According to the Motor Vehicles Act, 1988, it is mandatory for car owners to buy car insurance in India. This insurance plan ensures that the insurer reimburses any expenses arising Continue Reading

According to the Motor Vehicles Act, 1988, it is mandatory for car owners to buy car insurance in India. This insurance plan ensures that the insurer reimburses any expenses arising from an accident or a mishap involving the car or any liabilities arising therein. It also reimburses the car owner in case of the theft of the car and any damage caused by natural or man-made incidents. While the Act mandates a third-party liability cover and a personal accident cover for the owner-driver, there are various options available for comprehensive coverage.

Car Insurance in India

India is a vast country with hundreds of kilometres of drivable roads and millions of vehicles. However, it ranks at the top of the list of countries with the highest number of deaths from road accidents. In an accident, there is a possibility of damage to all the vehicles involved and the risk of injury or fatality of the people in the vehicles. Hence, the authorities made it mandatory for all vehicles plying on public roads to have an insurance policy that helps them manage the costs associated with repairing the vehicle or treating the injured people in the accident.

How to choose the right car insurance plan?

Here is a simple step-by-step process for buying car insurance in India:

  • Every state has different car insurance requirements. Hence, ensure that you check them before looking for a policy.
  • If you are taking a car loan, then check with the lender about the insurance requirements. While a third-party liability cover is mandatory, some lenders ask for a comprehensive cover as a precondition to sanctioning the loan.
  • Assess the place you live, weather conditions, parking and driving conditions, etc. to determine the possibilities of accidents or mishaps and choose a policy and/or add-on accordingly.
  • Research your options. All car insurers offer online quotes. Compare them and find the one that offers the best coverage at the lowest premium. While comparing policies, make sure that you include the essential add-ons and then look at the premium amount.
  • Check reviews, look at the claim settlement process, and prefer insurers with a high claim settlement ratio.
  • Visit the insurer’s website and submit your application along with the required documents.

Documents required while purchasing car insurance

While it might vary with the insurance company, this is a usual list of documents that you will need while buying car insurance:

Proof of Identity

You will need to submit any one of the following documents to establish your identity:

  1. Aadhaar Card
  2. Passport
  3. Driving License
  4. PAN Card
  5. Any Photo ID issued by the Government

Proof of Address

You will also need to submit one of the following documents as proof of address:

  1. Passport
  2. Driving License
  3. Any address proof issued by the Government
  4. Passbook (bank or post office)

You also need to submit these documents:

  • Registration Certificate (RC) of the car
  • Your driving license
  • A recent photograph

If you are applying for the policy online, then some insurers might ask you to upload these documents while others might simply want the document identification numbers (passport number, driving license number, etc.). However, you must ensure that you have these documents handy since you will need them during the claims process.

Documents needed while filing a car insurance claim

Here is a list of documents that you will need while filing a claim. Remember, this list can change based on your insurer.

  • Completed claim form
  • Policy Certificate
  • Registration Certificate of your car
  • Driving license of the person driving the car at the time of the accident
  • If there is a police case, then a copy of the First Information Report (FIR)
  • If the car is undergoing repairs, then the original estimate of the repair cost
  • Any receipts that need to be reimbursed

The insurer might ask for more documents based on the claim. Ensure that you read the policy document carefully to understand the entire claims process and the documents that you might need before buying the policy. For example, you need to know if the car gets stolen, then how much time the insurer will wait for the police to recover the vehicle before settling your claim.

Summing Up

A car insurance policy offers financial protection against damages or losses arising out of accidents or mishaps. Insurers offer a range of add-ons to help you customize the policy based on your requirements. Ensure that you choose the right add-ons and understand the documents that you will be required to submit while filing a claim under any of the add-ons. While buying car insurance is mandatory, we recommend vehicle owners to choose a policy that can benefit them rather than buying a basic policy for regulatory requirements. Opt for major insurance companies like Tata AIG that offer comprehensive protection, a host of attractive add-ons, high claim settlement ratio and seamless claim process. Make the right decision and get the protection you deserve. Good Luck!

Bernard