In order to protect yourself from the risks associated with driving, you need to purchase an auto insurance policy. However, there are different types of policies and they all come with their own risks and benefits. The best way to know which type is best for you is to compare auto insurance policies and learn about each one before making a decision.
Once you have made your decision and bought an auto insurance policy, there are things that you should be aware of. First of all, make sure that your vehicle has been insured for the same amount as your insurance coverages. Secondly, auto insurance policies sometimes expire if not renewed in time. If this happens, then without a valid policy in place then you will not be covered for any accidents or other incidents related to driving your car.
Auto Insurance:
Auto insurance is an agreement between the insurance company and the insured customer in which the insurance company agrees to pay the claim amount in case of own damage to your car or third party damage due to an insured peril in return for a nominal premium from the insured customer. Auto insurance is also known as Motor insurance or Vehicle insurance.
Auto insurance covers the loss or damage to your vehicle against natural and manmade perils which are mentioned in the policy document. Having an auto insurance policy increases the chance of protection of your vehicle from the insured perils. The financial losses of medical expenses and legal damages arising out of third party liability or damage can be reduced by having a vehicle insurance policy. There are certain rider benefits such as Depreciation cover, Engine cover, Key cover which are offered to the customers on payment of additional premium. This add-on covers to increase the chance of claim settlement from the insurance company as the coverage is wider.
What does NCB stand for in Auto Insurance?
NCB in Auto insurance stands for No claim bonus, which is a form of discount given to the insured customer at the time of renewal for not making any claims during the previous year policy year. No claim bonus discount is given on the own damage section of the Auto insurance policy. The no claim bonus increases level-wise each year from 0% and reach a maximum of 50% within 5 years for each claim free year.
NCB in auto insurance can be availed only at the time of renewal of the auto insurance policy. NCB can be transferred from one insurance company to another at the time of renewal. The limit of NCB in the auto insurance policy copy would be mentioned under the own damage section in the comprehensive policy. No claim bonus would become Nil or 0% under the following scenarios:-
- If filing a claim made in the previous year by the insured.
- If the ownership of the vehicle is changed at the time of renewal.
- If the policy is not renewed within 90 days of the expiry of the previous vehicle insurance policy.
The No claim bonus slabs are mentioned below:
| Claim Free years |
NCB |
| New vehicle |
0% |
| 1st Year |
20% |
| 2nd year |
25% |
| 3rd year |
35% |
| 4th year |
45% |
| 5th year and above |
50% |
No claim bonus discount would be applicable only on the own damage section of the vehicle insurance policy as the third party premium would be decided by the IRDA and the Govt of India. No claim bonus protection add-on is a specific kind of add-on offered by the insurance companies in which the customer can retain the NCB even after making one claim during the policy period. If more than one claim is made during the policy, the NCB would become 0% even though the customer has taken an NCB protection add-on.
No claim bonus as mentioned earlier is a reward in the form of a discount calculated on the Own Damage section of your car insurance policy. The Own damage section premium is first discounted according to the make, model of the car and then the discounted premium is again discounted for the No Claim Bonus thus arriving at the final premium.
| Own Damage Premium |
|
Rs. 20,000 |
| Company Discount |
(-70%) |
Rs. 14,000 |
| Premium after company discount |
|
Rs. 6,000 |
| No Claim Bonus (Fifth claim free year) |
(-50%) |
Rs. 3,000 |
| Premium to be paid after NCB discount |
|
Rs. 3,000 |
No claim bonus is calculated only on the Own Damage section of your car insurance policy and not on the Third party section as the TP premium is decided by the IRDA and cannot be further discounted. If you opt only for Third party insurance then the NCB discount will not be applicable on your car insurance policy. The No Claim Bonus is applicable only if you take the Comprehensive or the Package policy. NCB would not applicable on the add-on section of the car insurance premium.
In case of a claim in any year, the no claim bonus for the next year would become “Zero” and the cycle repeats.
It is important to note that the No claim bonus is given to the car owner/driver of the vehicle and not the vehicle insured. So, in case of vehicle sold or transferred to a different customer, the NCB would not be valid.
Motor Insurance:
Motor insurance is offered to two wheelers, four wheelers and other commercial vehicles. The vehicle insurance has two sections namely the own damage section and third party section. Own damage section covers the loss or damage to the vehicle due to an insured peril and the repair or replacement costs are borne by the insurance company at the time of claim. Third party section covers the bodily injury of third parties and property damage of any third parties due to the insured vehicle. The limit of liability under the own damage section would be Insured declared value as mentioned in the policy document. The limit of liability under the bodily injury of third party section would be unlimited and the claim would be awarded by the courts. call: 1800-123-4003 to get assistance from our motor insurance expert.
Motor insurance can be offered as Stand-alone third party insurance and Comprehensive insurance. While stand-alone third party insurance is mandatory as per the Motor vehicles act, the comprehensive cover is optional. Having a comprehensive cover can increase the chances of claim settlement as the own damage section is also included in addition to the third party section.
Motor insurance in India
Motor insurance in India has been mandatory since 1988 after drafting the Motor insurance act, 1988 which mandated at least third party insurance for every vehicle plying in public places. There were motor vehicles in India in the early 19th century but the motor insurance was made compulsory after many years as there were no laws which would compensate the third parties which are affected in an accident. Let us understand the motor insurance in India in detail:-
Indian Motor Vehicles Act, 1914: The first act under the central legislation, the Indian Motor Vehicles Act of 1914 was passed under British India. With 18 sections in place, the Act enabled the local governments to regulate enforcements and to ensure the registration and licensing of vehicles and motorists to maintain road safety. The Act was later modified in some princely states in 1920 and 1924 and adhered to until the Motor Vehicles Act in 1988.
Motor Vehicles Act, 1988: The Motor Vehicles Act of 1988 made licensing of the motorists and registration of the vehicles mandatory. The Act introduced Learner’s license for all the drivers willing to obtain a license and mandated the use of the “L” board and the company of an instructor when driving in a public place. The Act also laid down rules and regulations for permit control, traffic regulation, motor insurances, and penalties. The Act proposed that no person under the age of 20 is allowed to drive a vehicle in a public place and a learner’s license or driving license should only be issued if he or she meets the eligibility requirement. With the Act, the limitations on third-party motor insurance were lifted and a cap for third-party liabilities up to Rs. 10 lakh for death and Rs. 5 lakh for serious injuries was proposed.
Motor Vehicles (Amendment) Act of 2019: Implemented since September 1, 2019, the Motor Vehicles (Amendment) Act 2019 was passed to ensure road safety with stricter rules. The major provisions under the Act include compensation up to two Lakhs for road accident victims and huge fines for willful offenders. The bill also reinstated a recall of vehicles for all vehicles which may be an unreasonable safety risk to other motorists, the driver, and the environment. With the amendment of the bill, the Central government created the National Road Safety Board as an advisory board on all aspects of road safety and traffic management.
With stricter rules and regulations, the Government aims to control road accidents thereby maintaining safer roads for the public. It is our duty to do our part by following these guidelines in the true spirit.
Vehicle Insurance:
Vehicle insurance is to be taken mandatorily for any vehicle to ply in public places without which the owner/rider would be fined up to Rs.5k or up to 3 months of imprisonment. Any place which is accessible to general public would be considered as the public place for the purpose of insurance. Vehicle insurance can be taken online in 3 simple and easy steps using the our portal or call our toll free number 1800-123-4003.
Types of Motor Insurance in India:
Private Car Insurance Policy: This is motor insurance that needs to be taken for any private car owned by an individual and is mandated by the Government of India. It covers the vehicle for damages against accidents, fire, natural disasters, and theft among others and also covers for any injury to the owner. It also covers any damages and injuries caused to the third party.
Two-Wheeler Insurance Policy: This insurance policy covers two-wheelers like a scooter or a bike and is mandated by the Government of India. The two-wheeler is covered against damages from accidents, disasters, fire, theft, etc. as well as any damages and injuries to the third-party. It also offers a mandatory personal accident cover for the owner rider and can be taken for passengers too.
Commercial Vehicle Insurance: This insurance covers all vehicles that are not used for personal use. his type of insurance covers all those vehicles which are not used for personal purpose. Trucks, buses, heavy commercial vehicles, light commercial vehicles, multi-utility vehicles, agricultural vehicles, taxi/cab, ambulances, auto-rickshaw etc. are some vehicles that are covered under this insurance.
How to purchase Auto/Motor/Vehicle Insurance Online?
Let us understand & follow the steps to keep in mind for selecting the best car insurance in India online.
Policy Bachat: The first point in selecting the best car insurance in India online is to select the best online platform. Policy Bachat is one of the leading online platforms for Car insurance premium comparison in India. We have tied up with almost all the major insurance players in the market thereby offering the customer to choose the best option available. The vehicle insurance can be purchased online using the our portal by entering the basic details such as Make, model of the vehicle, date of registration of the vehicle and the RTO details.
Fill the Details:
Once the basic details pertaining to the car are filled ad submitted you’ll receive a call from the Policy Bachat Team. Agents here are fully trained and equipped with high knowledge to guide you to compare car insurance premium online and select the best policy. The details to be filled would be displayed on the screen for easy understanding. In case you find it difficult to calculate the premium online you can call on our toll free number 1800-123-4003 and get assistance from our motor insurance experts.
Ask for particulars: Our agents collect the information related to vehicle such as cubic capacity, make and model etc., to generate the car insurance quotes online. If there is any requirement from your end, you are requested to pass it to our agents so that they can generate quotes for you to compare car insurance renewal quotes online.
Add-ons: Add-ons or Riders are the extra coverage offered to the vehicle on payment of extra premium. The add-ons or riders such as Bumper to bumper cover, Consumables cover, Engine protection cover etc., would be available on payment of additional premium. The add-ons should be purchased at the time of taking the vehicle insurance policy online as it would not be possible for midterm addition.
Comparison: Once the details are filled a link to compare car insurance quotes online is sent to you on your registered email id. Using this link car insurance premium comparison can be done and the best company can be selected.
Payment: Once the best car insurance in India is chosen with all the required add-ons then you can proceed for payment. Payment can be done with any of the means such as credit card, debit card, online payment etc.,
Instant Policy: Once the payment is done the policy is generated instantly. If you face any issues at the time of payment or policy issuance our agents are here to assist you.
How to check Auto/Motor/Vehicle Insurance Status Online/ How to do vehicle Insurance Renewal Online?
Let us understand & follow the steps to keep in mind for selecting the best vehicle insurance in India online.
Policy Bachat: First point in selecting the best car insurance in India inline is to select the online platform. Policy Bachat is one of the leading online platforms for Car insurance premium comparison in India. We have tied up with almost all the major insurance players in the market thereby offering the customer to choose the best option available.
Fill the Details: Once the basic details pertaining to the car are filled ad submitted you’ll receive a call from the Policy Bachat Team. Agents here are fully trained and equipped with high knowledge to guide you to compare car insurance premium online and select the best policy.
Ask for particulars: Our agents start collecting the insurance information related to car such as cubic capacity, make and model etc., to generate the car insurance quotes online. If there is any requirement from your end, you are requested to pass it to our agents so that they can generate quotes to compare car insurance renewal quotes online.
Add-ons: Our agents will explain you the add-ons which can be taken by paying extra premium. If you require any particular add-on then please pass on the request to agent to enable them to calculate premium using car insurance premium calculator.
Comparison: Once the details are filled a link to compare car insurance quotes online is sent to you on your registered email id. Using this link car insurance premium comparison can be done and the best company can be selected.
Payment: Once the best car insurance in India is chosen with all the required add-ons then you can proceed for payment. Payment can be done with any of the means such as credit card, debit card, online payment etc.,
Instant Policy: Once the payment is done the policy is generated instantly. If you face any issues at the time of payment or policy issuance our agents are here to assist you.
Renewals: The same procedure is applicable for car insurance renewals quotes online. For renewals car insurance renewal premium calculator is used to generate the premium.
How to check Auto/Motor/Vehicle Insurance details by Registration Number in India?
Vehicle insurance details can be found with the registration number of the vehicle. Follow below steps to find the insurance details of any vehicle using the registration number:
Step 1: The first step is to login to the website or download mParivahan app from the play store and Register with your phone number. The link to download the mParivahan app is. After entering the phone number OTP would be sent to the registered mobile number to login. You can login to the app whenever you want to check the insurance and other details of any vehicle using the registration number.
Step 2: The next step in this process is to enter the Registration number of the vehicle you want to know the insurance details about. After entering the registration number the insurance details would be displayed on the screen. The validity of the insurance would be displayed on the screen. It is important to note that the validity of insurance displayed here is the third party insurance validity. The owner name of the vehicle can also be seen on the screen but half of the alphabets would only be seen. On the screen we can also see the age of the vehicle in years and months which could be used to calculate the insurance premium of the vehicle. The fuel type of the vehicle would also be mentioned on the screen. This app can be used to know the validity of the insurance online by using the registration details only.
Step 3: The third step in the process is to download the Registration certificate from the app and save it. The same registration certificate could also be shared using any of the mediums. The screenshot of this would also be enough if you are not carrying the original Registration certificate with you at the time of travelling. Insurance companies would consider this as the registration certificate for the purpose of insurance policy issuance. It is important to remember that the insurance details would take some time to get uploaded onto the system after the insurance policy is issued.