IRDA to Increase Third-Party Motor Insurance Premiums

Premium for third-party motor insurance cover that provides protection against damage, injury, death of a third person and/or damage to his/her property caused by your vehicle has recently got a steep jump. The effective rate announced by the Insurance Regulatory and Development Authority of India (IRDAI,) has been effective from 1st April this year.

A typical motor insurance policy has two types – (1) Damage to Own Vehicle, and (2) Third-party Cover.

Damage to Own Vehicle – This is, of course, provide cover for damage to your vehicle. According to the current law, the insurance companies have the freedom to determine the premium for the same. However, the insurance regulator has not made this ‘own-damage cover’ a compulsory cover.

Third-party Cover – This type of your vehicle insurance policy covers injury/death of a third person and/or damage to his/her property caused by your vehicle. The premium for this cover is decided by IRDAI making ‘third-party cover’ mandatory.

The regulator takes into account various factors to arrive at a suitable third-party insurance premium for variety of vehicles. It includes frequency of claims you made during previous year, average claim amount, expenditure involved in servicing the policy and cost inflation index etc.

In accordance with that, the regulator has announced the new premium rates with effect from 1st April, 2015. For the third-party insurance cover, premium rates will apply as follows:

Private vehicle with engine capacity up to 1000Cc: Rs.1468; earlier it was Rs.1129

Private vehicle with engine capacity from 1000Cc to 1500Cc: Rs. 1598; earlier it was Rs. 1332

Private vehicle with engine capacity above 1500Cc: Rs. 4931; earlier it was Rs. 4109

For two-wheeler with engine capacity up to 75Cc : Rs.519; earlier it was Rs. 455

For two-wheeler with engine capacity from 75Cc to 150Cc : Rs. 538; earlier it was Rs. 464

For two-wheeler with engine capacity from 150Cc to 350Cc : Rs. 554; earlier it was Rs. 462

For two-wheeler with engine capacity above 350Cc : Rs.884; No change

This increment reflects an overall increase of 30 per cent for small cars and 20 per cent for medium to large cars. Previous year, the increment in premium rates was about 20 per cent across the all engine types.

While for two-wheelers this raise in premium rates ranges from 14 per cent to 20 per cent. For previous year, this was around 10 per cent.

The logic behind such huge raise in the third-party premium rates year after year, is the huge losses that the insurers suffer on account of third party insurance claims.

[Source: https://carinsuranceonline2015.wordpress.com/2016/06/02/irda-to-increase-third-party-motor-insurance-premiums/]

Motor Insurance Is Different

If you have a business and you have employees you are going to need the driving record of every employee who drives your business car or cars. This is not being intrusive it is to protect you as the business owner. You must not allow any employee who has a bad driving record to drive your company's vehicles. It is highly likely that your business motor insurance company will not permit such a person to drive the vehicle and this means you won't be covered in the event of any mishap.

It is important to remember that many employees are not as concerned about the property of others and the insurance companies know this. This is one of the reasons they regard a business vehicle driven by employees as a higher risk. An insurance company will usually want to know what the vehicle will be used for. It is never a good idea to use a vehicle for both business and personal reasons. If you do then you must inform your motor insurance company. If you don't and the vehicle is used for reasons other than specified you will not be entitled to compensation.

Business car insurance is for employee vehicles used for business, company owned vehicles and cars that are leased. If the person driving the car has less liability coverage than you do or perhaps no insurance you can be covered by your insurance company. The whole objective is for you to be covered in the event of any unforeseen mishap or accident. You can start the process of protecting your assets with a free quote. This can be done online and gives you a choice of premiums from the top rated companies applicable to you. See also Three Ways to Reduce the Cost of Young Driver Insurance.

[Source: http://information-about-insurance.blogspot.in/2009/09/car-insurance-is-different.html]

Motor Insurance Policy

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Buy or renew motor insurance policies online. Buy motor insurance policy in easy steps. Get 24x7 spot assistance cover Motor Insurance policy.

How to make car or motor insurance claim or procedure after accident in India

I had a car accident while I was in India last year albeit a minor one. You might be in a similar situation now or in future. So I’m documenting the procedure for how to make a car insurance claim or procedure after accident in India.

In contrast to what happens abroad, the driver of the other was furious and wanted to get into a fight. Thankfully it was near a busy signal and a policeman was available nearby to resolve the issue.

This is in stark contrast to what happens abroad. We just park the car on the side and wait for a policeman to come and issue a report to both parties. We make our claims based on that and that is reason we have car insurance. There is no need to get too emotional if there is no physical injury.

Putting that aside, in a country like India, owning a car is no longer an ‘owner’s pride’ kind of thing. It has become or is becoming a necessity in life. As banks are willing to lend money to help you buy your dream car, more and more people are queuing up for car loans.

But your dream vehicle can meet an unfortunate accident at any point of time. To cover these risks you need to take out a car insurance which is also known as motor insurance or auto insurance.

Car insurance claim or procedure in India

Nobody wants to get involved in a car accident. It not only ruins your entire day, it can cause multiple injuries and even deaths in some serious cases.

There is hardly any driver in India who has never got involved in a car accident throughout his life. It is true you cannot stop accidents from happening but you can be well prepared to meet the financial losses that results from an accident by buying a proper car insurance.

But before you can use that insurance money to recover your loss and back to normal as it was before the accident, there are a few dos and don’ts which should kept in mind in the process of making a car insurance claim after an accident in India.

What you should do after an accident?

An individual is full of anger and varying emotions immediately after an accident. These negative emotions will try to take control of your self.

In these trying times, you must keep your calm and try to do the following with the best of your abilities.

• You should make an attempt to prevent further accidents by keeping the flashers/emergency lights on. If the lights are not working then you should have a flashlight with you for your own safety while you wait by the side of the road. If possible place a glowing tape hazard triangle 10-20 ft behind your car.
• Even if there are no serious injuries, it is always prudent to call the police. You may need a police report to file a car insurance claim even if you are just claiming for the damage to your vehicle. The vehicle insurance renewal involved in the accident must remain where they are unless they are proving to be a hindrance to the traffic. If so, take pictures from all possible angles before moving vehicle to the side of the road.
• When the police arrive at the scene, make sure you tell the investigating officer exactly what happened. Do not speculate or guess; just tell it to the officer what you really know. Also ensure that the statements given by the other people involved in the accident are accurate as well. Try to make sure your story is heard first by the officer. Also do not admit it is your mistake openly if there is even small doubt. This can be used against you in some cases during your claim procedure.
• If there is visible damage to your car, then you use at least your cell phone camera to take a picture of those damaged areas. If you have visible injuries, photograph them also. But you should never interfere with the police investigation. If you are unable to take pictures at the accident scene, do click pictures as soon as possible before police arrives.
• Typically an investigating officer should take the name, address and telephone number of all the persons involved in the accident but if he fails to do that then it is your duty to take down the details from the people involved in the accident.
• The motor insurance company needs to be notified as soon as possible. There are many policies which require immediate reporting; so you must co-operate fully in this regard. If there are medical benefits in the insurance coverage then you must submit the accident related medical bills to the insurance company. Even better, ask for guidance on how to proceed from your insurance agent/company itself.
• Always maintain a file and keep all documents related to the accident together. The information should include all original bills, the claim number, the details of the adjuster who is handling the claim made by you, the names and contact information of all the persons, receipts of all expenses incurred due to the accident.

[Source: http://www.smartmoneygoal.in/blog/car-motor-insurance-claim-procedure-accident-in-india/#comment-3041]

Want to Shop for your motor insurance? Follow these simple tips

Getting online seems to be the new trend followed by most of the people across the world. Today, many of us stay online for almost all our day to day life requirements. Such is the craze that people wish to do everything from chatting to dating, shopping to connecting friends, executing businesses to recharge mobile phones everything so easily while on the move or at the place and time of their convenience. This way you not only save your precious time but also your valuable energy for other activities. Same is the case when it comes to buying car insurance for your car.

Today, most of the young brigade of the nation prefer buy their insurance online rather than following up with agents to get the required policy. They believe in quick, calculated and smart way of buying motor insurance online. However, it’s some of the in-experienced purchasers who make few mistakes while selecting a policy often leading it to wrong policy purchase which might not even be useful for claim at times. This can lead them in trouble in a crisis situation. So below are a few guidelines to shop for motor insurance online as safely swim towards the shore with good motor insurance policy purchase online.

Determine the Coverage

Coverage is not related to friendship. Just because your best friend purchases “X” insurance policy it doesn’t mean you also needs to purchase the “X” policy for your car. Different cars have different set of needs. Before you start your search, determine the extent of cover you want. This would ideally depend on the make and model of your car, the premium you are comfortable paying, driving habits, the distance you drive daily, any security aspects in car, place of living, parking arena etc. Proceed with your search with your requirements in mind.

Study Products well

The biggest advantage of purchasing motor insurance companies in india would be ample of time to study the details of available products well in the market. Do a thorough research on all the leading car insurance companies, their products specifications and learn all about how they function, the benefits they offer, the features they have, discounts they offer, payment flexibility, their ratings by the experts of the industry and consumers etc. This will give you a fair idea of the market offerings and you can shortlist insurers as per your requirement.

Look for discounts -

Often car insurance providers try to lure their clients with attractive discounts & offers to buy motor insurance online or retain the existing customers as well. Discounts come in different ways like particular credit/debit card payment, member of Automobile Association, No Claim bonuses, lump-sum premium payments etc. Hence, scan the internet for the best offers you can get. The discounts can make a huge difference to the premium amount you actually need to pay.

Compare quotes

Once you’re done with understanding the car insurance products and discounts associated with it, start comparing the one which you think are the best for your car. So, while looking at the right policy, try and shortlist some of the providers you think are perfect for your requirement and compare them for the features in their policy, the benefits they provide, their customer service, the premium to be paid, payment modes etc. this helps you to make a sensible decision. Ideally it should be just 3 or 4 comparison else it will be mess around to choose best policy.

The Claim Procedure

One of the important aspect of motor insurance online would be the after sale services which is your claim settlement. So, while finalizing your car insurance provider check their claim settlement record. Understand the settlement procedure and how long the process could take. Try talking to or reading the experiences of other consumers on the same. This will help to make an informed decision.

If your company lets your migrate your no claim bonus from your previous provider while switching your policy it will be a great deal for you. More importantly if these benefits are merged with other benefits it will really help in getting a cost effective motor insurance online coverage for your car.

Private Car Insurance

Private Car Insurance and Two-Wheeler Insurance can be bought online in 4 easy steps. Buy private car insurance, two-wheeler insurance online and get 24x7 motor claims support.

Why is it Important to Insure your 2nd hand vehicle?

Buying a second-hand vehicle is a difficult task as one has to consider various factors like the condition of the vehicle, price, suitability, documents, etc. However, once you have decided to bring home your vehicle, make sure you check the insurance papers. Third-party insurance is transferable while you will have to get a new comprehensive vehicle insurance policy. Remember to get the names transferred in the insurance policy papers immediately to enjoy the benefits of the policy. If the registration is transferred but the insurance is not transferred, then in case of a claim, it will not be admissible.

 Let’s have a look at some of the benefits of insuring your 2nd hand vehicle:

Covers the bills of damages to your vehicle in case of accident, theft, damage due to riots, natural calamities, etc.

Covers costs in case of injury to driver and/or other people in the vehicle.

Provides death benefit to the family in case accident results in the death of a third party.

If you transfer the No-Claim Bonus (NCB) in your name while buying the 2nd hand vehicle, it will let you enjoy the discounts on your motor insurance online. However there are certain conditions attached to the transfer of the NCB that you might have to check with the company.

And while you get all this done, here is how you can get your vehicle ready for the drive:

Clean your vehicle properly. Give it a wash. If it is a four wheeler, make sure you clean the interiors thoroughly.

Check the brakes, gear, spark plugs, etc.

Change engine oil, brake fluid, coolant, transmission fluid and all that is relevant to your vehicle.

This ensures that your car stays healthy and always ready for a smooth run. The more you keep the vehicle maintained; the better will be your driving experience.

[Source: https://www.renewbuy.com/blog/blog/insurance-2/why-is-it-important-to-insure-your-2nd-hand-vehicle/]