Motor Insurance

Motor Insurance: Accounts for a major portion of the insurance industry. This is a tariff
class of business. Tariff rate have been revised on 1st July 2002. For the purpose of insurance,
motor vehicles are classified into 4 – broad categories.

1. Private Car
2. Motorcycle & Motor Scooter
3. Commercial Vehicles Further classified as :-
i. Goods Carrying Vehicles
ii. Passenger Carrying Vehicles
iii. Motorized Rickshaws
iv. Taxis
v. Buses
4. Miscellaneous Vehicles e.g. –
i. Hearses
ii. Ambulances
iii. Mobile Dispensaries
iv. Cinema Film Recording & Publicity Van , etc….

TYPES OF POLICIES:
For all classes of vehicles, there are two types of policy :

1. Liability Only Policy: Motor Vehicle Act passed in 1939 and further amended in 1988. In
old days many pedestrian knocked down, injured and even killed did not get any
compensation. To safe guard the interest of public MV Act was introduced as compulsory
insurance. Now no vehicle can ply in public place without ‘Act Liability Insurance’.
Following are compulsorily covered under Liability Only Policy:
i. Any liability incurred by the insured in respect of death or bodily injury of any
person including owner of the goods or his authorized representatives carried in
the carriage or vehicle.
ii. Liability incurred in respect of damage to any property of a third party.
iii. Liability incurred in respect of death or bodily injury of any passenger of a public
service vehicle.
iv. Liability arising under Workmen’s Compensation Act, 1923 in respect of death or
bodily injury of :
a) Paid driver to the vehicle.
b) Conductor or ticket examiner (public service vehicle).
c) Workers, carried in a goods vehicle.
 d) Liability in respect of death or bodily injury of passenger who are carried
for hire or reward or by reason of or in pursuance of contract of
employment.

The policy of insurance should cover the liability incurred in respect of any one accident
as follows:
i. In respect of damage to any property of third party:- Limit of Rs. 6,000/- .
ii. The liability in respect to death of or bodily injury to any passenger of a public
service vehicle in a public place is the amount of liability incurred (without limit).
Section 140 of the Motor Vehicle Act 1988, Provides the liability of the owner of
the Motor Vehicle to pay compensation in certain cases, on the principle of ‘No
Fault’. The amount of compensation, so payable, is Rs. 50,000/- for death and Rs.
25,000/- for permanent disablement of any person resulting from an accident
arising out of the use of the motor vehicle.

2. Package Policy: This policy covers all the inclusions of the Liability Only Policy with
including some extra covers and damages to vehicle like as follows:
Inclusions
i. Fire, explosion, self ignition and lightning.
ii. Riot and strike.
iii. Earthquake (fire and shock damage).
iv. Malicious act.
v. Terrorist activity.
vi. Landslide, rockslide.
vii. Burglary, house breaking or theft.
viii. Accidental external means.
ix. Transit by road, rail, inland waterway lift, elevator or air.
x. Flood , typhoon , hurricane , storm , tempest , inundation , cyclone , hailstorm
, frost .
Exclusion
i. Depreciation.
ii. Wear and tear.
iii. Consequential loss.
iv. Mechanical or electrical breakdown. Failure or breakage.
v. Loss when the vehicle is driven under the influence of intoxicating liquor or drug
vi. Damage to tyre unless vehicle is damaged at the same time (then 50% of the cost
of replacement is payable).
What Bajaj Allianz Provides Under Motor Insurance?

Get an online insurance quote from Bajaj Allianz for a comprehensive Package for your car and
other vehicle insurance. We have a car insurance to suit your needs. We pride ourselves on our
claims service , choose Bajaj Allianz Motor Insurance for your car and other type of vehicle and
you can be sure that we will be there for your convenience whenever you need us ; 24x7 .

Features.
1. Assured best deals on your Motor Insurance.
2. Fair and faster claims settlement.
3. Discount on back to back accident free years.
4. Instant online renewal and issuance of your Motor Policy.
5. Quick service on breakdown / accident with instant claim status updates.
6. 24x7 customer assistance for all product queries and claims information.
7. Instant claims status via SMS.

Benefits .
1. Huge saving with a comprehensive coverage for your vehicle.
2. Cashless claims over 1500 Preferred Bajaj Allianz workshops in India , 75% on account
payment when cashless facility is not available.
3. Transfer your existing ‘No Claim Bonus’ from any insurance provider ranging from 20%
- 50%.
4. 0% EMI option available on payment through Citibank Credit Card.
5. Towing facility in an event of a breakdown / accident.
6. 24x7 service by phone or online-even on holidays.
7. Carry your fortune for being a safe driver and earn discounts on ‘Own Damage’ premium
for back to back accident free years on an existing car or on any car which you upgrade.
Bajaj Allianz Car Insurance
Overview
Bajaj Allianz Car insurance by Bajaj Allianz General Insurance Company Limited is a joint
venture between Bajaj Finserv Limited and Allianz SE. The company has been a leader in the car
insurance market with world-class products, efficient service and after-sales support. The
company has been offering various types of insurance plans both in the Life Insurance category
and General Insurance category. Car insurance that the company offers falls under the category
of Motor Insurance plans offered. Car insurance plans, as compulsory under the law, are offered
with extra additions at the discretion of the customer who can make additions to increase the
scope of coverage extended on his car. Why is a car insurance policy must? Though the legal
requirements bind you to buy a car insurance plan and also keep on renewing it year on year if
you want to legally drive your car, you should also consider the importance of having such a
policy besides its legal implications. Accidents are uncertain and might happen with anyone.
Any single case of accident causes huge financial loss by harming you, your vehicle and also any
third party. This loss has the potential to wipe out your savings. Having an insurance policy
which would compensate the financial losses would help in safeguarding your savings and also
paying off any aggrieved third party of the damages they incur. Bajaj Allianz car insurance can
be one of the best option while choosing your car insurance.

Bajaj Allianz Car Insurance Plan at a Glance

Features Coverage and Benefits

Third Party Coverage: Upto 7.5 L
Incurred claim ratio: 69.19%
Personal Accident Insurance: Yes
Network Garages: 4000+ network garages.
No Claim Bonus Up to 50% of existing policy
Bajaj Allianz Car Insurance Premium Calculator
This policy can be compared online by individuals visiting the company website as well
to buy the car insurance policy online.
Premium for a Bajaj Allianz car Insurance policy depends on a number of factors like
IDV, i.e. Insured Declared Value of the car, the make and model of the car, year of
purchase and registration, the city, etc.
 A has bought a new BMW model 1 Series car in the current year and as per the
mandatory laws seek to insure the car. He approaches Bajaj Allianz Car Insurance
Company to buy a comprehensive plan for his dream car. The Premium works out
to be Rs.57, 371 for an Insured Declared Value of Rs.18.81 lakhs
 B buys a second-hand car from a car reseller online for a good price. The car he
buys is a Chevrolet Cruze 2.00 Ltr which was initially registered in the year 2011.
The company charges a premium of Rs.16,389 at an Insured Declared Value of
Rs.564, 470
 C buys a new Honda Amaze for his wife as a 25th Anniversary present. To get an
insurance coverage, he approaches Bajaj Allianz and seeks out the premium
chargeable. Using the Premium Calculator provided by the company, C find s out
that the premium for his new car would be Rs.16, 863 for an Insured Declared
Value of Rs.498,556.

The table tabulates the above data for an instant reference

Applicant Type of Vehicle Insured Declared Value Premium
A BMW Series 1 18,81,000 57,371

B Chevrolet Cruze 2.00 564,470 16,389

Ltr.
C Honda Amaze 498,556 16,863
HDFC ERGO Car Insurance Policy
Overview
HDFC ERGO Car Insurance provided by HDFC ERGO General Insurance Company Ltd, which
is a joint venture (JV) between a leading housing finance firm in India - HDFC Limited and
ERGO International AG, vital part of Munich Re Group. HDFC Limited owns 74 per cent
shares, while ERGO International AG owns 26 per cent shares in the company. A complete
range of general insurance products are provided from Health, Mediclaim, Home, Motor,
Personal Accident and Travel insurance. Further they offer a wide range of bespoke products
such as Marine, Property, and Liability Insurance in Corporate Level. At HDFC Ergo, their car
insurance policies and products are innovated in such a manner to fulfill their Endeavour to keep
life as normal despite the shortcomings that come to you.

HDFC ERGO car insurance continuously tries to upgrade itself and cater to the needs of every
individual in the fast moving world. They try doing the same by excellent customer support
service that too automated. It is aiming to expand its network across the country and currently it
has 109 branches 89 cities with over 1900 employees. It surely has a robust distribution network
which includes brokers, retail, corporate agents, bank assurance and of course its own direct
sales team. ICRA recognized the highest claim-paying ability of HDFC ERGO and assigned the
company AAA rating based on that. It has also been awarded the ISO certification for their claim
services, policy issuance, customer servicing and seamless Information Security processes being
followed at all their offices.

The HDFC car insurance company seeks to have a vision of becoming the most admired
insurance firm in India, enabling its customers to progress, thereby responding to their needs
preferences and necessities constantly. The set of values that they follow is SEED - Sensitivity -
building the business on empathy and the effort to understand the needs of both internal and
external customers, Excellence- strive to bring about more innovative products and set new
benchmarks for themselves, Ethics- fulfill the commitments and maintain transparency,
Dynamism - the “can-do “approach. Ethical approach and maintain high levels of integrity.

Feature Specification
Third Party Up to 7.5 Lakhs
Coverage
Network 6800+ Cashless Network Garages Across India
Garages
Claim Ratio 90.35% (For year 2014-2015)
Coverage In addition to the basic cover, the insurer also offers depreciation cover,
Offered road side assistance, emergency assistance add-ons, etc.
HDFC ERGO Car Insurance Plans

HDFC ERGO Car Insurance offers comprehensive insurance coverage and the full value for
money. Apart from insurance coverage, it gives you the much-needed peace of mind. Following
are the additional covers that you can opt for to enjoy the highest insurance benefits.

HDFC ERGO Car Insurance Gold Policy

The HDFC ERGO Gold policy covers loss of use or downtime protection and zero depreciation.
The features of this rider are mentioned below

Add-On Gold Plan

Zero Depreciation Yes

Loss of Use Protection Yes

Gear box & engine No

No claim Bonus protection No

Consumables expenses No

Insurance Comparison

Best Car Insurance Companies with Claim Settlement Ratio 2018

Insurance Company Incurred Claim Ratio Grievances Settled
Bajaj Allianz General 62.20% 99.28
Insurance
HDFC ERGO General 84.37% 100
Insurance
 Third Cashless Add On Special Features Exceptions
Insurer Party Network Covers
Cover Garages

Upto 
4000 and Default:  RSA and Lock &  RSA cover
7.5L for more
third Roadside Key included in all available for
party Assistance policies by default vehicles
property plan (RSA)* upto 15
damage Instant Policy
 Key & Lock Issuance years old
replacement  Receive Instant  Lock & Key
 Optional: Claims Assistance cover
Zero and SMS updates available for
Depreciation on your motor vehicles
(ZD) claim status upto 10
years old
Bajaj Allianz car Insurance  Engine through 24x7 call-
Protector centers.  ZD and
Engine
 PA for
Protector
Passenger
available till
 Electrical and 5 years old
Non
Electrical
Accessories

Upto 6800+  Zero  Unlimited claims  ZD plan

7.5L for
third Depreciation for ZD plan in a available for
party (ZD) year! vehicles
property
damage  Roadside  Occupation and upto 5 years
Assistance Age discounts old; require
plan (RSA) available previous
insurance
 Engine  Comprehensive
also to have
Protector support through our
ZD Engine
 PA for dedicated customer
Protector is
HDFC Ergo Car Insurance Plan support team
Passenger available for
 Electrical and vehicles
Non upto 2 years
Electrical old
Accessories
Term Insurance Term
Insurance premiums are economical with respect to the higher coverage amount it offers. Secure
your family's future take the most important decision of tomorrow, TODAY. Make Term
Insurance your best friend and protect your family.

What is Term Insurance?

Term Insurance is a life insurance plan that provides financial coverage to the beneficiary of the
insured person for a defined period of time. In the event of death of term insurance policyholder
during policy term, the beneficiary can claim death benefits from the insurance company. The
death benefit is payable to the nominee or beneficiary who is usually a family member. You can
choose to get a lump-sum amount or a combination of lump-sum and monthly amount as per
your requirement. Some Insurance Companies also cover permanent or partial disability wherein
the policyholder's regular income is disrupted.

Note: In case of survival of the policyholder the coverage at the earlier rate of premiums is not
guaranteed after the expiry of the policy. The buyer has to either obtain extended coverage with
different payment condition or forgo the coverage entirely.
Benefits of Term Insurance Plan
 Get lumpsum amount in the event sudden death
 See off all your loans and liabilities
 Provide money so that your family continues to live with pride
 Term Insurance also takes care of family in case of your disability or critical illness:
 Provides supplementary income in case of loss of income due to accidental disability or
illness
 Get lumpsum amount if diagnosed with critical illness
 Additional sum insured in case of accidental death.
Bajaj Allianz Term Plan

Bajaj Allianz offers a range of term plans to suit the needs of every individual whether it is for
pure protection purposes or for securing loans. Let us consider the range of term plans offered by
Bajaj Allianz Life Insurance Company and the aspects of each.

Bajaj Allianz Term Plan:

Life Style SecureA term plan with enhanced benefits on death and terminal illnesses. The
features of This Bajaj Allianz term plan are as follows:

 On death or terminal illness of the insured during the policy tenure, the Sum Assured is
given in equated monthly instalments for such time which will be equal to the term of the
plan chosen.
 Rebates in premium for choosing higher levels of coverage above Rs.3 lakhs.
 The premiums paid are exempt from taxation under Section 80C of the Income Tax Act
and the claim received in exempt under Section 10(10D) of the Income Tax Act.

Eligibility Details

Minimum Maximum

Entry Age 18 years 50 years

Maturity Age 23 years 60 years

Policy Term 5 years 20 years

Sum Assured Rs.3 lakhs Rs.15 lakhs

Annual Premium Amount Rs.1466 Rs.20, 458

Premium Payment Term Equal to policy term

Premium Payment Yearly, half-yearly, quarterly or monthly

Frequency
Future Generali Term Plan Insurance
Future Generali Life Insurance offers two types of term insurance plans to its customers. While
one plan is available online, the other can be bought through other channels. Let us take a look at
the term plans available with the company.