Product Information

An Automobile Insurance is a form of insurance that protects against losses involving automobiles. It acts as a cover for all the expenses of the damaged vehicle or losses met in an accident, stolen or written off as loss. It is basically a contract between the insured (customer) and insurer (insuring company).The insured agrees to pay the premium and the insurer agrees to pay the loss claims as defined in the policy.

According to the Indian Motors Act 1938, automobile insurance is a legal necessity in any case . If you own a vehicle you have to get it insurance done. A vehicle without the insurance is punishable by law. Auto insurance provides property, liability and medical coverage to your vehicles in case of all losses and accidents pertaining to the following

• Property coverage pays for damage to or theft of your car.
• Liability coverage pays for one's legal responsibility to others for bodily injury or property damage
• Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

Most auto policies are for six months to a year. generally, the insuring company notifies its customers whenever there is a need for renewal of policies and premium. Time Based Contingencies Basically, there are two types of automobiles insurances. One may opt for either one of them.

• Liability Insurance - Liability or the Third Party Insurance covers the only damages caused by the vehicle to other people or property.
• Comprehensive Policy - Comprehensive policy covers risks from covers risk of the following casualties.
  • Theft or damage to the vehicle
  • Death of the driver and/or passengers in the vehicle
  • Damage caused by the vehicle to other people or property.

• Natural Calamities
• Man made Calamities

• Normal wear and tear or general aging of the vehicle.
• Engine Failure and other electrical breakdown.
• Worn out tyres and tubes.
• Damages that occur while a person is driving with an invalid driving license.
• Damages done when driving in alcoholic condition.
• Damage due to a civil unrest, mutiny, or nuclear risk.
• Claims arising out of contractual liability.
• Claims on misuse of vehicle in comparison to what it was originally meant for. For example, if a private car is being used as a taxi and gets involved in an accident, the owner will not be able to claim damages.

Automobiles or cars are insured for a fixed amount which is known as the Insured Declared Value or the IDV. The IDV is calculated on the basis of the manufacturing, selling price of the vehicle brand and model. It also includes taxes and accessories attached at the time of commencement and depreciation of the vehicle. One can mathematically calculate it as the total summation of show room price plus sales tax minus depreciation, registration and other formalities. The key factors which play the premier role in calculating the premium are

• Brand of the vehicle
• Size of the vehicle
• Type of the vehicle.
• IDV
• Registration place
• Period of coverage
• The past claims or the history of the vehicle

Motorcycles and commercial vehicles over 10 years old and Private cars over 15 years old are generally not considered under comprehensive insurance cover. Usually, the automobile insurance policy is issued for one year and needs to be renewed on yearly basis.