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Types of Vehicle Insurance & how to claim it ?

12 October, 2018

Your vehicle is one of the most valuable possessions of your life. Thus, it deserves the best care and protection. Motor insurance is designed to protect you, as a vehicle owner, from third party liability as well as damage to your vehicle.



Vehicle Insurance in India


In India, vehicle insurance is available in two types of coverages:

  1. Third-Party Liability Cover: Here, the motor insurance policy covers only the financial liabilities arising from third-party damages, injuries or death. It does not cover ‘own-damage’ to the vehicle, injuries to the owner-driver or theft of the insured vehicle.
  2. Fully Comprehensive Package Policy: Package policies cover both third-party liability and own damage. Own damage insurance protects the vehicle owner from financial loss from loss of or damage to the vehicle itself caused by fire, accident, flood, landslides, theft, malicious damage, riots and other such perils.


There is also a personal accident component to motor insurance. The Personal Accident Cover with vehicle insurance covers only the owner-driver. Leading insurance companies in India, including Royal Sundaram, offer an in-built Personal Accident Cover of ₹15 lakhs with their vehicle insurance plans. You can buy a separate Personal Accident Cover for other people (family members) who might drive your vehicle.


According to the Motor Vehicles Act, all vehicles plying on public roads must compulsorily have Third-Party Liability insurance. This protects the owner from any liability arising from third party death, injury or property damage.


However, it is recommended to buy a fully comprehensive package policy for your vehicle to ensure an all-round coverage for any eventualities that may befall your vehicle. 


There are different policies for different classes of vehicles:


  • Private car insurance policy for vehicles owned by individuals or other entities which are not used for commercial use such as for hire and reward.
  • Two-wheeler policy for motorcycles, scooters and mopeds, not used for commercial purposes.
  • Commercial vehicle policy is used to protect goods carrying vehicles, taxis, buses, and all other types of vehicles.


 What’s not covered under a vehicle insurance policy?


  • Wear and tear of the vehicle
  • Claims that arise due to contractual liability
  • Any loss or damage due to nuclear perils or war
  • Mechanical and electrical breakdown
  • If the vehicle is used outside a prescribed geographical area
  • Aggravated damage
  • If your vehicle is driven by a driver who does not hold a valid license


How to file a claim under vehicle insurance?


If you have a vehicle insurance policy, then you need to make sure that you file a claim immediately after your vehicle is damaged or if you meet with an accident. The procedure to file a claim differs as per the circumstances that caused the damage. Following are three major situations in which you can file a vehicle insurance claim.


1. In the case of own damage claim –

  • Inform the insurance company by calling on their customer services number or other modes and intimate a claim
  • Submit the duly filled and signed (only by insured) claim form along with copies of Registration Certificate and driving license
  • Get the help of the insurance company in finding an appropriate garage to repair your vehicle
  • Do not start repairs or dismantling of the vehicle until it has been inspected by the insurance company (or a representative) and type of settlement has been finalized.
  • Other documents such as FIR copy etc. may be requested by the company
  • For cashless claim, once the repairs have been completed, you may collect your vehicle after paying your portion of the repair amount.
  • For non-cashless claims, you may pay the repairer in full and submit original repair bills to the insurance company for appropriate reimbursement.


2. Third-party claim:

  • Informing the nearest police station is a must
  • Intimate the insurance company as soon as possible
  • Submit a duly signed claim form, along with FIR copy, RC copy and Driving License copy
  • Other documents that are requested by the company must be submitted at the earliest


3. Theft claim:

  • Firstly, inform the insurance company and the police about the theft.
  • The insurance company will be sending a detailed process along with details of the investigator.
  • Submit all documents requested by the insurance company.
  • You must cooperate with all investigations of the insurance company (or a representative).
  • If the vehicle is not traced, obtain the Non-Traceable Certificate from the police and 173Cr.PC issued by a criminal court
  • If your claim is approved, submit any remaining documents before the settlement of the claim.


Things You Need to Know While Making a Vehicle Insurance Claim –


  • The claim should be filed with the insurance company immediately with all the policy particulars.
  • Duly filled-in claim form, signed by the insured, needs to be submitted to the insurance company. Driving license and original registration certificates need also be submitted for verification, along with photocopies.
  • You need to file an FIR where third party injury, death or property damage is involved.
  • Depending on the requirement of the claim, the insurance company would ask you for additional documents, if any.


How to Buy Vehicle Insurance Online?


With the advent of technology, you don’t have to visit an insurance company in order to buy insurance for your vehicle. Royal Sundaram offers feature-rich and affordable vehicle insurance plans – car insurance and bike insurance, online on their website. You can also download their mobile app to access all the features from your smartphone.


To buy a vehicle insurance policy online from Royal Sundaram, simply follow the following step:


  1. Go the Royal Sundaram website
  2. On the Home Page, choose ‘Car Insurance’ or ‘Two-Wheeler Insurance’ as per your specific needs
  3. Input all the necessary information about the vehicle as well as your personal details as prompted by the screen
  4. Select the tenure of your policy – 1-year policy, 2-year policy, etc.
  5. Provide all the other requisite details
  6. Select any add-ons you want
  7. The screen will calculate the final payable premium
  8. Make the payment online
  9. The soft copy of the Vehicle Insurance Certificate will be mailed to you on your registered mail ID


Thus, it is seamless and hassle-free to buy, renew and claim vehicle insurance on the Royal Sundaram website. For more details, get in touch with us today!