Here are detailed FAQs about car insurance in India:
1.What is car insurance?
Car insurance is a contract between the policyholder and the insurer to financially protect against losses due to vehicle accidents, theft, or third-party liabilities while driving on the road.
2. Is car insurance mandatory in India?
Yes, it is legally mandatory under the Motor Vehicles Act, 1988, to have at least a third-party insurance policy to cover liabilities towards others.
3. What is a car insurance premium?
It is the amount paid by the policyholder, usually annually, to the insurer in exchange for coverage. The premium depends on vehicle type, age, location, coverage, and other risk factors.
4. Are old cars required to have insurance?
Yes, all cars regardless of age must have insurance to be driven legally on Indian roads. Older cars often pay lower premiums due to reduced market value.
5. Do electric, CNG, or LPG vehicles require insurance?
Yes, insurance is required for all vehicle types including electric and CNG/LPG cars, though premiums may slightly differ.
6. What types of car insurance are available?
Mainly two types: Third-party insurance (mandatory, covers only third-party liabilities) and Comprehensive insurance (covers third-party liabilities plus damages to your own vehicle).
7. Can premiums be paid in installments?
No, full premium payment is required upfront as per Insurance Act, 1938 regulations.
8. What is a deductible in car insurance?
It is the portion of a claim amount that the policyholder must pay out-of-pocket before insurance coverage applies. Some deductibles are compulsory, some can be chosen voluntarily to reduce premium.
9. What is No Claim Bonus (NCB)?
NCB is a discount rewarded for claim-free years on your policy, which can reduce premiums significantly on renewal.
10. How to claim car insurance?
Notify insurer immediately, file FIR if needed, document damage, submit claim form with required documents, get surveyor inspection, and follow insurer’s repair process.
11. Can I transfer insurance when selling my car?
Third-party insurance can be transferred to the new owner by submitting an application within 14 days of the sale.
12. What is zero depreciation cover?
It is an add-on that allows claiming full repair/replacement costs without deducting depreciation, ideal for new vehicles.
13. How long is insurance valid?
Usually one year, renewable annually. Multi-year policies are also available.
14. What factors affect premiums?
Vehicle type, insured declared value (IDV), location, age, claim history, add-ons, and coverage type.
15. Are passengers covered?
Passengers including paid drivers can be covered under personal accident cover by paying additional premium.
-These FAQs cover general queries and provide a comprehensive understanding of car insurance for policyholders in India
