So, you have got this dream car after much straining your budget and cutting docwn other expenses. With considerable deliberation and thought given over to your choice of company, model and the dealership, you feel you have landed a good deal. However, have you given as much thought to the car Insurance that you are taking up, that would protect your car , once on the road, at the mercy of the ravaged and pot-holed roads, the tumultuous weather and the not-so –reliable driving skills of random drivers / stray animals / jaywalking pedestrians plying on the road?
With the onslaught of abundance of information and awareness being on an all-time high, most car owners have now become much more responsible about analysing the pros and cons of the variety of Insurance schemes available in the market. It is advisable to compare the Insurance policies provided by different companies on other parameters too and not just cost.
What is the Car Insurance?
It is a mutually agreed agreement between you and the Insurance Company which assumes the responsibility of covering up your losses in case of any unforeseen eventuality, in lieu of a premium amount to be paid by you on a regular basis.
Type of Car Insurance
This falls under broadly two categories:
- Third Party Insurance (Type I) / Compulsory Insurance Policy: This insurance falls under the mandatory compliance directive of the government for any moving vehicle on the public road as laid down by the Motor Vehicles Act of 1998. This ensures that the insurance company shall compensate for the loss of property or life or damage of vehicle of the aggrieved third party.
The Insurance shall however not assume any responsibility to compensate for the damage of your asset or life or medical expenses of any kind. Legal liability to pay compensation to the other party for life, injury or vehicle may however be included with a special rider.
- Comprehensive Insurance: This gives you complete insurance coverage for any damage to your own self resulting in loss of life / injury of any kind / damage to the vehicle and also legal liability towards the other party. Theft / unforeseen calamities like earthquake, flood and fire are also covered within its blanket. This is the preferred Insurance policy for those who do not believe in counting the penny and losing the pound.
- Apart from that there is facility of Add-on Insurance (Zero Depreciation Cover, Roadside Assistance Cover, Engine Protection Cover, Return to Invoice Cover, No Claim Bonus Protection Cover, Personal accident Cover, loss of Personal Belongings Cover) , Personal Accident Cover, Bundled Car Insurance which are worth looking into, before finalising the deal.
- Insured Declared Value
All Car Insurance Premiums shall be based on the Insured Declared Value (IDV), which is the current market value of your car and the maximum amount which can be claimed under the Motor Insurance Act. It is subject to decline with each passing year. It will also depend on the location you are residing and the cubic capacity of the car which means bigger the city/ car, greater the premium value.
The Top Five Car Insurance Companies of 2017-2018
In no particular order, the following companies featured in the last financial year’s top list. Mentioned along with this are the two basic parameters to analyse the efficacy of a Car Insurance Company:
- Incurred Claim Ratio (I.C.R) for each company profile , which is an indicator of the company’s ability to settle claims and calculated on the basis of claims cleared by them divided by the total sum of Insurance Premium collected by them in the given duration.
- Status of Grievance which is the total number of complaint attended by them as compared to the number of complaints lodged during the same financial year (2016-2017).
List of Top 5 Companies which ranked high in the last financial year
ICICI Lombard GIC Ltd:
Known for their simple, hassle free claim settlement this joint venture of ICICI with Fairfax Financial Holdings Ltd provides complete set of Insurance for Vehicles.
- A network of 3500 garages across the country.
- Cashless Claim settlement facility
- Doorstep Surveyor facility.
- Online purchase available on EMIs.
- I.C.R – 78.91% and Status of Grievance : 97.61
HDFC ERGO General Insurance Co. Ltd:
The joint collaboration between HDFC and ERGO International AG, this company offers insurance related to motor, health and travel.
- Around 3400 authorised garages across the country.
- Benefit of cashless claim service
- 24 hours approval time
- Transparent claim settlement
- Limited documentation for application
- Discounts based on professions and age.
- Dedicated Customer Service Team.
- Competitive Claim Settlement Ratio in the private sector
- I.C.R – 89.43% , Status of Grievance : 100
New India Insurance Company Ltd:
This is a nationalised venture, backed by a strong asset foundation and capital. It is globally active and known for its innovative insurance offers.
- Claim settlement within 3 working days
- Surveyor inspection within 48 hours of intimation.
- Claim payment in minimal duration.
- All grievances are settled within 15 days.
- I.C.R : 86.95% , Status of Grievance : 99.19
The Oriental Insurance Company Ltd:
Set up in 1947, this company provides various add on benefits and nil depreciation cover, alternative car benefit and free emergency benefit services in the public sector. It has long been one of the prime choices for car insurers in India, collecting many awards for its excellence in business and strong financial network.
- Quick Claim Settlement facility.
- Offers a range of add-on covers for the policyholders.
- I.C.R : 126.66% , Status of Grievance: 95.36
TATA AIG General Insurance Company Ltd:
A joint venture of TATA group and American International Group this company provides the unique advantage of 12 add on covers to personalise the Car Insurance plans and No- Claim bonus along with roadside assistance.
- Free Car Pick-Up Service.
- Cashless Claim Settlement facility.
- Warranty on Car Repair.
- Cashless Claim settlement facility.
- No Claim Bonus
- Road side Assistance
- Competitive Claim Settlement within 7 working days
- I.C.R: 86.95%, Status of Grievance: 99.93.
Be prudent, be wise and stay secure with your choice of the best Car Insurance Provider, today.
- You may also like to read: Best Health Insurance Companies in India