means for every Rs 100 premium collected, the claims paid are Rs 153.

Read on how to buy the Best Car Insurance in India.

General insurance industry faces Rs 10,000 cr hit in FY12

All the 24 general insurers in the country are staring at a loss of Rs 10,000 crore (Rs 100 billion) in the current financial year as Irda is set to increase the provisioning norms for the commercial third-party motor pool to 163-213 per cent from present 153 per cent.

The provisioning will be 213 per cent for the current year, 183 per cent for 2010-11 and 163 per cent for 2009-10.Provisioning for the year 2008-09 will be 153 per cent.”An increase of one per cent in provisioning means an additional capital or loss of around Rs 100-150 crore (Rs 1-1.5 billion).Last month, Irda decided to do away with the existing commercial third-party motor pool and said it would be dismantled on a clean-cut basis.

Pros of Third Party Car Insurance

1)      The owner of the vehicle is rest assured that damages that  come under the purview of the third party liability cover is paid by the insurer in case of some untoward incident.

2)      In case of bodily injury or death of a third party or a passenger of a public service vehicle the amount paid is the amount incurred (without limit)

3)      If there is damage to any property of the third party a limit of Rs 6000 is paid.

4)      It also covers the personal accident of owner

Cons of Third Party Car Insurance

Though the primary of objective of the getting the vehicle insured with a third party cover is met, yet obtaining only a third party liability has its own limitations

1) This doesn’t cover the damages of the car and the accessories

2) It doesn’t cover the losses out of burglaries, theft or situations like riots, environmental calamities like earthquake, hurricanes, storms, floods etc.

The results have been very bad for jobs in the insurance sector with employment in the private sector taking a massive hit.During 2010-11, one out of four people employed in the private life insurance sector lost their jobs in the country. For instance, total number of people employed by the top five life insurance companies as on March 31,  2011 stood at 60,215 as against 81,507 in the corresponding period last year. Also, these life insurers closed down more than 900 branches, and more than 1,74,000 agents suddenly found themselves out of a job.

1) Reforms of ULIPS by IRDA increasing the lock in to 5 years and prevention of undue commissions and charges

2) Pension Plan Reforms

3) Very Low Margins considered to be one of worst in the world

4) Massive Losses on Third Party Insurance for Vehicles where rates are regulated by IRDA.Big provisioning has hit the profitability.

5) Policy Paralysis where FDI is capped at 26% and no other reforms are being taken

But note like other things this too should too pass as more reforms are introduced.The archaic laws will also go and lead in to faster growth.The increased competition will decrease with players going out and margins should increase as well.If the Indian growth story works out , then the Insurance Story should work out as well.

Turbulent times for a sunrise sector

The timing could not have been worse. With the Parliamentary Standing committee rejecting the proposed amendments in the Insurance Bill, the insurance sector faces a very serious reality check regarding its future. Whether it concerns the new norms on unit-linked policies for life insurers or third party motor pool losses for the non-life sector, the fact is the India insurance story is desperately seeking some life-giving sustenance. Crippled with regulatory issues, low margins and lack of a policy road map, the industry today is reeling from negative growth and job losses. This has meant a further delay in break-even periods and lower returns for promoters.

a)    Third party Liability Cover

b)    Comprehensive Cover

Let’s look at the pros and cons of each of these policies in detail.

 Third party liability – A Brief Introduction

As per the Motor Vehicle Act, any motor vehicle plying in  public places should have at least a third party liability cover and it is mandatory in India. Third party Liability is nothing but the coverage extended to the losses caused to  the third party. The damages can be of bodily injury or death or damage to the property.

Advantages of Third party liability :

1)      The owner of the vehicle is rest assured that damages that  come under the purview of the third party liability cover is paid by the insurer in case of some untoward incident.

2)      In case of bodily injury or death of a third party or a passenger of a public service vehicle the amount paid is the amount incurred (without limit)

3)      If there is damage to any property of the third party a limit of Rs 6000 is paid.

4)      It also covers the personal accident of owner- driver in case of bodily injury or death subject to

a)    Owner – driver is the registered owner of the vehicle insured

b)   Owner – driver is the insured named in the policy

c)    He holds an effective driving licence.

With all the above conditions being satisfied the capital sum insured is Rs 2 lacs in case of private cars and commercial vehicles.

Disadvantages of Third Party Liability Cover

Though the primary of objective of the getting the vehicle insured with a third party cover is met, yet obtaining only a third party liability has its own limitations

1) This doesn’t cover the damages of the car and the accessories

2) It doesn’t cover the losses out of burglaries, theft or situations like riots, environmental calamities like earthquake, hurricanes, storms, floods etc.

Summary

Third party liability is mandatory requirement for any motor vehicle.Post the detariffing of the motor insurance all the Insurers (Public and Private) have to accept the requests from the customer if they want to buy either a  third party liability cover or the comprehensive. Prior to that some of the Private Insurers were encouraging only comprehensive coverage. The premium is decided by the regulating authority and will be uniform across the insurance companies for a particular model and make. Hence the vehicle owners can get their vehicle insured with any of the insurers of their choice.The third party liability gives the vehicle owner a peace of mind and also saves from financial loss which otherwise he/she needs to compensate if there is no insurance.

Advantages of “comprehensive coverage”

1)The limitations of the taking a only a third party liability cover can be overcome by buying a comprehensive coverage as this covers not only damages to the third parties but also against the own damage.

2) Under this policy the insured is saved against the loss or damage to the vehicle and its accessories subject to deduction for depreciation as the rates mentioned below

a) rubber/nylon/plastic parts, tyres and tubes, batteries and air bags a 50% depreciation is taken into account.

b) for fibre glass components – 30%

3) If there are additional fittings like electrical/ electronic which are not listed in the manufacturer’s list they can also be covered with additional premium.

4) Usage of CNG/LPG can also be covered if they are duly certified by the concerned RTA.

5) There are certain discounts which can be availed in the comprehensive policy such as

a) If there is a membership from recognized automobile association.

b) There is a No Claim Discount Bonus option which ranges from 20% to 50% if there is no claim after one year of claim free insurance (20%) and 50% if there is no claim after five years of insurance.

Disadvantages of comprehensive coverage

1)   Comprehensive coverage is costlier than the third party cover and varies with each insurer.

2)   The customer has to do a little bit of research online before taking a comprehensive cover to figure out which company will be cheaper.

3)   The regulatory authority has given the liberty to the insurers to charge the premiums in this case based on their underwriting experience and risk assessment.

 Summary:

Vehicle owners have to choose between only a third party cover or the comprehensive cover (which includes third party and also the own damage) as per their requirement. Third party is mandated by law where as comprehensive cover is on the choice of the customer. If one needs to go for the comprehensive cover then a comparison of premiums charged by the insurers through online and other services extended by them ( ex garages network, online policy generation and customer support) etc is to be kept in mind and then insurance company can be opted for.

Also Read about How Age Affects Car Insurance Premiums

 

1)    Insured Declared Value ( IDV) of the vehicle

2)    Cubic Capacity

3)    Geographical zones

4)    Age of the vehicle

How Insured Declared Value( IDV) is affected by the Age of the Vehicle

IDV is the ” Sum Insured” which is fixed at the commencement of the policy and is fixed based on the basis of

a)    Manufacturer’s listed Selling Price of the Vehicle

b)    Model of the vehicle insured at the commencement of insurance or renewal.

This is adjusted for depreciation which depends on the age of the vehicle

The percentage of depreciation is 5% to 50% (5% if it is not exceeding 6 months and 50% if it is exceeding 4 years but not exceeding 5 years)

IDV of the vehicles beyond 5 years of age and of the obsolete models (the models which the manufacturer has discontinued to manufacture) is determined on the basis of an understanding between the insurer and the insured.

 Age of the vehicle

Age of the vehicle also plays an important part in determining the premium and is divided in three segments.

1)    Not exceeding 5 years

2)    Exceeding 5 years but not 10 years

3)    Exceeding 10 years

The rates are calculated differently based on the age of the vehicle and is applied on IDV as a percentage.The rates are higher for higher age .

 For Taxis

Age of the vehicle is further classified as

1)    Upto 5 years

2)    Between 5 and 7 years

3)    And Exceeding 7 years

Best Car Insurance rates

 A customer who wants to buy car insurance today has many options in buying an insurance policy for his/her car as there are number insurers in the market competing against each other to grab the attention of the customer both in public and private sectors. Advanced technology like online and informative portals have also helped in getting the information nevertheless many of the customers are still unaware of the fact as to where and how do they get the best insurance quotes.

Tips to find out the best insurance quotes

 1)    Online comparison of the insurance quotes from different companies( there are some brokers also available with these services where one can simultaneously get the comparative quotes of 4 to 5 companies of their choice)

2)    As insurance also depends on the age of the vehicle and if the vehicle exceeds 5 years there is a great scope for the customer to negotiate on the premium prices since it is a mutually agreed premium rates.Customer can select the best insurance quote that suits his budget.

3)    Due to high competition insurers these days are also different kind of services to those preferred customers who are there with them continuously and who have got good record in terms of credit and other factors such as no claims good discounts can be availed

4)    Insurance premium is also dependent on the underwriting experiences of the different insurers as per the claims they process on a particular model or make of car and may vary from state to state. Cars which have a record of low claims have higher chances for negotiation.

Summary

The purpose of buying car insurance apart from the fact that it is mandatory under law is also to safeguard the probability of incurring financial loss in case of accidents. As comprehensive car policy can be costlier if not researched and analysed properly, one has to study, negotiate and buy the insurance policy. This way one can avail the best insurance saving not only money but also getting the required insurance of the vehicle .

Also Read How to Buy Cheap Car Insurance in India

Classification of Motor vehicles:

In India, Motor Vehicles are classified into three categories for the purpose of Insurance.

• Private cars
• Motor scooters and Motor cycles
• Commercial vehicles.

Rules of Motor Vehicle Insurance and Motor Vehicles Act:

Vehicle Insurance in India is covered under the Motor Vehicles Act . This act was passed in 1939 and has undergone some amendments in 1988 and 1994.There are two components to this law one of which is optional and the other mandatory. The third party liability is mandatory and insurance of the Vehicle against Damage (Comprehensive Coverage) which is optional.

 Third Party Liability:

 As per the Act, all motor vehicles in public places should have third party liability insurance cover.

Liabilities covered under third party liability

• Body Injury or death of the person which includes the owner of the goods or the person authorized by the owner in the vehicle.
• Damage to the property which belongs to a third party
• Body injury or death of any passenger of a public service vehicle
• Body injury or death of paid driver of the vehicle, conductor or ticket examiner ( in case of public service vehicles), workers, carried in a goods vehicle.

Limits covered under the third party liability

• There is no limit  in case of death of or bodily injury of third party or passenger of a public service vehicle
• A limit of Rs6000 in case of damage to any property of a third party.

Comprehensive coverage

The second part of the Motor Vehicles Act  which is optional is also known as “ Comprehensive  Coverage” which covers the loss or damage to the Vehicle. This is covered under three broad sections.

a) Own Damage

 The Insurance Cover is for the loss or damage to the vehicle or its accessories from fire, explosion, self ignition, lightning, burglary, riots and strike, theft, flood, cyclone, external accident,terrorist activity,landslide, rockslide  in transit by rail,road,water air, elevator.

b) Third party liability

 As covered above, this covers all the expenses that arise out of the accident caused by the vehicle which the insured becomes legally liable to pay i.e,

• Death or bodily injury to any person including occupants carried in the vehicle( the insurer doesn’t pay for occupants who are carried on hire or for reward)
• Damage to the property of the third party.( except for the property belonging to the insured or held in trust or control of the insured)

c) Personal accident Cover for Owner – Driver

Liability policy also covers the personal accident of owner and driver but with the following exceptions.

1)      Loss , damage or liability incurred outside the geographical area

2)      Nuclear risks or war

3)      Usage other than the” limitations of use”

 What are the Factors considered for Charging Premium

• In case of third party liability Insurers should charge the premiums prescribed by the authority(Insurance and Regulatory Development Authority IRDA) only.
• However in case of comprehensive coverage the insurers can charge the premium based on the risk assessment and their own underwriting experience.

a)     Factors considered for Charging Premium of  Private Cars

In case of private cars the premium is charged based on

1)   IDV( Insured declared value) of the vehicle:

 The IDV is fixed based on the selling price of the brand and model provided by the manufacturer at the commencement of insurance or renewal and adjusted for depreciation. IDV of vehicles which are older than five years and the vehicles which are discontinued from manufacturing are determined as per the mutual understanding between the insurer and the insured.

2)   Cubic Capacity

One more factor for the calculation of premium is the cubic capacity of the vehicle classified into three categories

• Not exceeding 1000 cc
• More than 1000cc but less than 1500cc
• Exceeding 1500cc

3)   Geographical Zone

• Zone A – Ahmedabad, Bangalore, Chennai, Hyderabad,New Delhi ,Kolkata,Mumbai and Pune
• Zone B – Rest of India

Apart from the above said the insurer will charge additional premium for electrical/electronic fittings,CNG/LPG, fiber glass tank fuel tanks etc.

b)    Factors Involved in Calculating Premium of Two Wheeler Motorised Vehicles

Except for the Cubic Capacity the premium rating factors are same as private cars. The CC for two wheelers is classified as

• Not exceeding 150 cc
• Exceeding 150 but not 350cc
• Exceeding 350Cc.

c)     Factors Involved in Calculating Premium of Other Vehicles

• For Taxis, the age of the vehicle taken into account is upto 5 years, between 5 to 7 years and exceeding 7 years
• For Buses age of the vehicle is taken same as the taxis but based on the licensed carrying capacity as upto 18 passengers and between 18 to 26 passengers.In case of buses the geographic area is divided as Zone A – Delhi, Chennai,Kolkata and Mumbai, Zone B – All other state Capitals, Zone C – Rest of India
• For Goods Carrying Vehicles rates vary as per the age of the vehicles ( as in the case of buses and taxis) and zones as per the buses but the Gross vehicle weight is considered for the calculation of premium( not exceeding 12000 Kgs) vehicles exceeding 12000 kgs will attract additional premium.

Also Read about how to Buy Cheap Bike Insurance in India

 How to buy Cheap Car Insurance in India

Buying Car Insurance in India and figuring out which insurer will provide a cheaper rate is an exercise which consumes considerable time but it is worth the effort. The reason is that there are substantial differences in premium rates between different insurers for the same service. Some companies charge more because they bet on the ignorance and laziness of the customer.

Third Party Cover is uniform across all companies so there is not a lot that you can do to find a better rate. However in the case of Comprehensive Coverage which is generally more prevalent, the regulatory authority gives permission to insurers to quote the premium based on their risk assessment and underwriting experiences. The below mentioned points will help the reader to understand and buy insurance which is cheaper and suited to his/her needs.

1) Automobile Association Membership:

• A discount on the own damage premium is allowed if there is a membership with the recognized automobile organizations
• Private cars certified by the vintage and classic car club of india are given discount on the own damage premium ( discount of 25% On own damage premium)
• Vehicles fitted with anti- theft devices approved by Automobile Research Association of  India and certified by the registered automobile association’s ( automobile association of upper india, automobile association of southern india, the western india automobile association etc)  will get a discount of 2.5% on the Own damage premium

2) Concession on Laid up Vehicles:

A concession on the premium can be availed in case of laid up vehicles which are not used for a specific period ( a vehicle not used for two months) . In such cases the insurer is liable to pay only for the theft or fire damage in case of a package policy. However one should inform the insurer the laid up time of the vehicle in written. The premium thus credited can be adjusted in the next renewal premium but is not refunded in the form of cash.

3) No Claim Bonus (NCB):

No claim Bonus can be availed during the renewal of the comprehensive cover subject to the condition that there are no claims before the policy has come for renewal after a period of 12 months (i.e, at the time of expiry).  A discount on the own damage premium ranging from 20% to 50% can be availed if there are no claims. 20% discount if there are no claims in the preceding year. The discount increases by 10% if there are no claims for the previous years and is paid a to maximum of 50% if there are no claims in the past five years.

4) Online purchase of policy:

Some of the Insurers offer Discounts if the policy is bought Online as this will help them save the costs on manpower, distribution etc and in turn the pass on the same to the customers hence making the policy cheaper if bought online.

5) Policies with Limited liabilities:

There is an option that a customer can also buy with a limited liability policy which can make the insurance cheaper to an extent.

a) Limited only policy in case of  Fire

In this the customer has to pay only for liability +25% of the own damage premium for the vehicle

b) Liability policy only in case of  Theft

In this cover Liability only premium and 30% of the Own damage premium is paid. In case of liability with theft and fire customer will pay for the liability and 50% of the own damage premium.

6) Other Factors:

A part from the above said the premium is also dependent on

• The Car Make and Model – As certain models have high claims over others which makes the insurers to fix premiums based on their underwriting experiences
• The areas where is vehicle is used – Example geographical areas with high traffic congestion, hilly areas etc
• In European and Western countries factors like Gender using the vehicle also plays a role in deciding the premium which is still at a nascent stage in India.

Also Read about how to Buy the Best Car Insurance in India

Summary

Buying Cheap Car Insurance can be done quite easily by comparing the online quotes of different insurers keeping in mind the above mentioned parameters. Note most people are ignorant about how the premiums are calculated and just use the agent to keep renewing the policy without knowing they can save a substantial amount by doing a bit of research. Saving thousands of rupees is possible with an hour or two of online research. This article should help in providing some guidance on how to go about saving your hard earned money.

 It is mandatory to have commercial vehicle insurance in India as they are possibility of accidents and damages .However like other Vehicles, not all Commercial Vehicles are created equal for Insurance Purposes. Commercial vehicles in India are insured under three categories.

a) PCV (Passenger Carrying Vehicles) - example  Rickshaws (Motorised), Taxis and Buses.

b) GCV (Goods Carrying Vehicles) – example Trucks

c) Miscellaneous - example ambulances and mobile dispensaries/clinics, Publicity Vans (for cine film recording)

While the third party liabilities cover is the statutory requirement for all the motor vehicles the comprehensive cover differs for each segment for the calculation of premium. The premium for the commercial vehicles under comprehensive coverage is calculated the same way as in the case of a private car policy with some additions/exclusions depending on the segment as mentioned above.

Some exclusions under own damage (as compared to the private car policy)

1)      Damages to accessories by housebreaking or theft or burglary is covered only when the vehicle is also stolen at the same time

2)      Damage caused by overloading of the vehicle is not covered.

The commercial vehicle package policy has an additional cover in case of towing .If the insured vehicle is used for the towing purpose ( of a disabled mechanically propelled vehicle) under the condition that the vehicle is not towed for hire or reward purpose and also cover is not available for the damage caused to the towed vehicle or the property .

Taxis:

Own damage rates of premium vary according to

• Age of vehicle – upto 5 years, between 5 and 7 years and exceeding 7 years
• Cubic capacity ( Cc)  upto 1000, between 1000 and 1500 and exceeding 1500.
• Zone A & B

Buses:

Own damage rates of premium vary according to

• Age of the vehicle( same as taxis)
• Licensed carrying capacity
  • Not exceeding 18 passengers, Exceeding 18 but not 36
  • And as per the Zone ( Zone A – Chennai, Delhi, Kolkata and Mumbai)(Zone B- All other state capitals)(Zone C- Rest of India)
  • Rates are higher as the passenger capacity goes up and higher for zone B and A. Lower in case of Zone C.

For Goods Carrying Vehicles:

 Own damage rates are calculated same as per the case of buses and taxis and three zones A,B and C and Gross vehicle weight is also considered which should not exceed 12000 Kgs . Excess weight will attract higher premium.

Online Quotes

Before getting the vehicle insured it is always advisable to check and compare for the online quotes to select the best insurer for the vehicle to be insured. Most of the big insurers and also some third party websites provide information to compare the quotes. The following points should be considered before buying the commercial vehicle insurance on line.

1)      Generating Online Quotes is possible on the company’s website

2)      Whether the insurance companies provide you with a online customer support in case of any queries Available 24/7

3)      The Network of Garages across the country plays an important part which allows the customer to identify the nearest location in case of any problem.

4)     One should also look for the online payment options available for buying or Renewal of the Policy

5)      As the rate of premiums differ, one should also look at the Customer Speak (testimonials) columns as to how satisfied are the customers with that particular insurance company in case of a claim or a service.

Summary:

In Summary, the premium calculation is done based on the Insured declared value( IDV) age of the vehicle, zone and other factors such as carrying capacity, Gross weight etc differs across different zones. Accessories other than the manufacturer’s listed price can also be covered ( subject to conditions) with additional premium. Online quote generation and comparison with other players helps to identify the insurer best suitable to buy the policy from and hence makes easier to the customer/vehicle owner in selecting the right price and service.

Read the Rules and Premiums about Vehicle Insurance in India

Bike Insurance Products:

As per the rules laid by the Tariff Advisory committee( TAC),motorized two wheelers in India must have at least a third party insurance and this is made mandatory. This is similar to other vehicles like cars and trucks as well.

Any motorized two wheeler used for the purpose of domestic, professional, pleasure and social purpose by the insured or the employees of the insured come under this cover. However the usage of the two wheelers for the carriage of goods other than racing, speed testing, trial, connected to the motor trade are excluded.

Third party Insurance cover:

Just like in case of private cars motorized two wheelers will have a third party insurance cover which is also known as liability policy. This covers the

1)    The death or bodily injury of  any person including the owner or his authorised representative

2)    Damage to the property of the third party.

The capital sum insured in case of Motorized two wheelers is Rs 1 lakh and is paid as

a)    100% in case of death, permanent or total disablement, loss of two limbs or sight of two eyes, loss of one limb and sight of one eye

b)    50% in case of loss of one limb or sight of one eye.

c) For the Third property damage the cover is to a limit of Rs 6000(statutory).How ever if the property damage by the motorized two wheelers is to be taken up to Rs 1 lakh then an additional premium of Rs 50 will be charged at the inception of the policy.

Comprehensive Cover:

Comprehensive cover for motorized two wheelers not only includes the third party liability (third party cover) but also extends the cover to the damage caused to the insured vehicle. The  premium is calculated based on the below mentioned factors.

a) Insured Declared value( IDV) of the vehicle:

IDV is calculated on the basis of the manufacturer’s listed selling price of the model ( at the time of commencement of insurance of the vehicle and adjusted for depreciation)

b) Based on the Cubic Capacity( CC) of the vehicle:

i) not exceeding 150CC

ii) Exceeding 150CC but not exceeding 350CC

iii) Exceeding 350CC

c) Based on the Geographical zones:

Zone A – Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai,                         New Delhi & Pune

Zone B – Rest of India

d) Age of the Vehicle:

i) not exceeding 5 years

ii) Exceeding 5 years but not exceeding 10 years

iii) Exceeding 10 years.

The cover is extended to any damage caused to the vehicle or its accessories also termed as “ own damage” . It covers Damage caused by fire explosion,self ignition  or lightning, riots,  strikes, burglary, theft, earthquake, floods,cyclone,inundation,hailstorm,frost,by external means of accident,terrorist activity, transitbyroad,rail,inlandwaterway,lift,air,elevator,landslide,rockslide.

External fittings like Electrical/electronic, CNG,LPG,fibre glass fuel tanks are also covered with additional premium and after the due certification from the respective RTA.

Where do we get the Bike Insurance:

One can buy Bike insurance in both offline and online modes. There are both public and private insurers who sell two wheeler insurance across India. Customers can approach any of these insurers to get acquire the policy. Apart from this the regulatory authority has made it mandatory to all the insurers to provide insurance even if it is a third party insurance as most of the private insurers were only promoting the comprehensive cover prior to 2007( i.e, before the detariffing of motor third party premium rates) . Third party insurance premium will be uniform across all the insuring companies as the rates are controlled by IRDA.Where as companies can quote different quotes for comprehensive cover based on the underwriting experience and risk assessment.

Tips on getting Cheap Bike Insurance:

Higher usage of internet and companies getting online has helped the customer to analyse various parameters to ensure that they can buy the cheapest insurance and the best services. Hence one has to look for the following before buying the insurance for their two wheeler

1)    Get quotes from 3 or 4 different insurers to compare the premiums with the help of online calculator for premium on the company’s website

2)    Look for the Number of Garage tie-ups the – More the Better

3)    Study the points under the headings “what is covered” and “what is not”

4)    Go through the past experiences of customers in the testimonial columns and particularly the settlement of claims by those insurers.

5)    Look for the payment options ex debit card, credit card ,net banking

6)    Check for the customer support( live) in case of any queries

Last but not the least opting for cheap insurance may save you some money but you also need to look at the picture as a whole ( example service, settlement of claims etc) .

Summary:

Owning or driving our Favourite Bike is something that everyone is passionate about and hence it becomes a top priority that we insure the vehicle and as well as the people who own/drive it. Though it is mandatory to take up the third party insurance only, you has to think of the loss caused to the insured vehicle as well, After all this is an asset which close to our heart.

Best car insurance is not only about comparing and buying the cheapest car insurance but also about the other factors such as

1)      Network of garages across the country

2)      Online provision of issuing a policy both for new and renewals

3)      Testimonials from the customers on the company’s website.

4)      Payment options such as net banking, debit/credit card , cheque etc

5)      Online customer service availability  to answer queries raised by the customer

6)      History and process speed of clearing the claims

7)      Discounts available  etc

While we have mentioned some parameters, the top car insurers are also competing among themselves to be as informative, service friendly with their customers as possible to retain and gain new customers by running some special programmes such as” preferred customers” .This will help the customer and gives him/her wider choice of insurers to get the best insurance .

For the benefit of the customer we have listed some of the top insurers in india who have large number of satisfied customers. The top public and private insurers are

Public Insurers

1)      The Oriental insurance company

2)      The New India Assurance company

3)      The National Insurance company

4)      The United India Insurance company

All of the above mentioned companies have decades of experience in the motor Insurance Industry and also have a good reputation among the public. Prior to detariffing of motor insurance, the private insurers were reluctant to do only third party insurance which was unprofitable and were more interested to promote comprehensive policies. Only the above government companies were helping the customers with third party coverage when the customer wanted to buy only a third party cover.

Note unlike private insurers, government insurance companies do not have an overriding profit motive but also have a social responsibility aspect as well. So while they may not be that aggressive in acquiring customers or glitzy marketing, you can trust them much more than the private guys.

Private Insurers

1)      ICICI Lombard

2)      Bajaj Allianz

3)      TATA AIG

4)      Reliance General Insurance

5)      HDFC ERGO

6)      The Royal Sundaram

The above said are some of the top private insurers who have a very large base of satisfied customers.There are other insurers as well but we have named a few .By looking at these companies and their quotes,youe can be rest assured that he/she will get the best insurance.

The entry of private players has brought in itself more options to the customers with innovative ideas and practices which are customer friendly and avoid cumbersome processes. To name a few

Cashless facility

Some of the insurers have the garage tie ups when there is a claim and also extend a cashless facility where the customer can be relieved of going through the lengthy procedure of pay and claim. One can always look at this facility and if there are any garages nearby which are covered under the cashless facility.

Instalment Payment of premium

Some of the insurers offer interest free installment payment of premium if it is done through online mode.A customer can check if there is such kind of option available with the insurer. Ex ICICI Lombard

Saving Money through Online Purchase

Insurers are also promoting the online purchase of insurance policy for the new or renewal as this will be less of paper cost and also save a lot on the distribution costs, Manpower etc and are willing to pass on discounts to the customers. Hence online purchase of policy may come at a cheaper rate than the traditional way of buying insurance.

Summary

The advancement of technology, the growing usage of internet and with insurers tuning up themselves on these lines has brought many advantages to the customer. Information is available at the click of the button and all that is required is to take out some time and compare who can be the best insurer and which is the best insurance for his/her vehicle. This has also paved the way that the insurers coming out with lot of innovative ideas with an aim to retain their old customers and as well as gaining new ones. By and large today the customer is well informed and has the liberty to choose the best policy required for his/her favourite car.

Also Read about Different Car Insurance Products in India

Third Party Insurance Meaning:

Third party liability is a mandatory requirement in India under the motor vehicles act. Since the motor vehicles plying on roads are prone to accidents (India has one of the highest accident rates), this may result in financial loss to the other vehicle owners. This cover is a must for all cars, bikes and commercial vehicles in India. The reason is that if for some reason the guilty vehicle is not able to compensate the victim, then the insurance company has to cover for the victim losses.Third Party Insurance covers financial loss in case of any untoward incident which may result in bodily injury, death or property damage of the affected party.

What it Insures:

In the event of accident by the use of Motor vehicle anywhere in India the insured is saved from financial loss otherwise which he/she becomes legally bound to pay to the claimant if not insured.

1) Death or bodily injury of any person including the owner of the goods or his representative (authorised) in the carriage as long as the requirements of motor vehicle act are fulfilled.

2) Damage to the property of a third party other than property which belongs to the insured or which is held in trust or custody or control of the insured.

3) Death or bodily injury of any passenger of a public service vehicle

a) Driver , conductor or ticket examiner

b) Workers , carried in a goods vehicle

4) In case of death or bodily injury of the third party or passenger of a public service vehicle the amount is paid without any limit

5) In case of damage to the property of the third party a limit of Rs 6000 is paid by the insurer

6) Personal accident cover for owner and driver provided that owner/driver is the registered owner of the vehicle insured and is named in the policy with an effective driving license.

7) Capital sum insured is Rs 2 lacs for private cars and commercial vehicles.

In the event of death of the sole insured the policy will be valid for a period of three months from the date of death of the insured or until the expiry of the policy which ever is earlier. During this period the policy can be transferred to legal heirs of the insured to whom the custody and use of the motor vehicle passes or obtain a new policy for the vehicle.

Exceptions to the Third Party Insurance Cover:

1) The insurer will not cover any accidental loss or damage outside the geographical area

2) The insurer will not pay if the vehicle is used other than in accordance with “limitations of use”

3) If the vehicle is driven by any other person other than the licensed driver.

4) Claim arising out of contractual liability.

Summary:

Third party insurance is a must for any motor vehicle on Indian roads and covers most of the aspects of incurring a financial loss to the owner of the vehicle without which he/she may end up paying huge amount in case of any accident or property damage caused by the vehicle. Buying a third party insurance cover for the vehicle will also ensure that a law abiding citizen India follows the statutory requirement that regulatory authority has made. One can approach any insurance company to buy a third party cover including the private players and the tariffs for the cover are decided by the regulatory authority so that rates are uniform across the insurance companies. The customer need not to do much of research work in terms of comparing premium across insurers except for the service offered by the insurers.