Own Damage (OD) Cover

Own Damage cover, as the name suggests, pays for damages of the insured’s own vehicle. This cover provides financial protection against damages or losses to your car from various causes, including:

• Fire, explosion, self-ignition, or lightning
• Burglary, housebreaking, or theft
• Riot and strike
• Earthquake (fire and shock damage)
• Natural disasters like flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, and frost
• Accidental external means
• Malicious acts
• Terrorist activities
• While in transit by road, rail, inland waterway, lift, elevator, or air
• Landslide or rockslide

Third Party Liability Cover

This part of the motor insurance coverage is compulsory by law. This cover protects you against legal liabilities arising from accidents involving your vehicle that result in injury or damage to third-party persons or property. It provides compensation for:

• Death or bodily injury to a third party
• Damage to third-party property

The Own Damage cover together with Third Party Liability cover are jointly often referred to as ‘Comprehensive’ motor insurance.

Personal Accident Cover (PAC)

Personal Accident Cover compensates the insured’s for bodily injury/death sustained by the owner-driver of the vehicle, in direct connection with the vehicle insured or whilst driving or mounting into/dismounting from the vehicle insured or whilst travelling in it as a co-driver, caused by violent, accidental, external and visible means which are independent of any other cause.

PAC provides financial support in case the insured person either meets a fatal accident or is rendered disabled due to a road mishap. The premium for this type of cover is set by the IRDAI and all drivers on Indian roads must have a minimum cover of ₹15 lakh.

This cover is compulsory unless the insured is separately insured for Personal Accident.

What is a Deductible?

In motor insurance, a deductible is the amount the policyholder must pay out-of-pocket before the insurance company pays for a claim. Deductibles are designed to share the risk between the insurer and the insured, reducing the number of small claims and keeping insurance premiums affordable.

Types of Deductibles in Motor Insurance

Two types of deductibles are available in a motor insurance policy. They are as follows…

Compulsory Deductible

This is a mandatory amount set by the IRDAI; it is a fixed value measured based on the cubic capacity of the car engine.

For example, the compulsory deductible for private cars can be ₹1,000 for vehicles with engine capacity up to 1500cc and ₹2,000 for vehicles with engine capacity above 1500cc.The compulsory deductible for two-wheelers is fixed at ₹100 for every claim raised.

Voluntary Deductible

This is an optional amount that the policyholder can choose to pay over and above the compulsory deductible. By opting for a higher voluntary deductible, the policyholder can reduce their premium.

When considering a motor insurance policy, it's important to be aware of what is not covered.

Here is a summary of the general exclusions applicable to all sections of our policy:

1. Geographical Limitations: Any accidental loss or damage, or liability sustained outside the specified geographical area is not covered.
2. Contractual Liability: Claims arising from any contractual liability are excluded.
3. Usage and Driver Limitations:
   • Used in a manner not permitted by the policy.
   • Driven by someone not authorized under the policy's driver's clause.
4. Radiation and Nuclear Risks:
   • Loss, damage, or liability caused by ionizing radiation or contamination from nuclear fuel or waste.
   • Damage arising from nuclear weapons material.
5. War and Related Risks: Any loss, damage, or liability resulting from war, invasion, hostilities, civil war, rebellion, or military operations is excluded.
6. Consequential Loss: Loss or damage to property or any consequential loss resulting from the above exclusions is not covered.

Additionally, there is a Deductible clause, where the policyholder is responsible for a specified amount of each claim under the section covering loss or damage to the insured vehicle.

Understanding these exclusions helps ensure that you know the boundaries of your coverage and can make informed decisions about any additional protection you might need.

A claim is a request by the policyholder to the insurance company seeking compensation for an insured event involving the insured vehicle under the motor insurance policy.

In case of a claim, you may directly contact InsurancePe at the phone number or e-mail listed on our website, and we will guide you through every step of the claims process.

Upon receiving the claim request and necessary documents, the insurance company reviews coverages, its validity and, if approved, provides reimbursement or covers the costs of repairs or replacement of the vehicle as per the policy's terms and conditions.

There are two types of claims in motor insurance:

1. Third Party Claims
2. Own Damage Claims

Third Party Claims

According to The Motor Insurance Act of 1989, third-party insurance is compulsory for vehicles driven in public places. Hence, it is also referred to as Act Only Insurance or Liability Only Insurance.

The person seeking compensation will have to file a compensation claim case in the Motor Accident Claims Tribunal. Such cases do not fall under the jurisdiction of civil courts.

Lawsuits filed by third parties against an insured person may seek compensation for:

Injury and Death of a Third Party:
If the accident causes injury, disability, or death of the third party, the individual or their dependents can file a claim for compensation. The Motor Accidents Claim Tribunal will decide the compensation based on the documentation.

Property Damage Caused to a Third Party:
In the case of third-party property damage, a claim can be filed through the Motor Accident Claims Tribunal within the jurisdiction of the accident.

The third party should:
- Obtain the insurance details of the vehicle
- File an FIR by providing complete details and evidence at the police station in the same jurisdiction

According to the tribunal's ruling, compensation will be awarded to the third party based on the documentation. The maximum compensation for property damage is ₹7,50,000.

1. What is No Claim Bonus or No Claim Discount?

No Claim Bonus (NCB) is a reward given by an insurance company to an insured for not raising any claims during a policy year. This discount ranges between 20%-50% and is given to the insured at the time of policy renewal. NCB is transferable and can be transferred even if the insured buys a new vehicle.

2. What to do if a vehicle meets with an accident outside the area/city/state from where policy is issued?

Any motor insurance policy covers your vehicle throughout India irrespective of where the policy is purchased. Beyond city limits, there may not be a pick up and drop facility. The insurer will suggest a network garage/workshop close to the place of accident, following which an external surveyor will be appointed for the assessment of loss.

3. How does insurancepe assist you with a claim?

Reach out to us on our landline number, or send us an email at customercare@insurancepe.com and inform us about the claim you want to report, your policy number, contact details, address etc. Our insurance professionals will guide you through every step of the claims process.

4. How much coverage does a motor insurance policy offer?

For third-party injuries or death to a person, there is no upper limit and the claim is settled in court. However, property damage is covered for a maximum of ₹7,50,000. In case of a comprehensive cover, the coverage amount for own damage is the Insured’s Declared Value (IDV). This is the maximum amount paid in case of complete damage (Total Loss or Constructive Total Loss) to the car or if it is stolen. This depends on the existing/current market value of the model of the vehicle.

5. What is a compulsory deductible in a car insurance policy?

The minimum amount you have to pay out of your pocket of the total claim amount is called the compulsory deductible. This amount depends on the cubic capacity (cc) of the engine of your vehicle. If your car bears a 1000 cc or more, the compulsory deductible would be ₹1,000 and if it is above 1500 cc, the compulsory deductible would be ₹2,000.

6. Is it possible to switch to a different type of car insurance policy?

You can change your car insurance policy, however insurancepe does not recommend you change your car insurance coverage during the policy period. However, switching after 2 or 3 years might result in cost savings depending on the insurance company.

7. What is Deductible?

In an insurance policy, the deductible or excess is the portion of any claim that is not covered by the insurance provider. It is normally quoted as a fixed amount and is a part of most policies covering losses to the policyholder. The deductible must be "met", that is, paid by the insured, before the benefits of the policy can apply.

8. Is an expired policy treated as a fresh case?

Yes, if a motor insurance policy has expired, it is treated as a fresh case. The vehicle may be subject to inspection, and the insurer will evaluate the condition before issuing a new policy. You may also lose your accumulated No Claim Bonus (NCB) if renewal is not done within 90 days of expiry.

9.Under what circumstances inspection of the vehicle is required?

• If there is a gap in policy renewal
• Switching from third party cover to a comprehensive cover
• There is a requirement to cover additional equipment or accessories fitted to the car like anti-theft devices, CNG kits etc. which are not covered in the expiring policy
• Opting for certain add-on covers

10.What is multi-year car Insurance?

A: According to a Supreme Court order, IRDAI mandated all general insurance companies to offer multi-year third party insurance to all motor vehicles sold after 1st September, 2018. Therefore, instead of single third-party liability plans, insurance companies will offer 3-year third party liability plans to cars and 5-year third party liability plans to two wheelers

11.What is de-tariffing?

A: Previously the Premium rates and policy terms and conditions were fixed by Tariff Advisory Committee. Tariff rates stands in the way of brokers quoting lower rates, wider choice of product and choice of insurers to their clients. But, as of January 2007, all such pricing controls have been removed and your premiums now depend on the risk that needs to be covered. As a result, brokers such as insurancepe become important as they evaluate your risk and needs, seek quotations from various insurance companies and negotiate on your behalf to get you the best deal and take complete responsibility over the claims process.

12.Why should I buy my insurance from an insurancepe instead of buying directly from an insurance company?

A: Previously the Premium rates and policy terms and conditions were fixed by Tariff Advisory Committee. Tariff rates stands in the way of brokers quoting lower rates, wider choice of product and choice of insurers to their clients. But, as of January 2007, all such pricing controls have been removed and your premiums now depend on the risk that needs to be covered. As a result, brokers such as insurancepe become important as they evaluate your risk and needs, seek quotations from various insurance companies and negotiate on your behalf to get you the best deal and take complete responsibility over the claims process.

13.Can an insured claim any amount from his insurer regardless of the extent of loss?

A: No,the loss will be surveyed and amount payable assessed and this is subject to calculations like depreciation and policy excess so that the compensation is strictly for the loss suffered. Insurance functions on a core principle of ‘insurable interest’which dictates that an insurance policy should not be the means to making a profit but only to ensure that you do not suffer a financial loss.

14.Will my No Claim Bonus get migrated if I want to change my insurance company?

A: Yes, you can avail the NCB facility if you change the insurer on renewal. You will need to produce proof of the NCB earned by way of renewal notice from your current insurer, or you can produce your original, expiring policy document along with a certification that you haveno paid or outstanding claims underyour expiring policy. For this the proof is usuall a letter confirming the NCB entitlement from the previous insurer

15.Are there discounts that will lower my premium?

A: In addition to NCB, there are additional discounts arising out of opting for a voluntary deductible. Other discounts which you may be eligible for are: Installation of approved anti-theft devices; Concessions for specially designed/modified vehicles for the Blind, Handicapped and mentally challenged persons, which are suitably endorsed in the RC by the concerned RTA.Etc. There may be other discounts available depending on the insurance company.

16.If I fit CNG or LPG kit in my vehicle, is it necessary to inform the Insurance Company?

A: If a CNG/ LPG kit is fitted in the vehicle, the Road Transport Authority (RTA) office where the vehicle was registered should be informed so that they make a note of the change in the registration certificate (RC) of the vehicle. The insurance company should also be informed and will require payment of extra premium on the value of the kit to include it under coverage of your motor insurance policy.

17.Can I continue the insurance in the name of the previous owner even after the vehicle is transferred in RTO records in my name?

A: No. Registration and insurance of the vehicle should always be in the same name with the same address. Otherwise the claim is not payable. If you bought a used car from its previous owner, you will have to fill ina fresh proposal form and approach the insurance company. There is a nominal fee charged for transfer of insurance.

18.What to do in case of an accident?

A: Whenever you meet with such an unfortunate event, notify policy and take spot pictures immediately. Click pictures of your vehicle from all the required angels, especially the damages. Be ready with essential information such as colliding party driver's phone number, vehicle number and documents like policy number, driving licence, etc. Get in touch with insurancepe’s customer support to file a claim on time so that our professionals can guide you through every step of the claims process.

19.What are the documents to be kept in the vehicle while plying in public places?

A: Certificate of Insurance, Copy of Registration Certificate, Pollution Control Certificate, Driving Licence of person driving the vehicle

20.If I am using the car in a particular city, what premium rate is applied?

A: You could be fined upto Rs. 2,000 to 4,000 based on number of violations and can also be sentenced imprisonment of up to 3 months for driving an uninsured vehicle.

21.How much fine do i have to pay for not holding motor insurance while driving (driving an uninsured vehicle)?

A: You could be fined upto Rs. 2,000 to 4,000 based on number of violations and can also be sentenced imprisonment of up to 3 months for driving an uninsured vehicle.

22.Can one car owner buy two policies for the same car?

A: No, Car owners cannot have two insurance policies for the same four-wheeler. However, they can get additional add-on covers such as own damage protection add-on cover, personal accident cover, etc., all together with their existing car insurance policy.