Car Insurance and Types of Private Car Insurance

Find out Car Insurance and Types of Private Car Insurance, Exclusions, Premium effecting factors and different add ons used in this Private car policy.

Private cars are used for domestic, Professional (excluding goods or passenger carrying vehicles) purposes.Private Cars mainly divided in to 2 types

  • Motorized three wheeled vehicles including motorized rickshaws / cabin body scooters used for private purposes only.
  • Motorized four wheeled vehicles

Private Car Insurance

The premium s may mainly depends on 4 factors

  • Insured Declared Value
  • Geographical Zone
  • Cubic capacity of vehicle
  • Age of the vehicle

Insured Declared Value

  • IDV full form is Insured Declared Value of the vehicle.
  • IDV called as SUM INSURED of the vehicle.
  • It will be fixed at the commencement of each policy period for insured vehicle.

Geographical Zone

Whole country has been divided into four zones. Premium rate varies depending on zone where vehicle has been registered

  • Zone P1: Delhi, Punjab, HP, Haryana, J & K, Chandigarh.
  • Zone P2: Uttar Pradesh, Uttaranchal, Rajasthan, Bihar, Jharkhand, Maharashtra, Goa.
  • Zone P3: Gujarat (Daman, Diu, Dadar & Nagar Haveli), Andhra Pradesh, Karnataka, TamilNadu, Pondicherry, Madhya Pradesh, Chattisgarh, Assam & North Eastern states, Andaman& Nicobar.
  • Zone P4: West Bengal, Orissa, Kerala, Lakshadweep, Sikkim.

Cubic capacity of vehicle

  • Private cars divided in to 3 categories depending on cubic capacity.
  • Minimum Insured Declared Value (IDV)changes depending on cubic capacity.
Cubic CapacityMinimum Value
Below 1000 ccRs. 15,000/-
1001 cc to 1500 ccRs. 20,000/-
Above 1500 ccRs. 30,000

Age of the vehicle

Based on age of vehicle own damage cover (section I cover) premium will change in comprehensive/package policy.

Types of Private car Insurance

There are two types of car insurance available.

Liability Policy

  • This covers Third Party Liability for bodily injury or death or both and Property Damage. These claims are settled through courts.
  • Personal Accident Coverage for Owner-Driver included in Liability Policy.

Package Policy/Comprehensive policy

  • Along with Liability cover Package policy/Comprehensive policy covers damage to the vehicle insured known as Own Damage cover.
  • Package policy total 3 sections are there

Section I : Own damage cover to the Insured vehicle

  • Natural calamities like Fire, Explosion, Self-ignition or Lightning, Earthquake, Flood, Hurricane.
  • Other factors like Burglary, Theft, Riot, Strike, Malicious Act, Accident by external means, Terrorist Activity, Any damage in transit by road/rail/Inland waterway/Lift/Elevator or Air etc…

Section II :Third Party Legal Liability

Legal Liability cover includes

  • Any permanent injury / death of a person or
  • Any damage caused to the property of a third party (TPPD)
  • Legal liability to paid driver

Section III : Personal Accident Cover

  • Motor insurance provides compulsory Personal Accident cover for individual owner of the vehicle who has valid driving license.
  • PA cover available for Paid Driver, Occupants.

Note: 3 years Liability policy or Bundled policy (First year package and remaining 2years liability policy) has to be taken for New Private cars.

Exclusions on Private car Insurance

Main exclusions in motor policy.

  • Vehicle used for Hire or Reward
  • Vehicle used for Carriage of goods (Apart from samples or personal luggage)
  • Vehicle used for Organized racing
  • Vehicle used for Pace making
  • Vehicle used for Speed testing
  • Vehicle used for Reliability Trials
  • Vehicle used in connection with Motor Trade
  • Vehicles used for driving tuition purpose

Add On Cover to Private car Insurance

Add on covers will be selected on only package policies/Comprehensive policy. This are additional covers on own damage cover. Each company has their own names for the add-on covers. Some are

  • Nil depreciation cover or Bumper to bumper cover or Zero depreciation cover
  • Engine protect cover
  • NCB (No Claim Bonus) protect cover
  • Invoice Protect cover or Return to invoice cover
  • Consumable protect cover
  • Lock and Key protect cover

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