Car Insurance
What is a Car Insurance?
Car Insurance is a legal agreement between a car insurance company and the policyholder where the car insurance company assures payment of any financial loss that the policyholder may incur to his car or to the third party due to an accident, theft, fire, natural calamities or other unfortunate events. The policyholder pays a premium to the car insurance company for this financial security.
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EquitySeeds Consultants would collect the neccessary details and share with Insurance companies and brokers to get the best car insurance policy in India for you. You can follow the steps below to buy a car insurance policy online from us:
Best Car Insurance Policy in India
EquitySeeds Consultants offers guidance in getting a car insurance policy from the below list of General insurance companies in India:
Car Insurance Policies:
Below are the top selling car insurance policies at EquitySeeds:
Benefits of Car Insurance in India:
Car insurance provides financial security to the bike owners against any financial loss due to accidental damage or other unfortunate events like theft, fire, natural calamities, etc. Having a car insurance is not a choice but a necessity due to two main reasons:
- It is a mandatory requirement to have at least a third-party car insurance in India under The Motor Vehicle Act. Failure to abide by this rule can result in penalties or jail. Moreover, if an accident is caused by an uninsured car, then legal actions can be put against the car owner.
- Accidents can happen anytime, these accidents can be caused due to bad roads, natural calamities, man-made calamities like fire, theft, etc. Such accidents can damage the vehicle or cause injury or death too, car insurance provides financial assistance in such accidents.
Do not buy a car insurance just because it’s mandatory. Also, keep a note of several benefits that a car insurance offers:
The financial loss incurred due to accidental damage or theft, fire, natural calamities, etc are usually huge. Getting a car insurance provides assurance for such damages and unfortunate events and proves to be of great help in recovering the financial losses incurred.
Your vehicle may require regular repairs and part replacements due to damages caused by regular use. Depending on the severity of damage, the cost of repairs or parts can be huge. Getting a car insurance provides assurance for such damages by covering the cost of repairs and part replacements.
While, it is a mandatory requirement to have at least a third-party car insurance under The Motor Vehicle Act. A car insurance can help in covering the legal fees for any lawsuit filed against you due to an accident from your car.
A car insurance may cover for the medical expenses such as dental treatment, fractures, etc which may not be covered in your health insurance policy.
No claim bonus is provided to the car owners on renewal of their car insurance policy if there is no claim made in the policy period.
Additional riders such as pillion rider, zero depreciation, invoice protection, personal accident cover, etc helps in enhancing the scope of coverage of a car insurance.
You can get your vehicle repairs and part replacements at network garages on a cashless basis.
A third-party car insurance provides financial cover for any damage caused to the third party due to your car accident. The Insurance company pays in case of bodily injuries, permanent disability, temporary disability or death of the third party due to car accident, also property damage is covered.
Types of Car Insurance Policy:
There are 3 different types of car insurance policies in India offering benefits to fulfill your different insurance needs. Thus, it’s important to understand the differences in each car insurance policy before you get one.
Comprehensive Car Insurance:
A comprehensive car insurance is an extensive car cover that provides the benefits of both Third-Party Car Insurance and Own-Damage Car Insurance. On buying a Comprehensive Car Insurance in India, you can get financial security for damages caused to your own car or to a third party due to an accident involving your car.
A Comprehensive Car insurance while acting as an Own-damage Car Insurance not only provides an insurance coverage for road accidents but also damages caused by natural and man-made calamities like explosion, fire, theft, etc. And while acting as a Third-Party Car Insurance, it provides insurance coverage for any bodily injuries, permanent disability, temporary disability or death of the third party caused by an accident with your car. It also covers the property damage of third party up to Rs. 7.5 Lakhs.
Third-Party Car Insurance (TP):
Third-party Car Insurance is a mandatory requirement for driving a car in India as per law. It is the most basic car insurance cover one can get. On buying a Third-Party Car Insurance in India, you can get financial security for the third-party damages caused due to an accident involving your car. However, it does not cover the damages to own car.
The car insurance company pays for the financial liabilities if there is bodily injuries, permanent disability, temporary disability or death of the third party caused by an accident with your car. It also covers the property damage of third party up to Rs. 7.5 Lakhs.
Own Damage Car Insurance (OD):
An Own-Damage Car Insurance was first introduced in India by IRDAI in September, 2018. On buying an Own-Damage Car Insurance in India, you can get a financial security for any damage caused to your own car due to accident, natural/man-made calamities like fire, explosion, theft or any other unfortunate event.
Even before the Own-Damage Car Insurance was introduced by IRDAI, all the benefits of OD Car Insurance were already been offered in a Comprehensive Car Insurance.
IRDAI introduced these insurance policies for offering a flexibility to policy buyers in choosing the car insurer of their choice. As earlier, a policyholder had to get both OD and TP from the same company through a Comprehensive Insurance plan.
But now, a policyholder can choose to have the same insurance company or two different insurance companies for OD and TP.
How to Get Best Car Insurance policy in India?
People usually buy car insurance in India from the dealer who sold them the car without doing much research. However, there are several drawbacks to it, some of which are listed below –
- You might be paying a higher premium on the car insurance.
- You may have a lower Insured Declared Value (IDV) on the car insurance.
- The car insurance company may not have many cashless garage networks.
- The dealer might not provide information regarding add-on covers.
- The claim process is also not explained while purchasing a policy from the dealer.
- The dealer might sell only third-party car insurance to all, while comprehensive car insurance might be a better option or vice versa.
Hence, it is recommended to compare, buy or get car insurance online. To get the best car insurance in India, we recommend you to research the car insurance company first and then buy car insurance online.
Evaluate Best Car Insurance Companies in India:
Following the below checklist should guide you in selecting the car insurance companies in India:
IRDAI regulates the General Insurance companies that offers car insurance in India. You should always make sure that you buy car insurance online only from IRDAI regulated General Insurance companies.
Claim settlement ratio is one of the most important points of comparison. You can get the CSR figure of every car insurance company in India from the IRDAI annual reports, it denotes the percentage of claims settled by an insurance company against all claims received in a year. It is recommended to select insurance companies having higher CSR before you buy car insurance online.
ICR indicates the financial ability of the car insurance companies to pay claims. ICR value is calculated using the value of claims paid against the total premiums received in a year. It is recommended to select insurance companies having higher ICR before you buy car insurance online.
Solvency ratio indicates the financial stability of an insurance company as it compares all assets and inflows against the liabilities and outflows. It is recommended to select insurance companies having higher Solvency ratio before you buy car insurance online.
Claim settlement speed shows how quickly the insurance provider approves and disburses the claim amount. It is recommended to select insurance companies having faster claim settlement speed before you buy car insurance online.
Cashless garage networks are garages approved by the insurance provider for cashless car repair. It is recommended to select insurance companies having a long list of cashless garage networks before you buy car insurance online.
You may view the ratings and read reviews of the customer service experience on internet for any Insurance company, It is recommended to select insurance companies having good online reviews and ratings before you buy car insurance online.
| Best Car Insurance Companies in India: | ||
|---|---|---|
|
INSURANCE COMPANY |
NETWORK GARAGES |
CLAIM SETTLEMENT RATIO |
|
Bajaj Allianz General Insurance |
4000+ |
88.83% |
|
Bharti Axa General Insurance |
5200+ |
87.99% |
|
HDFC Ergo General Insurance |
6800+ |
91.23% |
|
ICICI Lombard General Insurance |
8800+ |
87.71% |
|
IFFCO Tokio General Insurance |
4300+ |
95.30% |
|
Kotak General Insurance |
1300+ |
82.81% |
|
National General Insurance |
3100+ |
85.71% |
|
New India General Insurance
|
3000+
|
89.60%
|
|
Reliance General Insurance
|
6200+
|
84.26%
|
|
SBI General Insurance
|
16000+
|
89.51%
|
|
Tata AIG General Insurance
|
5000+
|
90.49%
|
|
United India General Insurance |
3100+ |
82.93% |
Disclaimer: The above-mentioned claim settlement ratio (CSR) has been sourced from IBAI’s General Insurance Claim Insights Handbook – 5th Edition. EquitySeeds Consultants does not endorse, rate or recommend any particular insurance company or insurance plan.
Evaluating Best Car Insurance Policy in India:
Following the below checklist should guide you in selecting the best car insurance policy in India:
DV is the maximum sum assured that the insurance provider shall pay on the car insurance policy. Premiums are paid by the policyholder to the insurance provider for getting their car insured. You can evaluate the best car insurance policies in India by comparing the premiums for a certain sum assured of different car insurance companies online and then select the policy which offers a certain sum assured at lowest premium.
Additional riders help in enhancing the scope of coverage of a car insurance policy. However, you should buy these add-ons only after reviewing the main policy documents as most often new buyers purchase add-ons which are already covered in their insurance policy. It is recommended to select insurance policies that offer add-on riders such as Engine protection, zero depreciation, Roadside assistance, etc before you buy car insurance online.
It is recommended to purchase a third-party car insurance if you don’t use your car for travelling too frequently or if your car is quite old. However, if you travel in your car frequently or if it’s a new car, it’s recommended to purchase comprehensive car insurance.
| Comparison of different car insurance types: | |||
|---|---|---|---|
|
COVERAGE |
THIRD PARTY |
OWN DAMAGE |
COMPREHENSIVE |
|
Body Inquiries to third-party |
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Property damage of third-party |
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Damage to own car |
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Personal Accident Inquiry |
|
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Availability of Add-ons |
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Conclusion:
After knowing how to evaluate the best car insurance in India as per your insurance needs, you should be able to select a car insurance that matches your needs. However, if you would need more assistance you can count on our expert advisory.
Benefits of Buying Car Insurance Online:
There are several other benefits you get on buying a new car insurance or getting existing car insurance policy renewal online, some of which are mentioned below:
When you buy or renew car insurance online, you are not influenced by dealers or any specific insurance company. You can do your own research or get help from expert advisors in choosing the best car insurance in India for your vehicle.
You can view and compare car insurance of different companies and different types on several parameters such as claim settlement ratio, solvency ratio, incurred claim ratio, cashless network garages, etc at your convenience anytime and anywhere on the internet.
You can buy a new car insurance or get an existing car insurance policy renewal online at the comfort of your home in a few clicks and with least documents. The policy documents are received instantly on your email address and WhatsApp from the insurance broker and insurance company as soon as payment is complete.
While it is true that there are several online frauds. You need to make sure that you are on the official website of an insurance company or insurance broker to make the payments. You can make payments online by debit cards, credit cards, net banking, e-wallets on the secured payment gateways offered by the IRDA registered insurance companies and brokers.
You can even request a claim online in a few steps at the comfort of your home. The insurance company arranges a staff visit to verify the damages and the claim is processed to your bank account on approval.
Get the best Car Insurance Policy, with our Expert Advisory!