Private Car Insurance

As we are aware today Private cars range from a lakh to a few crores, and insuring them has become very important as in case of any unfortunate incidents, the financial loss at stake is very high. As we are part of the Motor Vehicle Evolution we have also witnessed huge innovation in the field of Car Insurance as well. Today the coverages have been designed with the intent of being able to cover all types of Risks.

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Private Car

In today’s Automobile Market, New cars are being launched everyday and new automobile players are entering the market on a regular bases. Today’s customer longs for comfortable travel and which is why the demand for cars is high and ever increasing. Private Car Insurance protects your car from unforeseen risks and ensures a stress free drive.

Section 1 – Loss of or Damage to the vehicle insured

The Company will indemnify the Insured against loss or damage to the vehicle insured hereunder and/or its accessories whilst thereon: 
  1. By Fire, explosion self-ignition or lightning; 
  2. By Burglary, housebreaking or theft; 
  3. By Riot and strike; 
  4. By Earthquake (Fire and Shock Damage); 
  5. By Flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost; 
  6. By Accidental external means; 
  7. By Malicious act; 
  8. By Terrorist activity; 
  9. Whilst in transit By road Rail Inland - Waterway lift elevator or air; 
  10.  By Landslide, Rock slide.
Mostly we think only in case of an accident alone our vehicles are covered, which is  not true. There are several other risks which are also covered under the Car Insurance. 

Subject to deduction for depreciation at the rates mentioned below in respect of parts replaced

1. For all rubber/nylon/plastic parts, tyres and tubes, batteries and air bags -50% 
2. For fiber glass components -30% 
3. For all parts made of glass -Nil  
4. Rate of depreciation for all other parts including wooden parts will be as per the following schedule  

1. The Company shall not be liable to make any payment in respect of:
(a) Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failures or breakages; 
(b) Damage to tyres and tubes unless the vehicle is damaged at the same time in which case the liability of the company shall be limited to 50% of the cost of replacement. And  
(c) Any accidental loss or damage suffered whilst the Insured or any person driving the vehicle with the knowledge and consent of the Insured is under the influence of intoxicating liquor or drugs.  

2. In the event of the vehicle being disabled By reason of loss or damage covered under this Policy the Company will bear the reasonable cost of protection and removal to the nearest repairer and re-delivery to the insured but not exceeding in all Rs. 1500/- in respect of any one accident.
3. The insured may authorize the repair of the vehicle necessitated By damage for which the Company may be liable under this Policy provided that:  

(a) The estimated cost of such repair including replacements, if any, does not exceed Rs. 500/-;  
(b) The company is furnished forthwith with a detailed estimate of the cost of repairs; and  
(c) The Insured shall give the Company every assistance to see that such repair is necessary and the charges are reasonable.

Insured Declared Value (IDV)

The Insured’s Declared Value (IDV) of the vehicle will be deemed to be the ‘SUM INSURED’ for the purpose of this Policy which is fixed at the commencement of each policy period for the insured vehicle.  

The IDV of the vehicle (and accessories if any fitted to the vehicle) is to be fixed on the basis of the manufacturer’s listed selling price of the brand and model as the vehicle insured at the commencement of insurance/renewal and adjusted for depreciation (as per scheduled below):  

The schedule of age-wise depreciation as shown below is applicable for the purpose of Total Loss/Constructive Total Loss (TL/CTL) claims only. 

The insured vehicle shall be treated as a CTL if the aggregate cost of retrieval and/or repair of the vehicle, subject to terms and conditions of the policy, exceeds 75% of the IDV of the vehicle. 

IDV of vehicles beyond 5 years of age and of obsolete models of vehicles (i.e. models which the manufacturers have discontinued to manufacture) is to be determined on the basis of an understanding between the insurer and the insured.  
IDV shall be treated as the ‘Market Value’ throughout the policy period without any further depreciation for the purpose of Total Loss (TL) / Constructive Total Loss (CTL) claims.  

No Claim Bonus

Any one claim will bring the NCB back to 0% and the same will increase in the same order as mentioned above and will become 50% in 5 non claim years.

While selling the Old Car remember to get an NCB in abeyance letter from the Insurance Company, the NCB percentage will translate to NCB discount while buying the New Car. 

Section 2 - Liability to Third Party

1. Subject to the limits of liability as laid down in the Schedule here to the Company will indemnify the Insured in the event of an accident caused by or arising out of the use of the vehicle against all sums which the insured shall become legally liable to pay in respect of:  
(i) Death of or bodily injury to any person including occupants carried in the vehicle (provided such occupants are not carried for hire or reward) but except so far as it is necessary to meet the requirements of Motor Vehicles Act, the Company shall not be liable where such death or injury arises out of and in the course of the employment of such person By the insured.  
(ii) Damage to property other than property belonging to the insured or held in trust or in the custody or control of the Insured. 
2. The Company will pay all costs and expenses incurred with its written consent. 

3. In terms of and subject to the limitations of the indemnity granted By this section to the insured, the Company will indemnify and driver who is driving the vehicle on the insured’s order or with insured’s permission provided that such driver shall as though he/she was the insured observe fulfill and be subject to the Terms Exceptions and Conditions of this Policy in so far as they apply.  

4. In the event of the death of any person entitled to indemnity under this Policy the Company will in respect of the liability incurred By such person indemnify his/her personal representative in terms of and subject to the limitations of this Policy provided that such personal representative shall as though such representative was the insured observe fulfill and be subject to the Terms Exceptions and Conditions of this Policy in so far as they apply.  

5. The Company may at its own option  
(A) arrange for representation at any Inquest or Fatal Inquiry in respect of any death which may be the subject of indemnity under this Policy  and  
(B) undertake the defense of proceedings in any Court of Law in respect of any act or alleged offence causing or relating to any event which may be the subject of indemnity under this Policy.