A private car insurance policy covers your car against financial losses that you may face in case of accident or theft of car. You pay a certain amount as a premium to the insurance company to buy this cover, and they in return agree to pay for accidental damages and theft losses if they arise. As per IRDA (Insurance Regulatory and Development Authority), it is compulsory for any vehicle running on Indian roads to be covered under an active car insurance policy.

Features and Benefits
Legal Requirement

As per the Indian Motors Vehicle Act, third party insurance is mandatory on all the vehicles. Along with that, buying comprehensive car insurance helps you to remain in compliance of regulations and set your mind free too.
Accidental Coverage

If your car meets with an accident, you can simply claim insurance and bear the expenses without shedding loads of money from your own pocket.
Safety Against Natural Disasters

If your car is damaged due to flood, fire or earthquake, your car insurance policy will come in handy to claim for the damages.
Cover Against Theft and Vandalism

Comprehensive car insurance provides you cover against theft and vandalism. You can get your hard-earned money back if your car gets stolen.
No Claim Bonus

In case no loss arises, you get rewarded a No Claim Bonus (NCB) for not filing any car insurance claim that year. This makes your car insurance renewal premium cheaper.

Add-on Covers

Add-on is an additional benefit added to your car policy which covers the car against unforeseen expenses. Add-ons, also known as riders, can be included in your insurance policy by paying extra premium.

There are various types of add-ons offered by insurance companies listed as follows, but you should select the one according to your specific requirements.

Zero Depreciation Claim
No Claim Bonus Protection
Return to Invoice
Cost of consumables
Repair of Glass, Fiber, Plastic and Rubber Parts
Roadside Assistance cover
Daily Allowance
Engine & Gearbox
Loss of Personal Belongings

Factors Determining Premium

Following are key factors that determine the premium of a car insurance policy

Car Model and Variant
Year of Manufacture/ IDV (Insured Declared Value)
Fuel type (Petrol / Diesel / CNG / LPG)
CC (Cubic Capacity of Engine)
Registration Zone (Zone A- Delhi, Kolkata, Mumbai, Chennai, Ahmadabad, Pune, Bangalore, Hyderabad Zone B- Rest of India)
NCB (No Claim Bonus)
Additional Covers like Zero Depreciation, Key Loss etc.

Exclusions: What is Not Covered

Your car insurance policy covers you against financial losses that may occur during an accident or theft. However, there are certain events, which your policy may not cover:

Occurrence of loss or damage when the insurance policy has expired or not active.
Regular wear and tear of the car and its parts
Usual depreciation of the car
If the person driving the car does not possess a valid driving license
Electrical or mechanical breakdown
If the person driving is found to be under the influence of liquor/alcohol/drugs
Loss or damage as a result of war /mutiny /nuclear risks
Damage to engine due to oil leakage
If the car faces a mishap while being driven outside India
If the car is used for any other purpose other than its intended use such as speed testing, racing etc.

Claims Process

In the event of a loss, following are key points on how to claim your car insurance:

Keep the copies of your insurance paperwork up to date and intact. They are critical documents that can get you your claim.
Assess and record the damage done to the car
File an FIR incase of an accident or theft. It is mandatory in a third party liability claim to file an FIR
Intimate the insurance company at the earliest
Extend full cooperation to the insurer and the surveyor appointed for completion of the survey work and for proper assessment of the loss.
Provide "proof of damage" form as well as records relating to your claim (such as medical bills, car repair bills and a copy of the FIR).
Present accurate and validated information to the representative which is the right thing to do for claiming the insurance.