SUBMITTED BY: HARMEET KAUR

ROLL NO: 5815

 Vehicle insurance (also known as car
insurance, motor insurance or auto insurance)
is insurance for cars, trucks, motorcycles, and
other road vehicles.
 Its primary use is to provide financial protection
against physical damage or bodily injury
resulting from traffic collisions and
against liability that could also arise there from.
 The specific terms of vehicle insurance vary
with legal regulations in each region.
 Auto Insurance in India deals with the insurance
covers for the loss or damage caused to the
automobile or its parts due to natural and
manmade calamities.
 Two types of
Risks covered Insured Value
policies
• Comprehensive • Natural • Also called
policy disasters such Insured
• Third party as earthquake, declared value
policy flood, storm, • manufacturer’s
etc. price of the
• Man-made vehicle minus
disasters such the
as accident, depreciation
theft, fire, as per the
riots, malicious vehicle’s age.
act, etc.
 • premium would be determined
by
- What type of vehicle you own
such as model, capacity, age,
fuel type, etc.
Premium - Which city you stay in
- What is your age / profession
- What has been the claim
experience
- Modifications made /
Accessories added to the vehicle

• Similar to your health insurance,

many insurers nowadays offer

Claims
cashless facility if the vehicle is
repaired at their authorized garages
 Deductible Portability

• Deductible is the • Vehicle insurance is

minimum specified portable. In other
amount of any claim words, you can change
that you will bear, your insurer without
with the balance claim losing the benefit of
amount being payable any no-claim bonus
by the insurer. that you may be
• A standard policy eligible for.
normally has a
compulsory deductible
or excess of Rs.50 for
2-wheelers/Rs.500 for
4-wheelers
 TWO COMMERCIAL
CAR
WHEELER VEHICLE
INSURANCE INSURANCE
INSURANCE
 • THIRD PARTY LIABILITY
INSURANCE
BASED ON THE • COMPREHENSIVE
COVERAGE INSURANCE

• PRIVATE MOTOR
BASED ON INSURANCE
PURPOSE OF • COMMERCIAL MOTOR
USE INSURANCE
 This type of insurance policy covers third-
party liability, and the expenses incurred by
the policyholder in the event of damage or
theft of the insured vehicle.
 The policyholder also benefits from a
personal accident cover that offers
compensation if he is injured or faces death
in an accident.
 The comprehensive insurance policy can be
enhanced through add-on covers that offer
extended benefits.
 • This policy ensures that the policyholder
receives the full claim amount on the value
of replaced parts, following an accident.
Zero Depreciation • However, this cover is available only for
Cover vehicles that are less than three years old.

• This insurance covers expenses incurred

when there is a damage to the insured
Engine and vehicle’s engine or electronic circuits.
Electronic Circuit
Cover
 •The No Claim Bonus is a reward given to a
policyholder for not making any claims during
the policy term. The NCB can amount to a
significant reduction in premium for the
NCB Protection following year. However, when the
policyholder makes a claim in the subsequent
Cover years, he stands to lose the accrued NCB. The
NCB Protection cover, as the name suggests,
does not nullify the NCB in the event of a
claim; it just brings down the slab at which
the NCB discount is given on premium.

•In the case of a lost ignition key, this

insurance cover offers reimbursement
Key Replacement for a part of the cost of a substitute key
Cover
 Damage to third party vehicle
 Damage to third party’s property
 Damage to insured vehicle due to self-
ignorance, fire, explosion, riots, terrorist
acts etc
 Damage to insured vehicle due to natural
calamities like; earthquakes, storms, floods
etc
 Accident caused by external factors
 Theft/Burglary/House Braking
 Wear and tear due to age of a vehicle
 Insurance companies do not pay any type of
claim if the driver does not have a valid
driving license
 Periodic depreciations are applicable on
insured vehicle
 Electrical/Mechanical Breakdowns
 If the vehicle is used for unlawful activities
etc
 Private Car Insurance – In the Auto Insurance in India, Private
Car Insurance is the fastest growing sector as it is compulsory for
all the new cars. The amount of premium depends on the make
and value of the car, state where the car is registered and the
year of manufacture.
 Two Wheeler Insurance – The Two Wheeler Insurance under the
Auto Insurance in India covers accidental insurance for the
drivers of the vehicle. The amount of premium depends on the
current showroom price multiplied by the depreciation rate fixed
by the Tariff Advisory Committee at the time of the beginning of
policy period.
 Commercial Vehicle Insurance – Commercial Vehicle Insurance
under the Auto Insurance in India provides cover for all the
vehicles which are not used for personal purposes, like the Trucks
and HMVs. The amount of premium depends on the showroom
price of the vehicle at the commencement of the insurance
period, make of the vehicle and the place of registration of the
vehicle.
Step 1: Register your motor
insurance claim by calling our Toll
free Helpline no. 1800 3009 as
soon as the claim occurs.

Step 2: Take your vehicle to any of

our authorized network garages for
repair. Submit the require
documents to the surveyor.

Step 3: Company confirms liability

Step 4: If you opt for cashless facility, get
your vehicle repaired by our company-
authorized garages. We will settle the
repair bills directly with the garage up to
the amount payable

Step 5: In case you do not opt for cashless

facility, you have to pay for the repair
charges. You can then submit the bills and
claim form to the surveyor/company for
settlement

Step 6: Vehicle Delivery

 Policy number
 Your contact numbers
 Name of insured person
 Date & time of accident
 Vehicle number
 Make and model of the vehicle
 Location of loss
 Extent of loss
 Brief description of how the accident took place
 Garage name (with contact details)
 Contact details and name of the insured person
(if the person intimating the claim is not
insured)
 In order to safeguard the interests of pedestrians,
therefore, the Motor Vehicles Act, 1939, introduced
compulsory insurance. The insurance of motor vehicles
against damage is not made compulsory, but the insurance
of third party liability arising out of the use of motor
vehicles in public places is made compulsory.
 The liabilities which require compulsory insurance are
as follows:
 (a) any liability incurred by the insured in respect of death
or bodily injury of any person including owner of the goods
or his authorized representative carried in the carriage.
 (b) liability incurred in respect of damage to any property
of a third party;
 (c) liability incurred in respect of death or bodily injury of
any passenger of a public service vehicle;
 (d) liability arising under Workmen’s
Compensation Act, 1923 in respect of death
or bodily injury of:
 (i) paid driver of the vehicle;
 (ii)conductor, or ticket examiner (Public
service vehicles);
 (iii) workers, carried in a goods vehicle;

 (e) liability in respect of death or bodily

injury of passengers 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
damage to any property of third party : A limit
of Rs.6,000/-. The liability in respect of death of
or bodily injury to any passenger of a public
service vehicle in a public place, the amount of
liability incurred is unlimited.
 Section 140 of the Motor Vehicles Act 1988,
provides for 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
 Form “A” is called “Standard Form for “A”
Policy for Act Liability”. This form applies
uniformly to all classes of vehicles, whether
Private Cars, Commercial Vehicles, Motor Cycles
or Motor Scooters, with suitable amendments in
“Limitations as to Use”.
 Form A :To cover Act Liability
 Form “B”, which provides wider cover as
indicated above, varies with the class of vehicle
covered. There are therefore Form “B” Policies
for Private Cars, Commercial Vehicles, Motor
Cycles/ Scooters, etc.
 Form B: To cover own damage + Act Liability
 Risks covered are:
 a) Fire, explosion, self-ignition or lightning.
 b) Burglary, house breaking or theft.
 c) Riot and strike.
 d) Earthquake (fire and shock damage)
 e) Flood, typhoon, hurricane, storm, tempest,
inundation, cyclone, hailstorm, frost.
 f) Accidental external means.
 g) Malicious act.
 h) Terrorist activity.
 i) Transit by road, rail, inland waterway, lift,
elevator or air.
 j) Landslide /rockslide.
 The insurers indemnify the insured against
all sums which he may become legally liable
to any person including occupants carried in
the motor car (provided that they are not
carried for hire or reward) by reason of
death or bodily injuries caused to such third
parties or by reason of damage to the
property of third parties caused by or arising
out of the use of the motor car.
 The insured’s liability for damage to
property of third parties is limited to
Rs.6000/-; whilst liability for death of or
bodily injury to third party is unlimited
 – The insured is required to safeguard the
vehicle from loss or damage and maintain it in
efficient condition. In the event of an accident,
the insured shall take precautions to prevent
further damage. If the vehicle is driven before
repairs any further damage is at insured’s risk.
 – The insurer has the option to repair or replace
the vehicle or parts or pay in cash the amount of
damage or loss. The insurer’s liability cannot
exceed the insured’s estimated value of the
vehicle (specified in the policy) or the value of
the vehicle at the time of loss whichever is less.
 SHOP
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LOCATI VEHICLE
ON SIZE

AGE OF LIKELIHO
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CAR THEFT

TYPE
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