Car Insurance FAQ

Its required by law to do so. Secondly, you get covered for all damages to your vehicle, or if it gets stolen.

There is no difference in insurance coverage across companies, although prices do vary. Some companies offer Zero Depreciation covers, which are usually more expensive, and offer full coverage of parts and replacement.

Motor Insurance is very simple.

• Always look at buying regular coverage or Zero Depreciation covers
• Look at car value to be insured. Most insurers use standard formulas – also called Insured Declared Value. This is the value for which your insurance is valid.
• The actual Premiums vary from company to company – but the coverage is standard and exactly the same. So going for the cheaper option is always sensible.
• Some of our customers are particular about adequate Cashless Garages in their locality that each insurer have tie-ups with.

Simple. In regular covers, when you claim insurance for any damage or repair, the insurance company would
deduct some amount and make you pay for it. Wondered why. That’s what they call “Depreciation charges”. So,
you had a claim of 20,000 rupees but the insurance company paid only 15000 to the garage and you had to pay
the balance. The balance 5000 is called Depreciation charges. If you had taken a Zero Depreciation cover, the
insurance company would have paid the entire amount of 20,000 rupees.

If your car is less than 3 years old – take Zero DepreciationRepair costs of luxury car models are very expensive, especially since you go to the authorised dealers usually. Go for Zero Depreciation covers. Otherwise, look at
the difference in premiums and decide. Zero Depreciation covers are expensive, sometimes by even 50%.

No Claim Bonus (NCB) is your bonus for driving or riding carefully and not making a claim. You get a discount on your premium. Starting from 20% going all the way to 50%. So be careful on the road. If any claim is made,
however small, the no claim bonus is lost.

Yes! Absolutely. Your No-Claim Bonus is freely transferable to another insurance company. When you renew
your policy via PolicyKlub, you have to do nothing; we simply get the no claim transferred instantly to the new
company policy.

Deductible or “excess” is the amount over and above, the claim payable. This ranges ranging from Rs 50 for two-wheelers to Rs 500 for Private Cars and Commercial Vehicles. Increase in the cubic capacity/carrying capacity
of the vehicle increase this cost. In some cases the insurer may impose additional excess depending upon the
age of the vehicle or if there is a high frequency of claims.

Changes like that of an address or modifications to the vehicle or its use will be done by an Endorsement by the
insurance company. All you need to do is submit a letter to the insurer with proof of the changes. Some
endorsements may require you to pay an additional premium.

If your vehicle is registered in Chennai, the rate applicable for Zone A is charged. Even when you shift to a
different city/town, the same rate will continue to be applied. Similarly, if a vehicle is registered in a town, it
attracts Zone B premium rate. Subsequently, if the owner shifts to a metro, he will continue to be charged the
Zone B rate.

As per Rule 141 of Central Motor Vehicle Rules 1989, a certificate of Insurance is to be issued only in Form 51.
It is only in Motor Vehicle Insurance, apart from the policy, that a separate certificate of insurance is required to be issued by insurers. This document should always be carried in the vehicle. The policy should be preserved
separately at home/office.

Inform your insurer immediately. Any modification to your vehicle will make a difference to your policy. It could get cancelled. Make sure all modifications are updated in your policy.

Yes, the insurance can be transferred to the buyer of the vehicle, provided the seller informs in writing of such
transfer to the insurance company. A fresh proposal form needs to be filled in. And there is a nominal fee
charged. This needs to be done within 14 days of the change of ownership.

No. Registration and insurance of the vehicle should always be in the same name with the same address.
Otherwise, the claim is not payable.

Yes, you can. When you buy through PolicyKlub, you automatically get registered and your login id and
password are sent by mail. Use this to access your policy anytime for a fresh printout.

Different companies have different requirements. Here are a few things you will need: Filled claim form, RC
copy of the vehicle, an Original estimate of the loss, Original repair invoice and payment receipt. In case the
cashless facility is availed, only repair invoice would need to be submitted and FIR, if required. For theft claims,
vehicle keys along with non-traceable certificate need to be submitted.