Car Insurance in Punjab

The number of registered motor vehicles in Punjab was around 11 million at the end of the fiscal year 2020. Public transport is also extremely well utilised. As the city bustles with activity and high road traffic, the chances of congestion, collisions, vandalism, damages, etc., increase.

The Motor Vehicles Act 1988 mandates every car owner to have a valid car insurance policy in Punjab. Driving a vehicle on Indian roads without a basic insurance policy can lead to fines and penalties.

Getting car insurance can serve as your saviour when it comes to overcoming mishaps like accidents, thefts, fire, explosions, personal injury, etc. It ensures that you don’t burn a hole in your pocket, paying for damages to your vehicle.

There are three types of car insurance policies. You can pick one depending on your vehicle’s specific needs and budget.

Third-Party Car Insurance

Third-party car insurance fulfils the basic legal requirements of the Motor Vehicles Act 1988. It covers financial losses suffered due to damage to third-party property, person, or car.

Benefits of third-party car insurance:

Provides coverage against third-party liabilities

Provides legal assistance while driving on Indian roads

Saves you from traffic fines

Ensures peace of mind

Comprehensive Car Insurance

Comprehensive car insurance protects the insured vehicle against third-party liabilities and own damages due to unforeseen events like accidents, theft, fire, etc.

Benefits of comprehensive car insurance:

Protects against natural disasters

Provides coverage for car damage, third-party liabilities, and losses caused by theft

Offers add-ons to enhance coverage

Cost-effective

Standalone Own Damage Car Insurance

This policy provides coverage for the cost of repairs of your car. It includes the damages caused by collisions, theft, housebreaking, burglary, fire, natural calamities, total loss, etc.

Benefits of standalone own damage car insurance:

Protects your vehicle

Covers against a wide range of damages

Offers add-on benefits for enhanced coverage

Provides a No Claim Bonus

Planning to run a search for ‘car insurance near me’? Consider these differences to make an informed choice:

The car insurance rate is a crucial factor in decision-making when buying motor insurance. If you want to choose the best car insurance in Punjab, you must have an understanding of the factors that affect the premium:

Insured Declared Value (IDV)

This value refers to the car’s current market value after considering depreciation. If your car is damaged beyond repair or stolen, IDV is the maximum amount you are eligible to claim. Car insurance premiums and IDV are directly proportional, which means a higher IDV leads to a higher car insurance premium.

Car’s Age

The car insurance premium is also dependent on the age of the car. The premium is higher for a new car compared to an older one. Your car’s IDV reduces due to depreciation each year, and so does the insurance premium.

Insurance Coverage

The scope of insurance coverage you take affects the insurance premium. If you opt for third-party car insurance, it will cover third-party liabilities only. Since the scope is limited, it will have a lower premium. A comprehensive insurance plan covers you, your car, and third parties and thus entails a higher premium.

Add-ons

When you opt for add-ons to enhance your policy coverage, your car insurance premium will also increase. The additional cover you receive varies for different add-ons. The premium, too, depends on the number and type of add-ons you choose.

Claims History

If a policyholder does not make any claims in a given year, they can enjoy the benefits of NCB in insurance. The amount for NCB continues to increase with each claim-free year. It is a progressive discount on the renewal premium.

Deductible

Deductibles refer to the portion of the claim amount the policyholder pays from their pockets. A higher deductible results in a lower premium since the liability of the insurer is reduced.

Tata AIG offers a wide range of add-on covers that can help you enhance policy coverage. Here’s a description of some of them.

Roadside Assistance

This add-on offers 24/7 breakdown assistance to you and your car if it breaks down at a remote location with no support nearby.

Daily Allowance

With the Daily Allowance add-on, you are compensated for your commute while your car is getting repaired at the garage. You receive the allowance for 10 to 15 days, depending on the cause of the four-wheeler insurance claim.

No Claim Bonus Protection

One of the best add-ons is NCB in insurance. It allows you to file a specific number of claims during the policy year and still avail of the NCB discount.

Zero Depreciation

The zero depreciation add-on ensures that you are reimbursed for the deducted cost of depreciation on your car’s parts.

How to Buy Car Insurance?

Visit the official website of Tata AIG.

Enter your vehicle’s registration number and click on ‘Get Price.’

Fill out the required details as prompted on the screen.

Select the policy coverage. Pick any add-ons you’d like to include in your policy.

On the next screen, you will see a premium quote.

Pay the premium online if it fits your budget.

You will receive a copy of your new car insurance at your registered email address within minutes of successful payment completion.

How to Renew Car Insurance?

Visit Tata AIG’s official website.

Enter the vehicle’s registration number and click on ‘Renew.’

Fill out the details requested and choose from the list of add-ons. Mention about past claims and the date of expiry of the policy.

You will see the premium for car insurance renewal in Punjab.

Pay the premium online, and your policy will be renewed.

Reimbursement Claims

Intimate the insurer about the damages caused to your vehicle.

Get your vehicle repaired from a garage of your choice and keep copies of all the bills.

Fill out the reimbursement claim form and upload the required documents to register a claim.

A surveyor will examine everything to confirm your liability.

You will receive the compensation amount in your bank account once the claim is verified and approved.

Cashless Claims

Inform the insurer about the accident, theft, or damage to the car. You can call the toll-free number or send an email.

Register the claim by filling out a claim form and sending it to the insurer via email or post.

Tata AIG will assign a car inspector or surveyor to assess the damages endured by your car.

Once all information is verified and deemed satisfactory, a visit to one of the network garages will be scheduled.

Visit the selected network garage at the scheduled time to get your car repaired.

After the repairs are completed, the insurer will clear the bills, and you can bring your car back.

You must have the following documents to file a car insurance claim in Punjab.

Duly filled and signed claim form

A copy of the vehicle’s registration certificate (RC)

A copy of the driver’s licence

A copy of the First Information Report (FIR) in case of theft, accident, etc.

A copy of the policy document

The vehicle’s original keys

Form 35 and NOC from the lender if there is an active car loan

Duly signed papers for RTO transfer with Form 28, Form 29, and Form 30

No Trace Report from the police in case of vehicle theft

A cashless network garage has tie-ups with an insurer. It allows the policyholder to get their car repaired without paying the repair costs because the insurer settles the bills after the repairs are completed.

Tata AIG has a network of over 7,500 garages across India, offering cashless services. You can search for the nearest garage by entering your city’s name and car’s make on the insurer’s official website. However, please note cashless benefits are available on comprehensive car insurance plans only.

The feature is also limited to selected cities. You can consult with the Tata AIG customer support team regarding cashless network garages.