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IRDAFaqList

Faq
WhatMotorInsurancecovershouldIbuy?ShouldIbuyComprehensiveInsuranceorLiabilityPolicyonly?
ThirdPartyLiabilityinsuranceismandatoryforallvehiclesplyingonpublicroadsinIndia.ThiscoversLiabilityforinjuriesanddamagestoothersthatyouareresponsiblefor.Inaddition,
itisprudenttocoverlossordamagestothevehicleitselfbywayofComprehensive/Packagepolicy,whichcoversbothLiabilityaswellasOwndamagetotheinsuredvehicle.Liability
OnlycoverisalsoknownasActOnlycover.
CategoryName:MotorInsurance

Howisthepremiumdetermined?
Manyfactorsdeterminethepremiumyouwillpay.ForOwnDamagecoverdifferentinsurancecompanieschargedifferentpremiumsforsimilarcoverage.Shoparoundgettingthreeor
morecomparisonquotesisworthwhile.Checkvariousinsurersswebsitesitwillhelpyoucomparepremiums.Donotforgettocomparedeductibles,coverageandIDVsaspremium
maybelesserofoneinsurerbutwithhigherdeductibles,lowercoverageandlowerIDV,whichwilladverselyimpactyouintheeventofclaimsettlement.
Bepreparedtogiveyouragentinformationaboutthefollowingitemsthatarecommonlyusedtodetermineyourpremium:VehicleregistrationdetailswithEngineNo.,Chasisno.,Class
ofvehicle,cubiccapacity,seatingcapacity,etc.(Infact,allrelevantdetailsareintheRCbook/cardandacopyofsamemaybehandedover)TaxpaiddetailsCertificateoffitness,Driver
detailsage,gender,qualifications,licencevalidityPreviousinsurancehistory,ifany.
The Own Damage coverage is left to be rated by individual insurance companies after duly filing rates with the Insurance Regulatory and Development Authority. The same is
determinedonfollowingfactorsamongstothersAgeofvehicleDiscounts/loadingsAppropriateBonus/loading/discountsalongwithpastclaimsexperiencearetakenintoaccount
whilecalculatingpremium.IDV(InsuredDeclaredValue).
ThirdPartyLiabilityPremiumratesarelaiddownbyIRDA.
Incaseofbreakininsurance,vehicleinspectionwouldberequiredandextrachargeswillhavetobeincurredforthesame.
CategoryName:MotorInsurance

Whatcoveragelimitsmeetmyneeds?
ThesuminsuredforthevehicleiscalledInsuredsDeclaredValueandshouldreflectthecurrentmarketvalueofthevehicle.UnderLiabilityinsurance,ThirdPartyLiabilityinsuranceis
covered.ThereisunlimitedcoveragetoThirdpartiesinjuryandThirdpartypropertydamageiscovereduptoasumofRs7,50,000.

TheInsuredhastheoptiontorestrictcoverageforThirdPartyPropertydamagetoRs6,000andthiswillresultinalowerLiabilityOnlypremium.
CategoryName:MotorInsurance

Whatistheperiodofthepolicy?
Amotorpolicyisusuallyvalidforaperiodofoneyearandhastoberenewedbeforetheduedate.Paythepremiumontime.NoInsureroffersagraceperiodforpayingthepremium.In
caseoflapseofpolicybyevenoneday,thevehiclehastobeinspected.Moreover,ifacomprehensivepolicyisallowedtolapseformorethan90days,theaccruedbenefitofNCB(No
ClaimBonus)isalsolost.
CategoryName:MotorInsurance

Whatis"NoClaimBonus"?
NoClaimBonus(NCB)isthebenefitaccruedtoaninsuredfornotmakinganyclaimsduringthepreviouspolicyperiod.AspercurrentnormsinIndia,itrangesfrom20%ontheOwn
Damagepremium(andnotonLiabilitypremium)andprogressivelyincreasestoamaximumof50%.
If,however,aclaimislodged,theNoClaimBonusislostinthesubsequentpolicyperiod.
NCBisgiventotheinsuredandnottotheinsuredvehicle.Hence,ontransferofthevehicle,theinsurancepolicycanbetransferredtonewownerbutnottheNCB.Thenewownerhasto
paythedifferenceonaccountofNCBforthebalancepolicyperiod.Theoriginalownercan,however,usetheNCBonanewvehiclepurchasedbyhim.
CategoryName:MotorInsurance

WillmyNoClaimBonusgetmigratedifIwanttochangemyinsurancecompany?
Yes,youcanavailoftheNCBfacilityifyouchangetheinsureronrenewal.YouwouldhavetoproduceproofoftheNCBearnedbywayofrenewalnoticefromthecurrentinsurer.
Alternately,youcanproduceyouroriginal,expiringpolicyalongwithacertificationthatyouhavelodgednoclaimsontheexpiringpolicy.Forthistheproofcanbeintheformofa
renewalnoticeoraletterconfirmingtheNCBentitlementfromthepreviousinsurer.
CategoryName:MotorInsurance

Aretherediscountsthatwilllowermypremium?
InadditiontoNCB,thereareadditionaldiscountsavailableunderOwnDamagePremiumformembershipofAutomobileAssociationofIndia,VintageCars(Pvt.Carscertifiedbythe
VintageandClassicCarClubofIndia)InstallationofantitheftdevicesapprovedbyAutomobileResearchAssociationofIndia(ARAI),PuneandwhoseinstallationisapprovedbyAAI
Concessionsforspeciallydesigned/modifiedvehiclesfortheBlind,Handicappedandmentallychallengedpersons,whicharesuitablyendorsedintheRCbytheRTAconcerned
optingforvoluntaryadditionaldeductible/excess.
UnderLiabilityOnlySection,discountsareavailableforreductioninThirdPartyPropertyDamage(TPPD)fromRs.750,000toRs.6,000.

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CategoryName:MotorInsurance

IsServiceTaxapplicableandhowmuchisit?
Yes,ServiceTaxisapplicableandwouldbeasperprevailingruleoflaw.
CategoryName:MotorInsurance

Whatisdeductible?
Deductibleorexcessistheamountoverandabove,whichtheclaimwillbepayable.Thereisanormalstandard/compulsoryexcessformostvehiclesrangingfromRs50fortwo
wheelerstoRs500forPrivateCarsandCommercialVehicleswhichincreasesdependinguponthecubiccapacity/carryingcapacityofthevehicle.However,insomecasestheinsurer
mayimposeadditionalexcessdependingupontheageofthevehicleorifthereishighfrequencyofclaims.
CategoryName:MotorInsurance

Whatistheprocedureforrecordinganychangesinthepolicy?
Ifthereareanychangesinthepolicylikechangeofaddressormodificationstothevehicleoritsuse,itwillbedonebyanEndorsementbytheinsurancecompany.Submitalettertothe
insurerwithproofforthechangesandobtaintheendorsement.Someendorsementsmayrequireyoutopayadditionalpremium.Checkthecorrectnessoftheendorsement.
CategoryName:MotorInsurance

IfIamusingthecarinaparticularcity,whatpremiumrateisapplied?
Forthepurposeofapplyingpremiumrate,theplacewherethevehicleisregisteredisreckoned(nottheplacewherethevehicleisused).IfyourvehicleisregisteredinChennai,therate
applicableforZoneAischarged.Evenwhenyoushifttoadifferentcity/town,thesameratewillcontinuetobeapplied.Similarlyifavehicleisregisteredinatown,itattractsZoneB
premiumrate.Subsequentlyiftheownershiftstoametro,hewillcontinuetobechargedtheZoneBrate.
CategoryName:MotorInsurance

WhatisaCertificateofInsuranceunderMotorVehicleAct?
AsperRule141ofCentralMotorVehicleRules1989,acertificateofInsuranceistobeissuedonlyinForm51.ItisonlyinMotorVehicleInsurance,apartfromthepolicy,thataseparate
certificateofinsuranceisrequiredtobeissuedbyinsurers.Thisdocumentshouldalwaysbecarriedinthevehicle.Thepolicyshouldbepreservedseparatelyathome/office.
CategoryName:MotorInsurance

IfIfitCNGorLPGkitinmyvehicle,isitnecessarytoinformtheInsuranceCompany?
IfaCNG/LPGkitisfittedinthevehicle,the(RoadTransportAuthority(RTA)officewherethevehiclewasregisteredshouldbeinformedsothattheymakeanoteofthechangeinthe
registrationcertificate(RC)ofthevehicle.TheinsurancecompanyshouldalsobeinformedsothatthekitiscoveredonpaymentofextrapremiumonthevalueofthekitunderOD
sectionandalsounderLOsection.
CategoryName:MotorInsurance

Whatarethedocumentstobekeptinthevehiclewhileplyinginpublicplaces?
CertificateofInsurance
XeroxcopyofRegistrationCertificate
PollutionUnderControlCertificate
PhotocopyofDrivingLicenceofpersonwhoisdrivingthevehicle
CategoryName:MotorInsurance

CanItransfermyinsurancetothepurchaserofmyvehicle?
Yes,theinsurancecanbetransferredtothebuyerofthevehicle,providedthesellerinformsinwritingofsuchtransfertotheinsurancecompany.Afreshproposalformneedstobefilled
in.ThereisanominalfeechargedfortransferofinsurancealongwithproratarecoveryofNCBfromthedateoftransfertillpolicyexpiry.Itmaybenotedthattransferofownershipin
comprehensive/packagepolicieshastoberecordedwithin14daysfromdateoftransferfailingwhichnoclaimwillbepayableforowndamagetothevehicle.
CategoryName:MotorInsurance

CanIcontinuetheinsuranceinthenameofthepreviousownerevenafterthevehicleistransferredinRTOrecordsinmyname?
No.Registrationandinsuranceofthevehicleshouldalwaysbeinthesamenamewiththesameaddress.Otherwisetheclaimisnotpayable.Afreshproposalformneedstobefilledin.
Thereisanominalfeechargedfortransferofinsurance.
CategoryName:MotorInsurance

Ihavelosttheinsurancepolicy.CanIgetaduplicateone?
Yes,pleaseapproachthesameoffice,whichhadissuedthepolicy,withawrittenrequest.Anominalfeeischargedforissuingaduplicatepolicycopy.
CategoryName:MotorInsurance

WhatarethedocumentsthatarerequiredtobesubmittedforaMotorInsuranceclaim?
Generally,thefollowingdocumentsarerequiredtobesubmitted.However,readthroughyourpolicytoseethecompletelistdulyfilledinclaimform,RCcopyofthevehicle,Original
estimateofloss,Originalrepairinvoiceandpaymentreceipt.Incasecashlessfacilityisavailed,onlyrepairinvoicewouldneedtobesubmittedandFIR,ifrequired.Fortheftclaims,the
keysaretobesubmitted.Theftclaimswouldalsorequirenontraceablecertificatetobesubmitted.

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