What is an endorsement in Car Insurance?
An endorsement refers to an amendment to your policy that lets you update personal details, coverage or vehicle information, keeping it aligned with your current needs.
Why is car insurance Mandatory in India?
Given how road accidents still are a major issue in India, the Motor Vehicles Act 1988 mandated third-party insurance for all vehicle owners. It aims to promote safe driving, protect the public, and offer financial security to car owners. Driving without it can lead to fines or even imprisonment.
Is comprehensive car insurance mandatory?
No. Only third-party insurance is legally required. However, it’s advisable to opt for a comprehensive policy as it provides wider financial protection by covering damage or loss from theft, accidents, natural disasters, and more.
What is the duration of third-party insurance?
For new cars, third-party insurance lasts for 3 years, after which it must be renewed every year.
Can I buy add-on covers with a third-party Car Insurance plan?
While add-ons are generally available only with standalone own-damage or package policies, IL Smart Assist is an add-on which ICICI Lombard offers as an exception and can be added to a Private Car Liability (third party) Policy
Is it mandatory to file an FIR to make a Car Insurance claim?
Yes, for theft, third-party claims, and major accidents. For minor damages, an FIR is usually not required.
Until when can I renew my Car Insurance policy?
Insurers typically give a grace period of 30–90 days after expiry (30 days at ICICI Lombard). Missing it means your policy lapses, benefits like NCB are lost, and premiums may rise.
What happens to my Car Insurance if I relocate to a new city?
Your policy is valid nationwide; you just need to update your address. However, premiums may change based on location, and you can upgrade coverage if needed.
Will I require Car Insurance for an electric/CNG/LPG car?
Yes, third-party insurance is mandatory for all vehicles, including electric and CNG/LPG. If you install a CNG/LPG kit, it must be endorsed in your RC and insurance policy.
What are the common Car Insurance terms you need to know?
- Surveyor: Assesses damage and estimates claim value.
- Total Loss: Occurs when vehicle is damaged beyond repairs due to severe accident or theft, making the repair cost higher than the IDV
- Break-in Policy: Renewal of policy after it has lapsed
- Salvage : The amount that is assessed which the damaged asset will fetch in the open market. This amount is deducted from the claim amount.
What is the Insurance Regulatory and Development Authority of India (IRDAI)?
Formed in 1999, the Insurance Regulatory and Development Authority of India (IRDAI) regulates and promotes the insurance sector, protects policyholder’s interests, and ensures industry stability.
Why is it important to renew Car Insurance before expiry?
Renewing your Car Insurance policy before expiry ensures you stay legally compliant, avoid penalties under the Motor Vehicles Act, and maintain continuous coverage for your car without any gap in protection.
How does car insurance work?
- Choose a policy: Select a plan and add-ons based on your needs.
- Pay the premium: Choose between the annual payment and monthly instalment options.
- File a claim: Submit the required documents if your car is damaged or lost.
- Claim settlement: The insurer assesses the damage, and if approved, settles the amount at a cashless garage.