There are mainly two types of motor insurance-
- Comprehensive insurance
- Third Party Insurance.
Generally there are three types of discounts given . These are
i. Voluntary Excess discounts?
Voluntary excess discount is given if you accept to bear a certain amount of loss from each claim. Which means if your claim amount is Rs 40,000. You choose to bear the first Rs 10,000 of your claim. This becomes your voluntary deductible. The claim will now be worth only Rs 30,000.
ii. No Claim Bonus ?
The insurance company grants a discount in the premium during policy renewal called a No Claims Bonus if you do not make any claim .The discounts on premium is as under
- first year 20 per cent;
- For two consecutive years, the bonus is 25 per cent;
- For three consecutive years, it’s 35 per cent;
- for four consecutive years, 45 per cent, and
- for five consecutive years, the bonus is 50 per cent.
iii. special discounts available for handicapped people?
If vehicle is modified for use by handicapped people , 50 % discount is given on Own Damage premium . The discount is also available for institutions exclusively engaged in the service of the handicapped.
Yes, in following conditions
your vehicle has been insured elsewhere, or
the registration certificate for your vehicle has been legally cancelled by the Regional Transport Office (RTO).
Only the balance of the premium amount will be refunded to you.
The refund is possible only if there has been no claim during the policy period. The insurance company will also retain a minimum premium for the time the policy was in force.
Yes, you can renew your policy online, provided it is renewed between the period starting two months before expiry and six days after expiry of the previous policy.
Yes,the Indian Motor Tariff Act categorizes cities into specific zones and premium depends on the city of registration, irrespective of the place where it is used or where the insurance is renewed. .
Zone A: Ahmedabad , Bangalore, Chennai, Hyderabad, Kolkata , Mumbai New Delhi and Pune
Zone B: Rest of India
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