Auto Insurance
History of Auto Insurance
Upcoming Cars in 2012
Aston Martin One77 Car
BMW Growth
BMW Cars ShowRoom
Ducati Monster795 Bikes
Bajaj KTM 200 Bikes
Aprilia RSV4 Bikes
Harley Davidson Bikes
Triumph Bikes
RE Thunderbird500 Bikes
BMW Bikes
Rolls Royce Cars
Sponsored Links
Vehicle Maintenance Tips
Maruti Suzuki Ertiga Cars
Audi Q3 SUV Car
Renault Duster SUV
Ford EcoSport SUV
Mahindra Korando SUV
Mahindra Rexton SUV
Maruti Suzuki XA Alpha SUV
Home >> Auto Insurance In India

Auto Insurance In India

Indian insurance companies provide accident cover for owners of the vehicle while driving, passengers and also for third party legal liability. Now some of the General Insurance Companies offer online insurance service also. Auto Insurance in India is a mandatory requirement for all new and old automobile vehicles used for personal use or commercial. The insurance companies have tie-ups with leading automobile manufacturers for instant insurance of new vehicles.

Types of Auto Insurance in India

There are 3 different types of Auto Insurance in India:
a. Private Car Insurance - In India Car Insurance is compulsory for all the new as well as cars.

b. Two Wheeler Insurance - The Two Wheeler Insurance in India covers accidental insurance for the drivers of the vehicle. Insurance of two wheeler is also mandatory in India.

c. Commercial Vehicle Insurance - Commercial Vehicle Insurance in India provides cover for all the vehicles which are not used for personal purposes, like the Trucks, LCVs, HMVs etc.
The auto insurance generally includes: Loss or damage by accident, fire, lightning, self ignition, external explosion, burglary, housebreaking or theft, malicious act, liability for third party-injury/death, third party property and liability to paid driver, loss/damage to electrical/electronic accessories. Liability for third party and liability to paid driver is covered on payment of appropriate additional premium only.

The auto insurance does not include: 1). Consequential loss, depreciation, mechanical and electrical breakdown, failure or breakage 2). When vehicle is used outside the India 3). War or nuclear perils and 4). Drunken driving

Insurance premium is determined by a number of factors such as price of the vehicle, age of the vehicle, clauses of coverage, state where the vehicle is registered etc. Third party insurance is available on payment of additional premium. One can purchase third party policy only but by all means it is better to go for a comprehensive insurance policy. Each type of policy has its own peculiarity, cost and importance:

1. Comprehensive Auto Insurance Policy - This policy is the most expensive but one must take comprehensive insurance because it covers all sorts of cases such as theft, accident, wear & tear etc. and third party liability also. There are some of the insurance companies that do not insure full value of the vehicle. While taking a comprehensive insurance policy one must ensure that vehicle is insured at its 100% value.

2. Third Party, Fire and Theft - this type of insurance policy like comprehensive one but not identical to it. Like the latter the former covers cases of theft, accident, fire etc. but in case of an accident you can receive compensation only when you are not at fault and hit another car i.e., if any other car hits yours or you by mistake bang t in the garage, the insurance company will not come to your rescue.

3. Third Party Insurance - it is the cheapest insurance policy that covers only cases of accident where you are at fault and hit a third party.. This insurance policy is generally preferred by those who own a very old vehicle.

4. Specialized Car Insurance - is basically for vintage/classic cars that are at least 25 years old. These cars have their requirements and services. The classic car insurance policy is as good as the comprehensive policy but the only drawback is that the policy holder can drive the car to a limited number of road miles in a year (during insurance coverage period).

Auto Insurance Policy Purchase

To purchase an Auto Insurance Policy in India certain documents are required like copy of Registration Certificate of the vehicle, identity and address proof of the owner.

Auto Insurance Policy Claim

For claim also original insurance policy and estimate, Copy of RC of the vehicle, Driving license, FIR is to be submitted along with duly signed claim form.

With the auto revolution in India and growing Indian economy Auto Insurance Industry has also witnessed a rapid growth that’s why private sector has also participating aggressively in this venture. Now there are both private and public sector companies in the insurance business. At present it is a buyers’ market as such Insurance companies have started credit ratings of their policyholders to determine risk. Vehicle owners with good scores will have to pay lower insurance premiums, as it is assumed that they are more responsible and financially sound to maintain their vehicles better.