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Available Features of Car insurance Policies in India An Insight

Car insurance provides extensive coverage to the motor vehicles against possible losses. Car insurance India covers several unavoidable conditions that may snatch the ‘4 wheeled pride’ from its owner or take away precious life. The reach of the car insurance policy coverage as offered by Indian companies is vast and includes a range of considerations, ranging from the vehicle to its owner. Even the 3rd party who is associated in a liability reading the car also enjoy insurance coverage. The car insurance customers are eligible to shift their existing 'No Claim Bonus' from any insurance company. In this case the bonus may range between 20% - 50%.


Indian car insurance policy coverage generally touches upon the following aspects:


A) Car Damage:

The car insurance India policy covers loss or damage to vehicle due to:


1) Man-made calamities:

  • Accident (besides damage caused due to fire and lightening)
  • Self-ignition, explosion-related damage
  • Pilferage
  • Riot and strike, malicious act, terrorism
  • Damage caused to the car during its transport by rail, road, air and elevator


2) Natural calamities:

  • Earthquake
  • Flood
  • Landslide
  • Frost
  • Cyclone
  • Inundation


B) Personal Accident Insurance Facility

This comprehensive policy aims at providing insurance coverage to the policy holder. It is considered when the car in which he/she was travelling encountered any accident on the road. Apart from it, third party car insurance coverage is also taken into consideration.


*Third Party Liability:

Under this liability, mandatory coverage needs to be taken by all vehicle owners, according to the Indian Motor Vehicle Act (against Act Risks as per Section 146 of Motor Vehicles Act 1988). Its purview is to pay compensation for death as a direct effect of the accident to third parties. It also takes into consideration any damage caused to the third party’s property (minus the damage caused to the car).

  • Extends liability for 3rd party accident related injury or death
  • Provides extensive 3rd party property-related damage (excluding damage caused to the owner’s vehicle)


Different Indian car insurance companies offer some additional benefits as per their individual company policies. Take the example of Bajaj Allianz car insurance. Its additional personal accidents coverage is quite popular among the car driver as well as the co-passengers. It offers coverage for personal accidents for both unnamed and named passengers beside the paid driver. The maximum monetary coverage for each individual is Rs.2 lakhs. It also provides legal liability to the driver.


Bajaj car insurance provision provides personal accident coverage of Rs. 1 lakh for the individual owner or the driver of the car who was driving the vehicle and met with an accident. Co-passengers can also be included under the gambit of optional personal accident coverage.


Some unique features of Maruti car insurance:

  • The policy holder is allowed to alter the computer calculated IDV (Insured's declared value) up to 5%. Going beyond this may affect the claim process.
  • If the policy holder is an active member of an Automobile Association then he/she is entitled to get Rs. 200 on personal car.
  • Installing anti-burglary mechanism in the car attracts Rs. 500 discount.


Some unique features of HDFC car insurance (HDFC ERGO):

1) Age-related attractive discount:

  • Insured person in the age group of 36-45 years receives 5 % discount on the Own Damage Section as per the HDFC car insurance policy.
  • Insured person in the age group of 46- 60 years receives 10 % discount on the Own Damage Section as per the HDFC car insurance policy.


2) Profession-related discount:

  • Insured individuals under certain profession-groups are entitled to receive 5 percent discount on the Own Damage Section. They are as follow:
  • Qualified and practicing Chartered Accountant
  • Defence and paramilitary personnel
  • Teachers employed in Government recognized educational institutions either at school level or centres of higher education
  • Government employees (Central / State Government departments)
  • Qualified medical practitioners registered with any Government recognized Medical Council


The car insurance premium mainly relies upon specific parameters, including policy holder’s gender, age, and vehicle type and so on. Car insurance India instils a sense of confidence into the mind of the vehicle owners and their drivers. However, it does not give license for reckless driving.


Majority of the Indian car insurance companies offer 24/7 service by phone-facility besides extending web-based support on all days, including both weekdays, weekends and national holidays. The customers are offered with Instant claims assistance facility. With the advent of mobile phone, things have become easier for the customers in general. They can get hand to instant updates of claim status through SMS facility besides the nation-wide 24/7 call centres. Several companies, such as Bajaj Allianz also offer towing facility if there is any mishap or vehicle breakdown on the road.

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