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About Vehicle Insurance
Vehicle insurance or motor insurance refers to an insurance policy that provides coverage for four-wheelers, commercial vehicles like trucks, buses, etc., and two-wheelers. Vehicle insurance offers coverage against third-party liabilities and accidental damages suffered by the insured vehicle due to accidents, fire, natural calamities and thefts.
Types of Motor/Vehicle Insurance in India
There are mainly three types of motor insurance in India. The following sections explain the same.
Car Insurance
Car insurance is an insurance policy that offers coverage against accidental damages or theft of the car or damages caused to the third party property or life due to the insured car. Buying a third-party liability policy is mandatory as per law. However, for financial backup against damages to your car, you must opt for own-damage cover or a Comprehensive Car Insurance Policy.
Bike/Two-Wheeler Insurance
Two-wheeler insurance is an insurance policy that provides coverage for all types of two-wheelers like scooters, mopeds, bikes, sports bikes, etc. The insurance provides coverage against financial and legal liabilities such as accidental damages to the insured vehicle and damages to the third party property or injury/death of a third party caused due to the insured bike. Similar to car insurance, buying third-party cover is mandatory, and the own damage cover is optional.
Commercial Vehicle Insurance
Commercial vehicle insurance is an insurance policy that covers commercial vehicles like trucks, buses, etc. The coverage is similar to car/bike insurance. It covers accidental damages to the insured vehicle and third-party liabilities. All commercial vehicles must have at least a third-party liability policy to comply with the law.
Features of Motor Vehicle Insurance
Motor vehicle insurance comes with several key features. The following table explains the benefits and top features of purchasing vehicle insurance online.
| FEATURES | BENEFITS |
|---|---|
| 24×7 Access | Purchase and go for vehicle insurance renewal anytime and anywhere |
| Convenient Process | Forget form-filling and tedious documentation work. |
| Low Premium | Online insurers like ACKO don't hire any middlemen. Hence, we can offer policies at low premiums as they have a low operational cost. |
| Smooth Processing | Online infrastructure helps digital-first insurers to issue policies, settle claims, and service policyholders in a hassle-free way. |
| Informed Decision-Making | All the necessary information is available on ACKO's website/mobile app. Also, since there are no intermediaries, policyholders can make informed decisions based on their needs. |
| Quick Renewal | Vehicle insurance renewal can be instantly done with the help of ACKO’s website or smartphone app. |
| Satisfying Insurance Experience | Right from researching plans, buying them, renewing them or making claims, online insurance is more convenient, time-saving and effective. |
Why Should You Buy Vehicle Insurance Online?
Here are the top reasons to buy motor vehicle insurance online.
Third-Party Liability Coverage
Buying motor vehicle insurance provides you with third-party liability coverage. It is the coverage that covers you against damages to third-party property or injury or death of a third party caused due to your vehicle. The coverage saves you from legal hassles and financial losses.
Provides Financial Backup
If you opt for an own-damage or Comprehensive Vehicle Insurance, you will get financial backup if your vehicle suffers damages due to accidents, natural disasters, vehicle theft and total loss. Hence, vehicle insurance can be your saviour if your vehicle is stolen or damaged significantly due to the reasons mentioned above.
Provides Personal Accident Cover
Buying a Personal Accident (PA) cover is mandatory when purchasing vehicle insurance. It provides coverage to the vehicle owner against accidental injuries/death. The PA cover provides coverage of up to Rs. 15 lakhs, and it can be your financial backup in case of accidental injury/disability.
Motor Insurance Coverage
Vehicle insurance comes with several coverage benefits, depending on the policy you choose. The following are the coverage details of a Comprehensive Motor Insurance Policy. You can refer to the concerned policy’s Policy Wordings for a detailed list of inclusions and exclusions.
What’s Covered?
What’s Not Covered?
What’s Covered in a Motor Insurance Coverage by ACKO
✅ Third-party Cover: Coverage for injuries to a third party or damages to their property.
✅ Own Damage: Damage to the insured vehicle due to an accident, fire, natural calamities or man-made calamities.
✅Theft Cover: Insurance cover for the vehicle in case it gets stolen.
What’s Not Covered in a Motor Insurance Coverage by ACKO
❌ Own damage is excluded in case of a Third-Party Policy.
❌ Damages to your vehicle when riding/driving in an intoxicated state.
❌ Damages to your vehicle when riding/driving with an expired vehicle insurance policy.
❌ Damages to your vehicle when riding/driving with an invalid Driving Licence.
❌ Cost of repair/replacement of parts that are damaged due to regular wear and tear.
❌ Any claims related to personal items stolen from your vehicle.
How to Use a Vehicle Insurance Calculator?
A vehicle insurance calculator or a premium calculator helps you determine the premium amount you would be required to pay for the chosen insurance coverage. It is simple to use and is available free of cost. All you have to do is share basic information about your vehicle, choose the required coverage, and you will come to know the approximate cost for the coverage. Here are the steps to follow to know the payable premium.
Step 1: Visit www.acko.com or download the mobile app to buy a vehicle insurance policy online.
Step 2: Enter your vehicle (car/bike) details, choose the coverage, and select the suitable add-ons.
Step 3: Once you enter the details, you can view the premium amount for the most suitable coverage for your vehicle.
You can modify certain inputs like IDV and get to know the different premium amounts for different covers. Once you are convinced about a particular cover, you can go ahead and purchase the policy. The policy will be available to download as soon as your payment is processed.
Add-on Covers Under Vehicle Insurance
Add-ons are additional insurance covers that can be purchased by paying a premium. Note that you can buy these additional covers only with a Comprehensive policy and not with a Third-party policy. Here’s a list of popular motor insurance policy add-ons on ACKO.
Zero Depreciation
With this add-on, ACKO will not consider the depreciation charges while settling the claim. As a result, your after-claim payout will be more than what it would have been if you didn’t have this cover.
Roadside Assistance
Stranded on the road? Simply call us, and our professional vehicle mechanic will rush to your location to help you out with the vehicle’s issues, including towing services during car breakdowns.
Consumables Cover
Usually, you have to pay the cost of consumables while repairing the vehicle. ACKO does not cover costs such as usage of oil, nuts and bolts, etc. With this add-on, such costs shall be covered.
Engine Protection
With the Engine Protection Add-on, you can insure your car’s engine against most of the damages, such as floods, that are not covered in a Comprehensive Plan.
Key Replacement Cover
Car keys aren’t cheap, and the cost can go upwards of Rs. 10,000. With Key Replacement Cover, you can save your money on expenses incurred for replacing a lost, stolen, or damaged key and even a replaced lock, if required.
Outstation Emergency Cover
Outstation Emergency Cover secures you against accidents/breakdowns outside a 100 kilometres radius of your residence during the policy period.
No Claim Bonus (NCB) Cover
When you don't raise a claim during the previous policy period, ACKO rewards you with an NCB discount on the premium amount during your vehicle insurance renewal. This discount can go up to 50% if you don't raise a claim for five consecutive years.
Return to Invoice Cover
In case your car is stolen or damaged beyond repair, the Return to Invoice add-on cover will help you recover the amount mentioned on the car's invoice value, including the car registration cost and road tax as well.
Personal Accident Cover
Along with a Third-party vehicle insurance plan, it is compulsory to own a Personal Accident Cover in India. This additional cover provides financial protection in the event of permanent disability/death while driving or riding your vehicle.
Personal Belongings - Damage/Theft
While riding, helmets are critical to circumvent injuries to your brain. With this add-on cover, ACKO will cover the repair/replacement cost in case your helmet is stolen or damaged in an accident, fire, man-made or natural calamities.
Personal Accident Cover for Passengers
When you buy this add-on cover along with your Comprehensive car insurance policy, you can secure your near and dear ones in case of permanent disability/death while driving a car. With this add-on cover, you get access to coverage of up to Rs. 1 lakh per passenger.
How to Apply for Vehicle Insurance Online
Here are the steps to apply for motor insurance online.
Step 1: Visit the ACKO website or download the mobile app.
Step 2: Provide the details of your personal and vehicle details.
Step 3: Select the vehicle insurance plan and add-ons.
Step 4: Pay the insurance premium to buy vehicle insurance online.
How to Renew Vehicle Insurance Online
The vehicle insurance renewal process is similar to buying a new vehicle insurance policy. Here’s the process to renew vehicle insurance online on ACKO.
Step 1
If you have purchased your previous policy on ACKO, you can modify your policy by logging into your account. If you have purchased from a different insurer and looking for vehicle insurance renewal on ACKO, visit our website or download the mobile app.
Step 2
During the vehicle insurance renewal on ACKO, you will have to share and verify details related to your vehicle, previous vehicle insurance details, etc. Select the right plan and add-ons that suits your requirement.
Step 3
Once you have selected the right insurance policy for your car/bike, make an online payment. Once you pay the premium amount, you will receive the policy document in your inbox.
Steps to Buy/Renew Vehicle Insurance Online
Here are the steps to buy or renew vehicle insurance online on ACKO
Step 1: Scroll to the top of this page or download the ACKO app.
Step 2: Enter your car registration number and click on the “Insure Now” button.
Step 3: Choose the motor insurance plan and add-ons.
Step 4: Customise the IDV as per your preference.
Step 5: Pay the premium online to instantly buy or renew vehicle insurance online.
Note: Existing ACKO customers can simply log in to your account and renew the policy by clicking on your policy card.
How to File a Motor Insurance Claim
Filing a claim on ACKO is easy and hassle-free. All you have to do is log in to your account via the website or mobile app to raise a claim. Here is how the claims are settled on ACKO.
Step 1: Log in to your account and click on the Claim Now section.
Step 2: Provide details about the claim and upload the relevant images of vehicle damage.
Step 3: Depending on the type of damage, ACKO will settle the claim within a few hours/days.
For minor claims, ACKO will instantly reimburse the repair cost. In case of major claims, ACKO will inspect your vehicle. The repair bill will be settled with the garage of your choice where you wish to get your vehicle repaired (except deductibles) if it is a Network Garage. If not, you will have to pay the bill first and then submit the bills to ACKO to get them reimbursed.
In case of theft or third-party losses, the process becomes a bit complex and can involve filing a First Information Report (FIR) with the police. When your vehicle is stolen, you will need a Non-Traceable Certificate from the police to raise a claim. In case of third-party losses, the issue is directed to Motor Accident Claims Tribunal, which decides the compensation amount.
Factors that Determine Your Vehicle/Motor Insurance Premium
Here’s a list of factors that play a vital role in determining the vehicle insurance premium of your bike or the car’s Comprehensive Insurance Policy.
Vehicle Details
Details related to the vehicle, such as age, engine specifications, etc.
Location Details
Details about the PIN code of your locality.
Claim History
Details related to previous claims associated with the vehicle.
Policy Coverage
The extent of the policy cover, including the add-ons, if any.
Insured Declared Value
The higher the Insured Declared Value (IDV), the higher the premium amount.
Deductibles Amount
The higher the amount of the deductibles, the lower the premium amount.
Anti-theft Devices
Installation of anti-theft devices will also have an impact on the premium amount.
No Claim Bonus Discount
No Claim Bonus percentage during vehicle insurance renewal impacts the final payable premium.
Insurance Company
New-age digital insurers like ACKO eliminate the need for middlemen, which reduces operating costs. This, in turn, results in a lower premium amount.
How to Reduce Vehicle Insurance Premium
Here are a few ways that can help you reduce your motor insurance policy premium.
Select only those add-ons that have the potential to add value to your vehicle’s insurance coverage.
Purchase a policy from a digital-first insurance company like ACKO to enjoy a lower premium amount.
Raise claims judiciously and avoid minor claims to benefit from the No Claim Bonus discount while renewing the policy.
Install anti-theft devices and earn a discount on the premium amount.
Renew your policy before it expires, as not doing so can spike the premium.
Compare motor insurance online and make an informed choice based on the best coverage at a low premium.
Things to Consider While Buying Vehicle Insurance
Consider the following factors while purchasing a motor insurance policy for your vehicle.
Coverage
Analyse if you need third-party liability coverage or comprehensive coverage for your vehicle. It is recommended that you opt for Comprehensive insurance for broader coverage.
Add-on Covers
For broader insurance coverage, you can choose from Zero Depreciation cover, Return to Invoice cover, Roadside Assistance cover, etc. But we recommend that you select appropriate add-ons that add value to your coverage.
Claim Process
Opt for a digital insurer such as ACKO for a hassle-free claim procedure. Our digital infrastructure lets you raise claims through our website or mobile app. Or, you can call us to register your claim.
Network Garages
You must consider the insurer’s network garages so that you have access to them across the country and where you reside.
Zero Depreciation Cover
Your vehicle depreciates as soon as it comes out of the showroom. Hence, claim settlements are processed after considering the depreciation. Opting for the Zero Depreciation or Bumper-to-Bumper add-on negates the depreciation factor during claim settlements.
Insured Declared Value (IDV)
The value of the vehicle stated in the policy is the IDV. So, in case of a total loss or when the damages are beyond repair, you receive the IDV after deducting depreciation and applicable deductibles. Ensure you choose the right IDV for your vehicle for the right compensation.
Inclusions and Exclusions
Ensure you understand the inclusions and exclusions of your motor insurance policy. Knowing the terms and conditions of the policy helps you avoid unwanted surprises during claim settlements.
Premium
Check how the premium is calculated and what factors impact the cost of the insurance plan. Clear any doubts before you buy the plan.
Why is Vehicle Insurance Mandatory in India?
Vehicle insurance is mandatory in India as per law. The exponential rise in the number of vehicles on Indian roads has only increased the possibility of accidents. Accidents can cause damages to the vehicle and probably injuries or demise of an individual. The aftermath of an accident can dent your savings due to the cost involved towards repairs and third-party liabilities.
With the possibility of accidents and the subsequent financial impact, The Motor Vehicles Act, 1988 states that all motor vehicles should be insured with the Third-party Liability Plan (TP).
The TP plan offers financial and legal protection against third-party liabilities, including physical injuries or property damage. Motor insurance is mandatory since the Act states that you must hold vehicle documents such as Driving Licence, Registration Certificate, liability coverage, and PUC certificate while driving on public roads. Not holding these documents can lead to penalties; hence, follow the mandate and stay away from penalties.
FAQs: Motor Insurance Questions and Answers
Frequently Asked Questions about motor/vehicle insurance.
FAQs concerning buying or renewing a motor insurance policy
What are the 3 types of motor insurance?
The three types of motor insurance are car insurance, bike insurance and commercial vehicle insurance.
What is motor insurance, and what are its benefits?
Motor insurance is an insurance plan that provides insurance coverage for your vehicle. The main benefits of motor insurance are backup against financial losses and legal liabilities.
What are the motor insurance products?
There are mainly three types of motor insurance products: Third-party Liability Policy, Comprehensive Insurance Plan and Personal Accident (PA) cover.
What is the meaning of motor insurance?
Motor insurance refers to an insurance plan that provides coverage for motor vehicles like cars, bikes, commercial vehicles, etc.
How to check vehicle insurance?
To check vehicle insurance, you can visit the ACKO website or download the app and provide basic details of your vehicle.
Is it mandatory to get insurance for your vehicle?
As per law, purchasing a Third-Party Vehicle Insurance Plan is mandatory. It safeguards you against third-party liabilities.
Are there any eligibility criteria to purchase a motor insurance policy?
As long as you own a vehicle legally, you can purchase a motor insurance policy for it.
What are the different types of vehicle insurance policies available in the Indian market?
The vehicle insurance segment is primarily divided into private and commercial (or) heavy vehicle insurance. The next layer involves selecting either a Third-party Liability policy or a Comprehensive Motor Vehicle Insurance Plan.
What is the basic working model of motor insurance in India?
Vehicle owners purchase policies from certified insurance companies for their vehicles. If the vehicles get damaged, the policyholder raises a claim, the insurer verifies it, and if approved, settles the claim by paying the cost of repairs as per the terms and conditions of the policy. This is the basic working model of motor insurance in India. However, this can differ in special cases like theft or third-party liabilities.
Is it compulsory to insure my car if I use it only on Sundays and drive safely on the highway?
If you are driving a vehicle on public roads, then it must be insured. Not following such a mandate can lead to penalties and legal issues.
How long will the online vehicle insurance policy buying process take?
The online motor insurance policy buying process can be completed under three to five minutes provided you have all the details handy and your smartphone/laptop has a functional internet connection.
How to file a claim against my motor insurance policy?
The first step in filing a claim against a motor insurance policy is to contact your insurer and let them know about the incident for which you want to raise a claim. You can do this by visiting the insurer’s website, by calling them, or by sending an email.
Is it possible to switch to a different insurer as well as a different insurance plan?
Yes, you can choose to avail the services of a different insurer and select another plan while renewing the policy for a smooth transition process. Make sure to spend some time researching about the insurance company and the plan before buying it.
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