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Insurance policies are among the biggest investments people make on a yearly basis. Among the different types available, health, house, and motor insurance are the most important as they command the highest expense. Insurance policies on these assets act as shields that protect the policyholder from any unexpected financial troubles arising from them.
This coverage comes at a premium that is paid to the insurance company in exchange for the insurance. The amount can either be paid on a monthly, bi-yearly, yearly or on a basis of a pre-decided time interval.
If you are considering buying / renewing your car insurance, here are some points to help you choose the right insurance policy that provides the maximum benefit while being easy on your pocket. Let's Explore!
Types Of Motor Insurance
Insurance companies in India, under the guidance of IRDAI, offer two types of policies to ensure two-wheelers, four-wheelers and commercial vehicles. This includes Third-Party Insurance and Comprehensive Insurance.
A third-party insurance cover is for anyone else apart from the policyholder and the insurer. This type of policy protects the holder from legal liabilities and hefty fines from a third-party in case of an accident.
The premium for third-party insurance policies is decided each year by the insurance regulator for each category and segment of vehicles.
Comprehensive Car Insurance
A Comprehensive car insurance policy, as the name suggests, covers a wide variety of things. This includes coverage for the car and the insured person in case of any accident, theft, natural disaster and anything else. A comprehensive policy also includes third-party insurance as well.
As the coverage is more than just third-party coverage, insurance companies are allowed to come up with their own premium for these policies, which is more than just the third-party insurance premium.
Here are some of the basic differences between the two:
|Third-Party Insurance||Comprehensive Insurance|
|Covers accidental insurance only to third-party||Covers accidental insurance for both policyholder and third-party|
|Applicable only to damages caused by the policyholder||Applicable to damages caused by man-made & natural calamities|
|Inexpensive with low premiums||Comparatively high initial cost with high premiums|
One major deciding factor for the premium for the comprehensive policies is the Insured Declared Value of the vehicle.
IDV or Insured Declared Value
IDV in simple terms is the current market value of a car. It is defined as the assured compensation amount that the insurer will pay in case the vehicle is stolen, damaged or confirmed to be a total loss. IDV is calculated by subtracting the depreciation value of the car from its listed selling price. The registration and insurance costs are not considered during IDV calculations; while non-factory fitted accessories added on the car can be considered separately.
The IDV of a car directly determines the maximum coverage that the insurer can provide to the policyholder. The IDV value also determines the insurance premium payable as well. The general rule is; higher the IDV value, higher the premium payable.
Bajaj Allianz is a well-known insurance provider who promises to provide the best insurance advice and insurance policies to its customers. The company offers a number of customisable options on policies as well, allowing customers to get maximum benefits, while also receiving the highest insurance coverage.
About Bajaj Allianz
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited and Allianz SE. The company received the IRDA (Insurance Regulatory & Development Authority) certificate of registration in May 2001 and since then, Bajaj Allianz has been one of the leading financially robust insurance companies in the country.
The company offers some of the simplest and most flexible insurance policies to its customers. The car insurance policies offered by Bajaj Allianz are customisable to suit the needs of every car owner and their requirements.
Bajaj Allianz also offers a wide range of insurance plans, ranging from premium comprehensive policies to flexible and cost-effective third party car insurance covers. While there are a wide variety of insurance plans on offer, Bajaj Allianz promises to offer each of their customers with a host of benefits as well.
Some of the key features and benefits on offer:
- 4000+ Network Garages
- Motor On-the-Spot
- 24x7 Spot Assistance
- Ease of Purchase & Renewal Online
- Zero Depreciation
All insurance policies on offer by Bajaj Allianz promise to cover the following set of points.
- Loss due to natural calamity
- Loss due to man-made calamities
- Personal Accident Cover
- Third-Party Legal Liability
However, there are a few exclusions as well:
- Depreciation from general wear & tear
- Influence of Substance
- Invalid License
- War, Mutiny & Nuclear Risk
Add-On Covers by Bajaj Allianz
Bajaj Allianz also offers a number of separate add-on covers. These add-ons come with an additional cost over the chosen insurance policy. Some of the add-on covers on offer by Bajaj Allianz include:
- Depreciation Shield
- Engine Protector
- Consumable Expenses
- Conveyance Benefit
- Lock & Key Replacement
- 24x7 Spot Assistance
- Personal Baggage
1. How is Car Insurance Premium Calculated?
A Car Insurance policy relies on various factors: age of the car, type of car, cubic capacity of a car engine, other insurance terms, geographical location among others. For comprehensive car insurance policies, the main factor on which the premium and coverage is determined is the car's IDV value.
The IDV value helps determine the maximum amount the car can be insured for. Along with the coverage, the IDV value also determines the premium payable by the insured for the agreed coverage. Hence, the higher the IDV value, the better the coverage.
2. What are the documents required to claim the insurance?
Bajaj Allianz offers simple and easy ways to claim your insurance in case of any unfortunate event. As per the process, customers will have to produce the following documents:
- A fully-filled Claim Form, which has been duly signed.
- A valid copy of the vehicles Registration Certificate (RC) for verification
- Copy of valid Driving License
- Copy of the Insurance Policy
- Copy of the FIR (if applicable)
- Original repair bill and proof of release and cash receipt
3. How to renew car insurance policy?
Bajaj Allianz offers the most simple and easiest way for car insurance renewal online. The insurance policy can be renewed in just a few minutes, by entering basic details of the customer and the previous policy number.
So in essence, motor vehicle insurance is an important document and cover to have for one's vehicle. Comprehensive insurance basically covers most things one can think of like accidents, theft, and natural disasters; and also includes the basic cover for damages to other vehicles that third-party insurance offers.
While we recommend a fully comprehensive insurance plan, we advise you to speak with a subject matter expert from Bajaj Allianz to understand the best insurance for your four-wheeler.