What does this insurance policy offer you?
The motor insurance policy is a comprehensive policy that includes the "Third
Party Only Cover" and the "Own Damage Cover". Under the Third Party
Only Cover, we cover you against any loss caused to a third party in an accident.
The Own Damage Cover will cover the cost of repairs to the vehicle if it is damaged
in an accident. Also the owner-driver of the vehicle has a compulsory personal accident
cover for an amount of Rs. 2,00,000/-.
The difference is in the services of the company in terms of speedy policy issuance,
claims settlement within six days of submission of receipt.
What are the different types of Insurance policies available?Is it compulsory to take a comprehensive cover?
You can either opt for a Third Party Cover or a Comprehensive Policy. In India,
it is compulsory to have a Third Party Policy that covers you against legal liability
for injury or death or property damage caused to any third party in an accident.
This policy does not cover damages or loss caused to your own vehicle in an accident
or theft.
A comprehensive policy, on the other hand, covers both acts only cover and own damage
cover which insures your vehicle against any loss or damage. It is not compulsory
to have a comprehensive cover, though; it is advisable to have one.
What are the various risks covered under the Own Damage Cover? Can this cover be
taken on a stand-alone basis without taking the Act Only Policy?
The Own Damage cover is always sold as a part of a Comprehensive Motor Insurance
Policy. It cannot be taken on a stand-alone basis. It covers loss or damage to the
vehicle and accessories/fittings (if insured) arising out of the following risks:
- Fire, explosion, self-ignition or lightning
- Burglary housebreaking or theft
- Riot and strike
- Earthquake (fire and shock damage)
- Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone, Hailstorm
- Accidental external means
- Malicious Act
- Terrorist Activity
- Whilst in transit by road, rail, inland waterway, lift, elevator or air
- Landslide, Rockslide.
Are any of the covers optional? Will the premium change by the number of covers?
In case of a Third Party Cover, there are no optional risks which means you have
to take the full cover. This is also a compulsory cover which you must take before
you drive your vehicle around in India.
In the case of a Comprehensive policy, you can choose to insure passengers travelling
in the vehicle, drivers, accessories, by paying additional premium.
On what basis is the premium calculated?
The factors that decide the premium are:
- Insurance value or IDV
- Cubic capacity of the vehicle
- Place of registration
- Age of the vehicle
- Type of cover- whether comprehensive or third party only
If you enjoy any No Claim Bonus, the No Claim Bonus is deducted from the premium.
If you add any optional covers such as personal accident cover for drivers or passengers
or for accessories etc, additional premium will be added on to the basic policy
premium.The premium amount so obtained is rounded off to the nearest rupee.
Are policies offered for a short period? How is the premium calculated?
Yes we do issue policies for shorter periods of time if required.
Also a short period policy can only be issued for package (comprehensive) policies.
The premium in such cases is charged on the basis of the short period rate defined
by the Motor Tariff.
To know how premium is calculated view the table below.
|
Period % Of Annual Premium rate
|
|
|
</ = 1 month
|
20%
|
|
> 1 month but </= 2 months
|
30%
|
|
> 2 months but </= 3 months
|
40%
|
|
> 3 months but </= 4 months
|
50%
|
|
> 4 months but </= 5 months
|
60%
|
|
> 5 months but </= 6 months
|
70%
|
|
> 6 months but </= 7 months
|
80%
|
|
> 7 months but </= 8
|
90%
|
|
> 8 months
|
Full Annual Premium Rate
|
Can imported cars be insured and what are the documents required?
For insuring an imported car, you need to give us the custom documents for the car,
including the invoice, the bill of entry, octroi receipt if available and any other
related documents.
Can the music system or other accessories be insured?
Accessories can be insured under a comprehensive policy for an additional pressure.
Incase these are factory fitted they are automatically insured under the policy
however you need to insure them separately if you have them installed later. You
will have to buy an additional cover to insure the accessories. For this, you will
only need to give us a letter stating the model, serial number and cost of the system.
Once our regional office receives your application, they will then give you the
premium amount, which is normally calculated as 4% of the sum insured plus applicable
service taxes.
What risks does the Personal Accident Cover for Owner-Driver cover under an Act
Only Policy?
This cover is applicable only if the vehicle is registered in name of any individual.
The Personal accident cover covers risks like:
- Death
- Loss of two limbs or sight of both eyes or
- Loss of one limb or sight of one eye
- Permanent Total disablement from injuries other than the above
What is the geographical area where the policy is valid?
The policy is valid in the whole of India. It is also valid in the SAARC countries
like Bangladesh /Bhutan / Nepal / Sri Lanka /Pakistan / Maldives
How is the insurance value for a vehicle decided?
The insurance value considered for a vehicle is the ex-showroom price of the vehicle
in the place of registration less depreciation as per below mentioned table.
For vehicles over 5 years old, the insurance value is decided as per the market
value mutually agreed between insured and insurer.
The depreciation is calculated as follows
|
Age of the Vehicle
|
% of Depreciation
|
|
Not exceeding 6 months
|
5%
|
|
Exceeding 6 months but not exceeding 1 year
|
15%
|
|
Exceeding 1 year but not exceeding 2 years
|
20%
|
|
Exceeding 2 years but not exceeding 3 years
|
30%
|
|
Exceeding 3 years but not exceeding 4 years
|
40%
|
|
Exceeding 4 years but not exceeding 5 years
|
50%
|
|
Note. IDV of obsolete models of vehicles (ie. Models which the manufacturers have
discontinued to manufacture) and vehicles beyond 5 years of age will be determined
on the basis of an understanding between the insurer and the insured
|
While selling the car what are the options available for the insurance policy?
You have two options, either you can transfer this policy to the new owner of the
vehicle or you can ask the new owner to buy a separate policy and then get this
policy cancelled. The policy can be cancelled only once the company receive a copy
of the new policy since any car has to be insured at least against Third Party liability.
What happens to the No Claims Bonus once the car is sold?
You can then enjoy the No Claims Bonus on the premium for your new vehicle if you
purchase it within 3 years from date of cancelling / transferring the policy.
What is a cover note and what is its validity?
A cover note is valid for 60 days from the date of issue. It is an interim document
to signal the start of your motor insurance before sending you your policy pack.
Hence it has a limited validity.
Will a duplicate policy be issued if it is lost? What are the charges?
A duplicate copy of the insurance policy in case your original document gets lost.
A nominal fee of Rs.50/- will be charged for issuing a duplicate policy.
When does my insurance cover start?
In case of a new policy, the insurance cover starts the day your cheque your cheque
is accepted.
In case of a renewal, the insurance cover starts from the date of expiry of the
previous policy.
I am being transferred from Mumbai to Delhi or I am shifting my residence from Mumbai
to Delhi, Does that affect my policy in any way? Or Do I need to make any changes
in my policy?
- The first change that you will need to make is in your mailing address. Visit any
of our regional offices or send an address change request letter with your new mailing
address.
-
The second change could be that in the premium. Motor insurance rates are decided
on the basis of the zone of registration of the vehicle - all metro cities (Ahmedabad,
Bangalore, Chennai, Hyderabad, Kolkatta, Mumbai, New Delhi and Pune) are part of
Zone A which has a higher rate of premium than the rest of the country (Zone B).
What is the benefit that I will get if I am a member of the Automobile Association?
You can get a discount of 5% on the own damage premium subject to maximum of Rs.200/-
for a private car and Rs.50/- for a motorized 2 wheeler.
However, your membership must be valid at the time of taking the policy and you
must submit a copy of the card along with the proposal form.
What is NCB and how does it work or is it calculated? Or what is NCD and how does
it work or is it calculated?
NCB stands for No Claim Bonus and is also called a No Claim Discount. It is a discount
that you enjoy on the "Own Damage Cover" in a comprehensive policy if
you have not made any claims under the policy during the previous twelve months
of a policy.
Each "no claim" year of a motor policy entitles you to a percentage discount
which increases as the number of "no claim" years' increase. For example,
if you have made no claims for 1 year, the discount is 20% of the own damage premium.
If however, you have made no claims for 2 years, the discount rate increases to
25%, with the maximum rate of discount being 50%. The NCB applies to a particular policyholder and not to a particular vehicle, which
means, if you enjoy NCB on your current policy, and if you sell the vehicle insured
under the policy, you can still retain the NCB and use it on another policy for
another vehicle within 3 years. The motor tariff prescribes the table of discounts
for calculating NCB. The rate of discount that applies depends only on the number
of years there has been no own damage claim and nothing else.
I enjoyed NCB of 35% with another company. How do I use it on a policy with Reliance?
You can either give a NCB certificate or declare the rate of NCB in a separate declaration
stating the rate of NCB and the name of the insurance company. Based on this declaration,
we will work out your premium after calculating the applicable discount.
As part of the policy process, we will seek confirmation of your NCB status from
your old insurer.
What is loading? Do you charge this? How much loading can be charged?
Loading is an additional premium, which is paid at the time of renewal of insurance
policy if the claims experience during the policy term has been adverse.
Is there any discount available if I install anti-theft alarm and locking system?
There is a discount available if you install anti-theft devices in your vehicle
provided the device is approved by the Automobile Research Institute of India and
installation approved by automobile associations.
Does extra premium have to be paid in case of a claim last year?
There is no extra premium that is payable in case of a claim but if the claim experience
is bad then some loading may be charged as per company policy. You only lose your
No Claim Bonus that you could have enjoyed had there been no claim on the policy.
How do I pay my renewal premium?
You have to pay the renewal premium by cheque/demand draft favouring Reliance General
Insurance Co. Ltd. I can also send an officer across who will collect the cheque
as well as explain to you the latest value added services that we are offering.
Why should the policy be renewed before its expiry date?
It is advisable to renew the policy much before the renewal date. There are certain
benefits of doing so:
- You will continue to enjoy your no claim bonus so long as there is continuity in
the policy
- You will not have to get any survey done at the time of renewal
- It is mandatory to have your vehicle insured at all times
What does "excess" mean? What is the benefit of availing this excess?
Excess means the amount that you will bear in case of a claim. This amount is deducted
from the claim amount. All policies carry a compulsory excess of Rs. 500/- or 1000/-
as per the cubic capacity of the vehicle. If you voluntarily opt for a higher amount,
you will receive a discount in the premium.
Can my claim be rejected?
Any claim can be rejected by an insurance company in certain conditions. Some common
reasons for which a claim may be rejected are:
- The policy has expired, or policy has been cancelled or the premium cheque has been
dishonoured making the policy invalid.
- It could also be that the date of accident or loss falls outside the policy period
or
- The person driving the vehicle at the time of the accident did not possess a valid
driving license or was under the influence of drugs or alcohol.
- There are also situations where the ownership of the vehicle has changed but the
Insurance Company has not been informed within 14 days of such change or the claim
was for damages that existed before the policy started.
- Some other reasons could be that the nature of damages does not co-relate with the
cause of accident or that the vehicle was being used for other than personal or
social purposes.
My car met with an accident but I was not driving it, it was being driven by XYZ.
Can I still make a claim?
You are covered against the loss provided XYZ
- Had a valid driving license
- Was not driving under the influence of alcohol or drugs
- Was not carrying out any illegal activity
- Had not contravened/ disobeyed any law
- Was driving your vehicle with your consent
What if my car meets with an accident & I do not incur large damage. Is it still
compulsory to lodge a claim or I can choose not to claim? Or is it advisable to
make a claim on small amounts
It is not always necessary to lodge a claim especially if the damage is small. Actually,
It is not advisable to make a claim for small damages because, not only will you
have to pay for depreciation and excess, reducing the claim amount to an even smaller
figure, but you will also lose your 'NO CLAIM BONUS' (if any) at the time
of renewal.
However, once you have decided not to claim, you cannot claim these damages at a
later stage.
What am I not insured for?
Your policy does not cover you for :
- General ageing, wear & tear
- Mechanical or electrical breakdown or failure
- Depreciation and any consequential loss
- Damage to tyres and tubes and accessories, unless damaged in an accident or the
vehicle is stolen
- Damage by a person driving without a valid license
- Damage by a person driving under the influence of liquor or drugs
- Loss/damage attributable to war, mutiny or nuclear risks
- Loss/damage outside India
- Wilful damage
- Hire or Reward
- Carriage of goods (other than samples or personal luggage)
- Pace making
- Speed testing
- Reliability Trials
Will I get the entire amount if my windscreen is damaged?
You do get full reimbursement for the windscreen glass. However, there is a depreciation
of 50% on the rubber lining and sealant. Additionally, you will also need to bear
the policy excesses.
