Is it mandatory to insure my vehicle?
Yes. As per Motor Vehicle Act, No person shall use (except as a passenger), or cause or allow any other person to use a motor vehicle in a public space in India without a Third Party Insurance (Liability Insurance). Therefore, customer needs to insure the car at least with Liability Only cover.
What are the different types of Motor Insurance?
There are two types of Motor Insurance:
- Liability Only Policy - This covers Third Party Liability for bodily injury and / or Death and Property damage. Personal Accident cover for Owner Driver is also included
- Comprehensive / Package Policy - This covers loss or damage to the vehicle insured in addition to the Liability Only policy.
Maruti Insurance as a broking firm caters to insurance requirements.
Why the IDV is taken as 95% of Ex-show room price for New Car insurance?
This is as per the tariff. In the past, even after the loss of the vehicle on the second day of purchase, insurance company never settled the claim for full ex showroom price of the vehicle. They reason for the same was that the claim should be settled according to the market value of the vehicle. Now government has made it a rule that the value of the vehicle will be taken according to a fixed structure as per the age of the vehicle and insurance company should take the premium as well as settle the claim on the same value termed as IDV (Insured Declared Value). In this structure, the IDV of the new vehicle is at 95%. As the vehicle gets older every year, the IDV keeps going down. Full IDV is payable for all total loss / theft cases. Why pay the premium on 100% price of the vehicle when the claim is going to be paid on 95% price.
What are the factors affecting the premium of my car?
Factors affecting Premium are:
1. Third Party Cover (TP)
The Premium is based on vehicle CC.
It covers TP Life for Unlimited Value and TP Property damage for a certain amount.
There is an option to reduce the insurance company liability that reduces the premium.
2. Owner Driver Personal Accident Cover
It is a mandatory requirement. It insures the vehicle owner for Rs. 2 Lacs, at a premium cost of Rs. 100.
However, in case the owner has another vehicle in his name, and has taken this cover for that vehicle also, this cover can be made optional, and the premium can be reduced by Rs.100
3. Anti Theft Device discount
If your car is fitted with an anti-theft device approved by ARAI, you are entitled to an Anti theft Discount of 2.5% of own damage net premium or Rs. 500, whichever is less.
4. Voluntary Excess / Deductible
This is an option wherein, if the customer agrees to bear the claim cost upto Rs. 2500/5000/7500/15000, then the customer can get a discount upto Rs.750/1500/2000/2500 respectively at the time of taking Insurance.
5. Personal Accident Cover for Passengers
This is an optional cover. Its cost is Rs.100 per passenger, for cover of Rs. 2 Lac.
Rs.2 Lac is the maximum coverage that can be offered. It can be reduced upto Rs.10000 which will have a premium of Rs. 5/-.
6. Registration City
Premium Rate varies based on Registration City – higher premium is charged for metros and state capitals as compared to remaining cities.
7. Other factors which are considered for Premium Calculations are:
- Insured Declared Value (IDV), Insured Vehicle Value
- Engine CC
- Discounts- No Claim Bonus, Automobile Association Membership
- CNG / LPG- Inbuilt or External
- Electrical / Non-Electrical Accessories insured
- Vehicle type – Private or Commercial
- Customer type – Individual / Corporate
Can the accessories be insured?
Yes, those accessories which don't come as a part of the car and have been fitted separately will be insured separately on payment of additional premium. The premium will be 4% of the value of the electronic accessories, plus service tax on it.