Car Insurance Faqs

The Private Car can be used for social, domestic and pleasure purposes and also for business purposes excluding the carriage of goods other than samples by the insured or his employees. The Insurer will protect the customer against any loss or damage to the Private Car and its accessories whilst thereon for the following events:- Fire, explosion, self ignition or lightning - Burglary, housebreaking or theft Riot or strike Earthquake (fire and shock damage) - Flood typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost - Accidental external means Malicious act Terrorist activity Whilst in transit by road, rail, inland- waterway, lift, elevator or air Land slide, rock slide What are the exclusions under Private Car package policies? The exclusions are: Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failure or breakages Any damage to tyres and tubes unless the vehicle is also damaged. The liability of the Insurer will be restricted to 50% of the cost of replacement if the claim is admitted. If the private car is driven by a person who is under the influence of intoxicating liquor or drugs at the time of loss Driving without a Valid Driving Licence.

If the vehicle is used for hire or reward, carriage of goods other than samples, racing and other racing related purposes and motor trade purposes. What is the third party liability covered under Private Car package policy? The Insured will be covered for any liability arising from any accident caused by or arising out of the use of the private car in respect of: Death or bodily injury to third parties (unlimited liability) Damage to the third party property (minimum of Rs.6000/- and max of Rs.7,50,000 What is the period for which a Private Car policy is issued? All motor policies are annual policies issued for a period of twelve months. However for the purpose of renewal an extension to a further period (which should be less than 12 months) can be allowed with the approval of a competent authority. An additional premium will be collected for such extensions. Period less than 12 months can be given on Short Period basis only with the approval of the competent authority. When do we require a proposal form from the customer? We require a proposal form in the following situations New Business Other Company renewal - On Transfer of Interest.

On conversion of Liability Only cover to Package PolicyChange / Substitution of the vehicle - On alteration / improvement of vehicle either during the period of the policy or during renewal When do pre acceptance inspections need to be carried out? Customer need to produce the vehicle for inspection under the following circumstances: - In case of break in insurance In case of conversion of TP cover to OD cover In case of covering imported vehicles - In case of fresh payment received after cheque bounceAn authorized person from the Underwriting department will inspect the vehicle. What are the factors that determine the premium rating for Private Cars? The premium rating for Private Cars is based on the following factors Insured's Declared Value (IDV Cubic Capacity of the Geographical Age of the vehicle What are the zones under which Private Cars are rated? For the purpose of rating, the whole of India is divided into two zones depending upon the place of registration. The zones are:Zone A - Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi and Pune.Zone B - Rest of India What is Insured Declared Value (IDV)? And how is it calculated?

IDV means Insured's Declared Value. It is the value of the vehicle, which is arrived at by adjusting the current manufacturer's listed selling price of the vehicle with depreciation percentage as prescribed in the Tariff. Manufacturer's listed Selling Price will include Local Duties/Taxes, excluding Registration and Insurance.For the vehicles that are obsolete or aged over 5 years, the IDV will the value agreed between the Insurer and the Insured. The value of the obsolete vehicles and the vehicles aged over 5 years are arrived by our Assessment Team with the help of various resources like IMAs, Panel of Surveyors, Car Dealers, Second Hand Car dealers, etc. Depreciation slabs for arriving at IDV are below: SCHEDULE FOR DEPRECIATION FOR ARRIVING AT IDV AGE OF THE VEHICLE % OF DEPRECIATION FOR FIXING IDV Not exceeding 5% Exceeding 6 Months but not exceeding 1 Year 15% Exceeding 1 Year but not exceeding 2 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 50% What are Electrical Electronic accessories in a private car.