Car insurance, unlike other insurances, is a compulsory legal requirement. If you are planning on purchasing a new car in the New Year or looking to renew your motor insurance, why not opt for an insurance plan that offers you the best in terms of features, benefits, claim reimbursements, and more!
Car insurances provide you with a financial cover in case your car suffers from damage or loss due to calamities natural or man-made. It even covers the legality of third party losses caused by your car!
Auto insurance is provided for private cars, two-wheelers, and commercial vehicles.
For your car, let us take a look at the top 5 car insurance plans of 2017.
This list has been carefully curated considering each car insurance plan’s features, benefits, insurance provider’s claim settlement record, the range of services, customer care, policy coverage, add-on covers, and more such pertinent points.
It includes the private sector general insurance providers, which in recent times have been taking over the public sector in the general insurance category.
Bajaj Allianz Car Insurance
Bajaj Allianz has been providing insurance covers since May 2001. Key features of the motor insurance plan from Bajaj Allianz are as follows:
- With Drive Smart Service you can easily track and monitor your car.
- Bajaj Allianz has a network of 4000+ cashless garages.
- There is a facility of 24 X 7 roadside assistance and towing services.
- Zero Depreciation cover is also available.
- Bajaj Allianz auto insurance benefits you by settling 75% of your claim in case the services are carried out at out of network garage.
- Transfer a maximum of 50% your no claim bonus from your previous car policy.
- Hassle-free car inspection at preferred garages and instant claim assistance.
- The Bajaj Allianz car insurance provides coverage for damage to or loss of car due to natural or man-made calamities.
- ₹200,000 is a cover against personal accidents caused due to traveling, driving, and getting in or out of the car.
- A legal indemnity against loss or damage to person or property, caused to a third party by you while driving the insured car.
- In case you want to, there are several top-up plans available as well. They offer 24 X 7 on the spot assistance, lock and key replacement, accident shield, cover consumable expenses, conveyance benefit as per day cash, and cover personal baggage loss or damage.
- What the car insurance from Bajaj Allianz does not include are the expenses that are incurred due to the normal aging and wear and tear of the car.
- Depreciation and loss related to it.
- Electrical or a mechanical breakdown.
- Wear and tear of tubes and tires unless it is caused by accident, then 50% of the cost is covered by the car insurance policy.
- Automobile used for a purpose beyond its means.
- Damage caused by a driver under the influence of alcohol or drugs or without a proper driving license.
- Damage or loss caused due to nuclear risk, mutiny, or war.
Bajaj Allianz car insurance USP is the benefits under its Drive Smart Service, and it settles 75% of the accounts payable against service received in a non-network garage.
Bharti AXA Car Insurance
Bharti AXA has been operating since 2008 and first to get ISO certified. Main features of an auto insurance from Bharti AXA are:
- Car insurance is provided in a short frame of time with minimum documentation.
- There is a network of 2000+ garages.
- Instantaneous claim assistance through the 24 X 7 customer care.
- Benefits of availing the Bharti AXA motor insurance is that if you install the anti-theft system, you pay discounted premiums and voluntary deductibles.
- A no claim bonus, capped at 50%, is offered on the renewal of car policy.
- On road repairs, towing charges, emergency fuel, and cost of changing tires is covered by the car insurance policy.
- Bharti AXA vehicle insurance provides a cover of maximum ₹7.5L as third party indemnity, up to ₹2L for a personal accident causing permanent disability or death, and ₹10,000 against personal illness.
- Damage or loss of car due to disasters man-made and natural or in-transit is covered under the car insurance.
- Loss or damage of person and property activates the third party legal cover of the motor insurance.
- You can opt for several of its uniquely thought out add-on covers. The depreciation cover provided for maximum five years from the date of vehicle registration.
- Invoice price cover calculates the value of the lost car as a total of insured value + insurance + road tax + registration.
- An additional cover of ₹1L per person for the passengers in case of loss of life or limb under personal accident.
- For covering the medical expenses of the driver and passengers.
- In the case of hospitalization exceeding 30 days, the hospital cash coverage gives you ₹10,000 daily.
Excluded from the car policy coverage is the natural aging of the car, usage of care outside the country, driven by a personal without a valid license or under alcohol and drug influence, in case the car is being used for purposes it is not built for, damages or loss caused due to electrical or mechanical issues, or nuclear contamination or war.
USP of the Bharti AXA car insurance is that it provides medical assistance and cash allowance on hospitalization of above 30 days due to situations covered under the policy, add-on covers are uniquely thought out to provide extra benefit to the insured, third-party indemnity value is as high as ₹7.5L.
HDFC Ergo Car Insurance
Multiple award winner HDFC Ergo was set up in 2002. Highlighting features of the car insurance from HDFC Ergo are:
- A network of more than 3400 cashless garages.
- An array of discounts including no claim bonus, based on profession, age, and members of Automobile Association.
- Instant issuance of online car insurance, no lengthy processes.
- Comprehensive customer care which assists in claim settlement, ambulance, and towing.
- Discounts on the premium for people over 35.
The HDFC Ergo car insurance covers damage or loss of the vehicle due to disasters both man-made and natural, liability to the third party concerning damage or loss of property or life, and a ₹2L coverage against personal accident for driver and passengers limited to the number of seats in the car.
- Add-on coverage provides for the zero depreciation claim, emergency assistance, and return to invoice.
- The car insurance policy does not cover natural aging of the vehicle.
- Damage caused by a person driving under the influence or without a valid license.
- Loss or damage due to electrical or mechanical breakdown.
- Depreciation and associated losses.
- Damage or loss because of war, nuclear radiation, or mutiny, or car taken outside the country.
- 50% damage to consumables like tubes and tires is covered in the event of the damage caused by accident.
HDFC Ergo car insurance USP is that it provides a discount on premiums on the basis of a person’s profession and age, no documentation is required to get the policy, and claim settlement is a quick and painless procedure.
ICICI Lombard Car Insurance
The unique features of the car insurance from ICICI Lombard include:
- A network of more than 3500 garages providing cashless services.
- Roadside assistance takes care of minor repairs, expenses for accommodation, and much more.
- Car insurance policy can be issued online without much paperwork.
- Renewal of an existing car insurance with ICICI Lombard is an equally effortless process.
- Zero Depreciation Cover which includes replacement of parts without any deductions for depreciation.
Benefits of purchasing car insurance policy from ICICI Lombard are that you can transfer your no claim bonus from an already existing policy.
- Garage cash cover provides daily commute allowance till the car is getting repaired.
- The car policy provides coverage against damage or loss to the vehicle due to natural or manmade disasters.
- ₹2L cover for the driver in case of a personal accident. Add-on covers are there for passengers as well.
- Third party loss or damage caused by the car to a person or the property leading to death or permanent disability.
- What the car insurance does not cover is the general wear and tear of the car, electrical or mechanical breakdown, depreciation and consequential losses.
- Damage or loss because of nuclear emissions, war, or mutiny, the driver is under the influence of alcohol or drug or driving without a valid license.
- Vehicles that are used for purposes beyond their limitations.
- Repair of consumables like tires and tubes unless it because of the accident. Even then only 50%of the cost is covered by ICICI Lombard.
Its USP is that the car insurance from ICICI Lombard provides free car pick up service, gives warranty on repairs, online purchase of EMI, and claim settlement is within seven days.
Reliance Car Insurance
Reliance was founded in 2000. Certain key features of the vehicle insurance policy from Reliance are:
- You get free roadside assistance of up to ₹500.
- 2400+ garages provide cashless services for Reliance car insurance customers.
- Renewing an existing policy or getting a new one online is an easy process requiring no documentation.
- Claim settlement is hassle free and quick.
- The Reliance car insurance covers damage to or loss of car because of transit, and manmade and natural calamities.
- 24 X 7 roadside assistance within the 25 km radius of the breakdown. It includes accommodation arrangements, emergency fuel, backup keys, tire punctures, towing, battery jump start, or minor repairs.
- Third party legal cover against death or permanent disability of a person and damage or loss of property.
- You can customize you car policy by taking up some of the top-up covers. They include electrical and nonelectrical accessories, bi-fuel kits that have the LPG/CNG system, speed and racing tests, legal liability towards paid driver, employee, conductor, and cleaner, and hill climb and dexterity trials.
- The car insurance excludes general wear and tear of the automobile.
- Electrical or mechanical breakdown.
- Cars being used for unintended purposes.
- Damage to the car or its loss caused by a person driving under the influence of alcohol or drugs, or without a valid driver’s license.
- Damage to the car or its loss due to depreciation.
- Only original damage is covered not the consequential damage.
- If the network garage is beyond the 25 km radius of the breakdown, there will be charges for roadside assistance.
- Damage or loss because of nuclear risks, mutiny, or war.
- Compulsory deductibles.
Reliance car insurance USP is the roadside assistance within a 25 km radius, the unique top-up cover that includes one for the dual fuel system, climbing trials, speed tests, and for employees associated with the car like a driver, cleaner, etc.
Premium calculation is done on the basis of the make of the car, its sub-type, year of registration, and city of your residence.
Let us take a quick glance at the top 5 car insurance plans of 2017.
|Car Insurance Plans||Premium (in IN₹)||Claim Settlement Ratio (in %)||Preferred Garages|
All the above-mentioned car insurance policies have their own standout points. But they all are at the top of the charts because of their innovative auto insurance plans and exceptional customer service.
The trend in the car insurance sector is on the rise. As per IRDA Annual Report TechSci Research, September 2015, the capital portion of 39.4% of the insurance market is captured by the motor insurance alone.
Though getting car insurance is a mandatory requirement, more and more people are opting for auto policies that provide them with multiple benefits.
Auto insurance providers are also coming up with policies that cover maximum eventualities giving the insured peace of mind and no extra financial burden.
The above-mentioned car insurance providers have a solid share of the non-life pie, especially in the auto sector.
Choose any one of the above-mentioned car insurances for your vehicle this 2017, and you will not regret it!