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Private Car Insurance Policy Online in India

With the digitalization in India, internet usage is increasing day by day. The private car insurance policy in India is much cheaper when one opts for it online. This article provides information about the private car insurance policy in India and its benefits.

One way to find a private car insurance policy is to look for an agency that offers competitive rates and flexible payment terms. Both these factors are important when looking at a company because they will directly affect the final cost of the policy.

Private Car Insurance Policy

India is a country that has a great amount of traffic on the roads. In India, private cars are also not so affordable which has resulted in many people using public transportation. In this scenario, it becomes important to have a good liability cover for your vehicle.

In India, there are many options available when it comes to private car insurance providers. However, before choosing a particular policy you should ensure that the policy covers everything that you need it to and is priced according to your needs.

The key benefits of buying Private Car insurance Online in India are:

Private car insurance policies are offered by private insurers in India. In case of a car accident, the insurance company agrees to cover the cost of damages caused to someone else’s vehicle and property.

One of the most important things in India is private car insurance. All vehicles must have an insurance policy, and Indian citizens can purchase policies online from several private companies.

Several Car Insurance Companies offer Private Car Insurance Policy such as:

  • Bajaj Allianz Private Car Insurance
  • New India Assurance Private Car Insurance
  • National Private Car Insurance
  • SBI Private Car Insurance
  • Raheja QBE Private Car Insurance
  • Magma HDI Private Car Insurance

Private Car Insurance Policy:

As per the Motor Vehicles Act, 1988 it is mandatory for every owner of a vehicle plying on public roads, to take an insurance policy, to cover the amount, which the owner becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury or damage to property. A Certificate of Insurance must be carried in the vehicle as proof of such insurance.

1.) Liability Only policies:

Liability is covered for an unlimited amount in respect of death or injury and damage to third party property for Rs.7.5 lacs under Commercial vehicle and private and Rs. 1 lakh for Scooters / Motor Cycles.

The policy covers the vehicle owner's legal liability to pay compensation for:

1. Death or bodily injury to a third party person.

2. Damage to third party property.

2.) Package Policy:

This covers loss or damage to the vehicle insured. In addition to the coverage under liability only, this policy covers loss or damage to the insured vehicle and its accessories due to:

  • Fire, explosion, self-ignition, or lightning.
  • Burglary, housebreaking, or theft.
  • Riot and Strike.
  • Malicious Act.
  • Terrorist Act.
  • Earthquake (Fire and Shock) Damage.
  • Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone, and Hailstorm.
  • Accidental external means.
  • Whilst in transit by road, inland waterway, lift, elevator or air.
  • By landslide/Rockslide

Private Car Insurance Policy Coverages & Discounts Offered by Companies:

Third Party Liability: This policy protects you against any legal liability towards third parties, arising out of the use of your vehicle, leading to any bodily injury or death of a person, and any damage caused to the third-party property.

Personal Accident to Owner-Driver: Coverage of Rs.1 Lakh for the individual owner/driver of the vehicle while driving or traveling, mounting, or dismounting. Optional personal accident covers for co-passengers are available.

No Claim Bonus: NCB is the No claim bonus which is offered to auto insurance customers at the time of renewal if there is no claim during the previous policy period. The no-claim bonus is a form of discount offered to the customers for not claiming in the previous policy period. No-claim discounts are available on renewal of the policy, ranging from 20% to 50%, depending upon the type of vehicle and the number of years for which no claim has been made.

Return to Invoice: In the case of theft or total loss, this cover pays for the financial shortfall between the manufacturing listed selling price and the insured declared value of the vehicle. This add-on also covers the amount spent on the registration fee, road tax towards the insured vehicle along the insurance premium.

Electrical & Electronic Accessories: You’re electrical & electronic accessories like music players, seat covers, LCD mini TV, fog lights, etc. can also be covered.

Bi-Fuel System: Your CNG/LPG Kit can also be covered whether it is in-built or fitted separately.

Key Protect Cover: We shall cover the cost to replace vehicle keys if the same are lost/stolen and also cover both the lock and key if the vehicle is broken into.

Depreciation Reimbursement: You can have the facility of daily reimbursement if you buy the additional car insurance services. The Company will pay a daily cash benefit to the insured if his/her vehicle is in the garage for more than 3 days.

Engine Guard: This add-on essentially pays for the repair and replacement expenses or damage to internal parts of the engine, gearbox, transmission, or differential assembly due to ingress of water in the engine or leakage of lubricating oil from the engine / respective assembly.

Roadside Assistance:A car breakdown is not completely inevitable. In case of small or big breakdown or situation like flat tires, running out of fuel, towing the vehicle, emergency fuel requirement, etc. Private Car Insurance policy offers 24*7 roadside assistance services.

Consumables Cover: In the standard Motor insurance policy, small consumable expenses such as screws, nuts, bolts, oils, etc. are not covered and you will have to bear the cost if the need arises to repair or replace them. This cover pays the cost of consumables required to be replenished arising from an accident to the vehicle.

Voluntary Excess Discount: You can avail more discounts on the insurance premium, if you opt for a Voluntary Excess, in addition to the Compulsory Excess.

AAI Membership: You can avail of the additional discount if you are a member of the Automobile Association of India (AAI), which is registered with IRDAI.

Anti-Theft Devices: If you have installed anti-theft devices approved by the Automotive Research Association of India (ARAI) in your car, you can avail 2.5% discount (or up to Rs. 500) on your Own-Damage (OD) Premium.

Loss or damage to the vehicle: The policy also provides cover against any damage or loss of your vehicle or its accessories due to the following natural and man-made calamities:

Natural calamities: Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, and rockslide.

Man-made calamities: Burglary, theft, riot, strike, malicious act, accident by external means, terrorist activity, and any damage in transit by road, rail, air, inland waterway, lift, or elevator.

Private Car Policy Exclusions:

Any loss or damage to the vehicle and/ or its accessories will not be covered if caused by the following:

  • Normal wear, tear, and general aging of vehicle
  • Consequential loss, depreciation
  • Mechanical and electrical breakdown
  • The vehicle being used otherwise than by limitation as to use
  • Damage to/ by a person driving the vehicle without a valid license
  • Damage to/ by a person driving the vehicle under the influence of drugs or liquor
  • Loss or damage due to war, mutiny, or Nuclear Risks
  • The vehicle is being used otherwise than by “Limitation as to Use” as stated in the schedule.
  • The vehicle being driven by or is to be driven by or in the charge of any person other than a driver as stated in the Driver’s clause mentioned in the schedule.
  • A claim arising out of contractual liability
  • Death arising out of and in course of employment of a person in the employment of the insured or in the employment of any other person who is indemnified under this policy or bodily injury sustained by such person arising out of and in course of such employment.
  • Death of bodily injury to any person (other than a passenger carried because of or in pursuance of a contract of employment) being carried in or upon or entering or mounting or alighting from the motor vehicle at the time of occurrence of the event out of which any claim arises.

What is the Difference between Private Car and Commercial Car Insurance Policy?

A commercial car runs more than a private car. And that's why it is more prone to damage as compared to private cars. There are two types of car insurance based on the type of car, let us know why?

Private Car Policy Commercial Car Policy
Coverage Private Car Insurance provides financial coverage against fire, theft, natural calamities, accident, riots, and personal accidents & Third-party liability. A commercial car insurance policy protects financially against any damage fire, theft, natural disaster, accident, and personal accident of the driver & Third-party liability.
Risks Involved The risk is comparatively lesser with a private car. The usage of the car may not be rough. And this keeps the insurance premium and deductible low. There is a high risk with commercial cars as the number of miles it runs is more, hence the risk exposure is higher. This, in turn, affects the insurance premiums and deductibles.
Premium Rates The premium rate depends on the cubic capacity, but it is independent of the vehicle age. The premium rate depends on the risk involved, the age of the vehicle, and the cubic capacity.
Documents Required for Claim Process
  • Registration Certificate,
  • Driving License, and
  • Taxation Book.
  • Fitness Certificate,
  • Registration Certificate,
  • Load Challan,
  • Driving License,
  • Taxation Book,
  • Copy of FIR,
  • Trip Sheet.

How to Buy/Renew Private Car Insurance Policy with PolicyBachat?

At buy or renewing a Private car insurance policy online is easy and quickly sitting at home. Follow the below-mentioned steps to renew your policy within 5 minutes.

  • Go to 'Car Insurance Online' to compare quotes above this article. Fill in the registration number of your car and required details and tap on 'Start Save Money.
  • On the quotes section, either go with your current provider or choose another one to suit your needs.
  • Make the payment and you will receive the confirmation at your email address. If assistance needs Call: 1800-123-4003.

How to Claim Private Car Insurance Policy Online?

An insurance claim is an official request made by the policyholder to the insurance company for compensating for the loss/damage involving his/her insured car. The amount of claim that the policyholder is entitled to entirely depends on the type of policy purchased. Private car Insurance allows its policyholders to make instant claims and provides quick and convenient claim settlements.

Step 1: Claim Registration: Immediately inform the insurer by calling on the toll-free number. You can write them an email or visit their customer portal.

Step 2: Send the vehicle for Repair:
  • Duly filled and signed claim form. In the case of a company or firm-owned vehicle, the company’s seal needs to be affixed.
  • An original and duplicate copy of the registration certificate.
  • Copy of driving license (original will be required for verification). In case the person driving the vehicle is found without a DL, the insurance cannot be claimed.
  • Police Report or FIR in case of partial theft, third party damage, death, disability, injury.
  • KYC documents will be required if the claim amount exceeds Rs. 1 Lakh. You can submit address proof & ID proof.

Step 3: Claim Settlement:Based on the report made by the surveyor after receiving the documents and estimating the loss, the claim will be settled accordingly. The surveyor may re-inspect the vehicle once the repair is done. Private car insurance will issue CAC (Claim Amount Confirmation) on receipt of the original repair bill.

Step 4: Delivery of the Vehicle: The delivery of the vehicle can be done after paying the share of the claim if any. You will have to submit the Satisfaction letter signed by you at the time of taking the delivery of the repaired vehicle. The payment will be received from the insurer’s end within 7 days directly to the garage.

Documents Required for Private Car Insurance Online:

For accidental injuries:
  • The policyholder should immediately send a written notice to the insurance company with all relevant documents.
  • The claim form should be duly filled in and submitted along with the following documentation:
  • Medical certificate that specifies the nature of the injuries
  • Report from the medical examiner
  • Details of the treatment availed
  • Name of the hospital/nursing home/doctor
  • Employer’s certificate that states that the policyholder was on leave for the duration specified in the claim
  • Fitness certificate of the policyholder

For accidental death: The following documents need to be submitted by the claimant in the event of accidental death:

  • FIR or police report
  • Post-mortem report
  • Panchnama
  • Departmental inquiry, if applicable
  • Report from the hospital/nursing home/doctor
  • Death certificate

The Private car insurance claim process is easy and hassle-free if you follow the guidelines and report the incident on time. The insurer also resolves all claims and makes the necessary pay-outs within the shortest possible time.

For theft:
  • If your car has been stolen, you should immediately inform the office from where the policy was issued.
  • You should also submit a written notification to Private Insurer.
  • The insurer will then designate a surveyor for investigations. It is also necessary to notify the police and file an FIR.
  • Any delays in notifying the police or the insurance company may jeopardize the claim settlement process.

Private Car Insurance Premium Calculation:

Private car insurance premium depends on many factors such as IDV, Add-ons, Age of the car, Make and Model of the car, year of registration, Manufacturing date, Previous NCB, RTO, etc. Private car insurance premiums can be obtained instantly using the online calculator. It is advisable to use this car insurance calculator before deciding on setting the budget for the car insurance.

Below are the factors which need to be input to get the Private car insurance premium online:

  • Basic details such as Name, E-mail, Mobile number, etc.,
  • Car Make and Model which decides the premium of the car to be paid by the customer.
  • An insured declared value is the maximum liability of the insurance company in case of any claim. Higher the IDV, the higher the premium.
  • Year of registration of the car to arrive at the age of the car. Private general insurance covers four wheelers up to 20 years of age online. Cars aged above 20 years would be subject to inspection and approval from the underwriting team before quoting.
  • The previous year's no claim bonus also decides on the premium to be paid for the Private car insurance policy. The higher the NCB, the lower would be the premium to be paid by the customer.
  • RTO location decides on the premium to be paid in the online car insurance calculator. State capitals are classified under Zone A while the rest of the cities come under Zone B.

The below table is for illustration purposes only, you can compare and get exact rates.

Car Model IDV Zero depreciation cover Premium
Honda 10. 34 lakh 3558 36757
Fiat 4.03 lakh 2158 13,962
Rolls Royce 2.19 lakh 879 7004
Skoda 4.23 lakh 1390 14,398

The IDV of the vehicle is to be fixed based on the manufacturer’s listed selling price of the brand and model as the vehicle insured at the commencement of insurance/renewal and adjusted for depreciation.

The schedule of age-wise depreciation as shown below is applicable for Total Loss/Constructive Total Loss (TL/CTL) claims only.

Not exceeding 6 months 5%
Exceeding 6 months but not exceeding 1 year 15%
Exceeding 1 year but not exceeding 2 years 20%
Exceeding 2 years but not exceeding 3 years 30%
Exceeding 3 years but not exceeding 4 years 40%
Exceeding 4 years but not exceeding 5 years 50%

Conclusion: Car insurance is a financial tool that provides you financial stability against any expenses raised due to damage to your car. A car is an important mode of transportation for many people. Whether it is a private car or a commercial car, to ensure the protection of your car, you need to buy car insurance online, from the comfort of your home with, if need help? Call: 1800-123-4003.

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