INTRODUCTION

INSURANCE
Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange
for payment. It is a form of risk management primarily used to hedge against the risk of a
contingent, uncertain loss.
An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder,
is the person or entity buying the insurance policy. The amount to be charged for a certain
amount of insurance coverage is called the premium. Risk management, the practice of
appraising and controlling risk, has evolved as a discrete field of study and practice.
The transaction involves the insured assuming a guaranteed and known relatively small loss in
the form of payment to the insurer in exchange for the insurer's promise to compensate
(indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract,
called the insurance policy, which details the conditions and circumstances under which the
insured will be financially compensated.
Principles
Insurance involves pooling funds from many insured entities (known as exposures) to pay for the
losses that some may incur. The insured entities are therefore protected from risk for a fee, with
the fee being dependent upon the frequency and severity of the event occurring. In order to be
insurable, the risk insured against must meet certain characteristics in order to be an insurable
risk. Insurance is a commercial enterprise and a major part of the financial services industry, but
individual entities can also self-insure through saving money for possible future losses.
Insurability
Risks which can be insured by private companies typically share seven common characteristics:
Large number of similar exposure units: Since insurance operates through pooling resources,
the majority of insurance policies are provided for individual members of large classes, allowing
insurers to benefit from the law of large numbers in which predicted losses are similar to the
actual losses. Exceptions include Lloyd's of London, which is famous for insuring the life or
health of actors, sports figures and other famous individuals. However, all exposures will have
particular differences, which may lead to different premium rates.
1. Definite loss: The loss takes place at a known time, in a known place, and from a known
cause. The classic example is death of an insured person on a life insurance policy. Fire,
automobile accidents, and worker injuries may all easily meet this criterion. Other types
of losses may only be definite in theory. Occupational disease, for instance, may involve
prolonged exposure to injurious conditions where no specific time, place or cause is
identifiable. Ideally, the time, place and cause of a loss should be clear enough that a
reasonable person, with sufficient information, could objectively verify all three
elements.
2. Accidental loss: The event that constitutes the trigger of a claim should be fortuitous, or
at least outside the control of the beneficiary of the insurance. The loss should be pure, in
the sense that it results from an event for which there is only the opportunity for cost.
Events that contain speculative elements, such as ordinary business risks or even
purchasing a lottery ticket, are generally not considered insurable.
3. Large loss: The size of the loss must be meaningful from the perspective of the insured.
Insurance premiums need to cover both the expected cost of losses, plus the cost of
issuing and administering the policy, adjusting losses, and supplying the capital needed to
reasonably assure that the insurer will be able to pay claims. For small losses, these latter
costs may be several times the size of the expected cost of losses. There is hardly any
point in paying such costs unless the protection offered has real value to a buyer.
4. Affordable premium: If the likelihood of an insured event is so high, or the cost of the
event so large, that the resulting premium is large relative to the amount of protection
offered, then it is not likely that the insurance will be purchased, even if on offer.
Furthermore, as the accounting profession formally recognizes in financial accounting
 standards, the premium cannot be so large that there is not a reasonable chance of a
significant loss to the insurer. If there is no such chance of loss, then the transaction may
have the form of insurance, but not the substance.
5. Calculable loss: There are two elements that must be at least estimable, if not formally
calculable: the probability of loss, and the attendant cost. Probability of loss is generally
an empirical exercise, while cost has more to do with the ability of a reasonable person in
possession of a copy of the insurance policy and a proof of loss associated with a claim
presented under that policy to make a reasonably definite and objective evaluation of the
amount of the loss recoverable as a result of the claim.
Insurance companies
Insurance companies may be classified into two groups:
 Life insurance companies, which sell life insurance, annuities and pensions products.
 Non-life, general, or property/casualty insurance companies, which sell other types of
insurance.
General insurance companies can be further divided into these sub categories.
 Standard lines
 Excess lines
In most countries, life and non-life insurers are subject to different regulatory regimes and
different tax and accounting rules. The main reason for the distinction between the two types of
company is that life, annuity, and pension business is very long-term in nature — coverage for
life assurance or a pension can cover risks over many decades. By contrast, non-life insurance
cover usually covers a shorter period, such as one year.
In the United States, standard line insurance companies are insurers that have received a license
or authorization from a state for the purpose of writing specific kinds of insurance in that state,
such as automobile insurance or homeowners' insurance. They are typically referred to as
"admitted" insurers. Generally, such an insurance company must submit its rates and policy
forms to the state's insurance regulator to receive his or her prior approval, although whether an
insurance company must receive prior approval depends upon the kind of insurance being
written. Standard line insurance companies usually charge lower premiums than excess line
insurers and may sell directly to individual insureds. They are regulated by state laws, which
include restrictions on rates and forms, and which aim to protect consumers and the public from
unfair or abusive practices. These insurers also are required to contribute to state guarantee
funds, which are used to pay for losses if an insurer becomes insolvent.
Excess line insurance companies (also known as Excess and Surplus) typically insure risks not
covered by the standard lines insurance market, due to a variety of reasons (e.g., new entity or an
entity that does not have an adequate loss history, an entity with unique risk characteristics, or an
entity that has a loss history that does not fit the underwriting requirements of the standard lines
insurance market). They are typically referred to as non-admitted or unlicensed insurers. Non-
admitted insurers are generally not licensed or authorized in the states in which they write
business, although they must be licensed or authorized in the state in which they are domiciled.
These companies have more flexibility and can react faster than standard line insurance
companies because they are not required to file rates and forms. However, they still have
substantial regulatory requirements placed upon them.
Most states require that excess line insurers submit financial information, articles of
incorporation, a list of officers, and other general information. They also may not write insurance
that is typically available in the admitted market, do not participate in state guarantee funds (and
therefore policyholders do not have any recourse through these funds if an insurer becomes
insolvent and cannot pay claims), may pay higher taxes, only may write coverage for a risk if it
has been rejected by three different admitted insurers, and only when the insurance producer
placing the business has a surplus lines license. Generally, when an excess line insurer writes a
policy, it must, pursuant to state laws, provide disclosure to the policyholder that the
policyholder's policy is being written by an excess line insurer.
On July 21, 2010, President Barack Obama signed into law the Nonadmitted and Reinsurance
Reform Act of 2010 ("NRRA"), which took effect on July 21, 2011 and was part of the Dodd-
Frank Wall Street Reform and Consumer Protection Act. The NRRA changed the regulatory
paradigm for excess line insurance. Generally, under the NRRA, only the insured's home state
may regulate and tax the excess line transaction.
Insurance companies are generally classified as either mutual or proprietary companies. Mutual
companies are owned by the policyholders, while shareholders (who may or may not own
policies) own proprietary insurance companies.
Demutualization of mutual insurers to form stock companies, as well as the formation of a hybrid
known as a mutual holding company, became common in some countries, such as the United
States, in the late 20th century. However, not all states permit mutual holding companies.
Other possible forms for an insurance company include reciprocals, in which policyholders
reciprocate in sharing risks, and Lloyd's organizations.
Insurance companies are rated by various agencies such as A. M. Best. The ratings include the
company's financial strength, which measures its ability to pay claims. It also rates financial
instruments issued by the insurance company, such as bonds, notes, and securitization products.
Reinsurance companies are insurance companies that sell policies to other insurance companies,
allowing them to reduce their risks and protect themselves from very large losses. The
reinsurance market is dominated by a few very large companies, with huge reserves. A reinsurer
may also be a direct writer of insurance risks as well.
Captive insurance companies may be defined as limited-purpose insurance companies
established with the specific objective of financing risks emanating from their parent group or
groups. This definition can sometimes be extended to include some of the risks of the parent
company's customers. In short, it is an in-house self-insurance vehicle. Captives may take the
form of a "pure" entity (which is a 100% subsidiary of the self-insured parent company); of a
"mutual" captive (which insures the collective risks of members of an industry); and of an
"association" captive (which self-insures individual risks of the members of a professional,
commercial or industrial association). Captives represent commercial, economic and tax
advantages to their sponsors because of the reductions in costs they help create and for the ease
of insurance risk management and the flexibility for cash flows they generate. Additionally, they
may provide coverage of risks which is neither available nor offered in the traditional insurance
market at reasonable prices.
The types of risk that a captive can underwrite for their parents include property damage, public
and product liability, professional indemnity, employee benefits, employers' liability, motor and
medical aid expenses. The captive's exposure to such risks may be limited by the use of
reinsurance.
Captives are becoming an increasingly important component of the risk management and risk
financing strategy of their parent. This can be understood against the following background:
 heavy and increasing premium costs in almost every line of coverage;
 difficulties in insuring certain types of fortuitous risk;
 differential coverage standards in various parts of the world;
 rating structures which reflect market trends rather than individual loss experience;
 insufficient credit for deductibles and/or loss control efforts.
There are also companies known as 'insurance consultants'. Like a mortgage broker, these
companies are paid a fee by the customer to shop around for the best insurance policy amongst
many companies. Similar to an insurance consultant, an 'insurance broker' also shops around for
the best insurance policy amongst many companies. However, with insurance brokers, the fee is
usually paid in the form of commission from the insurer that is selected rather than directly from
the client.
Neither insurance consultants nor insurance brokers are insurance companies and no risks are
transferred to them in insurance transactions. Third party administrators are companies that
perform underwriting and sometimes claims handling services for insurance companies. These
companies often have special expertise that the insurance companies do not have.
The financial stability and strength of an insurance company should be a major consideration
when buying an insurance contract. An insurance premium paid currently provides coverage for
losses that might arise many years in the future. For that reason, the viability of the insurance
carrier is very important. In recent years, a number of insurance companies have become
insolvent, leaving their policyholders with no coverage (or coverage only from a government-
backed insurance pool or other arrangement with less attractive payouts for losses). A number of
independent rating agencies provide information and rate the financial viability of insurance
companies.
 VEHICLE INSURANCE
Overview
Vehicle insurance (also known as auto insurance, GAP insurance, car insurance, or motor
insurance) is insurance purchased for cars, trucks, motorcycles, and other road vehicles. Its
primary use is to provide financial protection against physical damage and/or bodily injury
resulting from traffic collisions and against liability that could also arise there from. The specific
terms of vehicle insurance vary with legal regulations in each region. To a lesser degree vehicle
insurance may additionally offer financial protection against theft of the vehicle and possibly
damage to the vehicle, sustained from things other than traffic collisions.

Vehicle Insurance in India

Auto Insurance in India deals with the insurance covers for the loss or damage caused to the
automobile or its parts due to natural and man-made calamities. It provides accident cover for
individual owners of the vehicle while driving and also for passengers and third party legal
liability. There are certain general insurance companies who also offer online insurance service
for the vehicle.
Auto Insurance in India is a compulsory requirement for all new vehicles used whether for
commercial or personal use. The insurance companies have tie-ups with leading automobile
manufacturers. They offer their customers instant auto quotes. Auto premium is determined by a
number of factors and the amount of premium increases with the rise in the price of the vehicle.
The claims of the Auto Insurance in India can be accidental, theft claims or third party claims.
Certain documents are required for claiming Auto Insurance in India, like duly signed claim
form, RC copy of the vehicle, Driving license copy, FIR copy, Original estimate and policy
copy.
There are different types of Auto Insurance in India:
Private Car Insurance – In the Auto Insurance in India, Private Car Insurance is the fastest
growing sector as it is compulsory for all the new cars. The amount of premium depends on the
make and value of the car, state where the car is registered and the year of manufacture.
Two Wheeler Insurance – The Two Wheeler Insurance under the Auto Insurance in India covers
accidental insurance for the drivers of the vehicle. The amount of premium depends on the
current showroom price multiplied by the depreciation rate fixed by the Tariff Advisory
Committee at the time of the beginning of policy period.
Commercial Vehicle Insurance – Commercial Vehicle Insurance under the Auto Insurance in
India provides cover for all the vehicles which are not used for personal purposes, like the
Trucks and HMVs. The amount of premium depends on the showroom price of the vehicle at the
commencement of the insurance period, make of the vehicle and the place of registration of the
vehicle. The auto insurance generally includes:
 Loss or damage by accident, fire, lightning, self ignition, external explosion, burglary,
housebreaking or theft, malicious act.
 Liability for third party injury/death, third party property and liability to paid driver
 On payment of appropriate additional premium, loss/damage to electrical/electronic
accessories
The auto insurance does not include:
 Consequential loss, depreciation, mechanical and electrical breakdown, failure or
breakage
 When vehicle is used outside the geographical area
 War or nuclear perils and drunken driving
Sensible use of Vehicle Insurance
Sensible use of vehicle insurance includes filing claims for large repairs when there is an
accident. For smaller things, like a small dent in a door from a careless driver at the mall parking
lot, it will be best if you just let it go. This is a costly repair, mostly cosmetic, that does not affect
the safety or driving ability of the vehicle. A less costly repair such as a broken windshield
should be done because it does affect the safety of the vehicle. That is the criteria. How much
will the repair correct a safety or operational factor or the vehicle? The second thing to consider
is, if you can fix it on your own for less than the deductible then do not file a claim. Take the
long view here. You will probably drive for 50 years, owning one or more vehicles at a time all
during those years. A little common sense here could save you a small fortune.
The premium charged semi-annually for vehicle insurance ranges from $300 to $1200 depending
on several factors, like driving history. This is a considerable amount of money to most people.
The thinking here is to file a claim for every incident, no matter how minor, if the amount to be
paid exceeds the deductible. What can happen is that 2 or 3 small claims are filed that seem to
get back part or most of the premium paid and then there is a large claim for a serious accident.
Insurance companies continually look at their own financial risk. If it appears that the vehicle
and driver insured by them is going to cost more than they are willing to risk, they can simply
cancel the policy. One of the questions most insurance companies ask when deciding to insure a
new customer is if their insurance has ever been cancelled. Many times they will refuse to insure
the vehicle without asking the circumstances of the previous cancellation if any.
If the insurance company has decided to renew the policy for another six months, the premium
may well be doubled. The insured may also find the deductible increased and coverage
decreased. These factors are all legally available to the insurance company if they believe the
insurance is being abused. In effect, the driver is on a kind of probation.
So what good is the insurance? First, consider that if you have a serious accident where damages
amount to half the value of the vehicle, having insurance is a wonderful thing. With vehicles
costing anywhere from $10,000 to $30,000 on average for a middle of the road car, repairs could
equal the cost of the insurance premium for 5 to 10 years. If you have been sensible in your use
of the insurance, the premium will probably not increase.
Second, having insurance on the vehicle is required by law and you do not want to break this
law. The penalties for doing so are huge, including fines and possibly jail time.
Commercial Vehicle Insurance
Any damage to it can be a huge loss to you. In today’s times of uncertainties, you need a
comprehensive insurance cover which not only covers you for the liability arising out of the
Third party but covers you against the loss or damage to your vehicle.
Benefits
 Covers all the features as per the Motor Vehicle tariff
 Coverage for Partial Loss & total loss arising out of accident, Fire & allied perils,
burglary & theft, riots and strikes, damage in transit by air, rail, road and sea.
 Discount (NCB) for claim free experience.
 Predefined depreciation for the parts needing replacement on account of accident.
 Third Party Legal Liability: Covers Third party property damage and Third party Bodily
injury.

Motor Vehicle Insurance

Under it, a personal or commercial vehicle is subjected to combined insurance against the risks
of:-
(i) Loss or damage to the motor vehicle and its accessories on account of accident or theft;
(ii) Death of or injury to the owner or passenger of the vehicle due to accident;
(iii)Damages payable to third parties by the owner of the vehicle for accident.
(iv) A comprehensive insurance policy may be taken to cover all these risks.
Insurance against the first two types of risks is optional. But every owner of motor vehicle is
required to take out an insurance policy to cover the third party risks under the Motor Vehicles
Act, 1956. Such a policy is known as 'third party insurance or liability insurance'.
Under such a policy, the third party who has suffered any loss can sue the insurer directly even
though he was not a party to the contract of insurance. For example, motor insurance by United
India Insurance Company Limited. This policy provides insurance cover to owners of the
vehicle, financiers or lessee, who have insurable interest in a motor vehicle.
Type of Car Insurance
When purchasing vehicle insurance, there are several choices. Some of the choices will depend
on facts outside of the control of the driver. One of these facts concerns the age of the driver.
Some insurance providers refuse to insure a vehicle if it will be driven by anyone under a certain
age, or over a certain age. Another factor is the number of accidents or traffic citations within the
last five years.
Insurance companies try to limit their risk of paying a claim by only insuring those over 25 and
under 65 who have none or very little reason to file a claim. That is, no accidents of any kind, or
only a small claim for windshield replacement, for example. For a higher fee, some insurance
companies will insure older drivers or those with less than stellar driving records.
In most cases, if a vehicle has a lien (loan) against it, the driver will be compelled to purchase
full coverage auto insurance. Full coverage consists of collision, health, liability, comprehensive
(glass, fire, etc) and uninsured motorist coverage. It may also include road service. A minimum
deductible, the dollar amount the driver would have to pay out of pocket for each claim, is set by
the insurance company. The driver may have the choice of raising this amount which usually
means that the premium will be a bit lower.
• Collision pays for damages to the vehicle in the event of an accident.
• Health pays for medical treatment for the driver and passengers if injured in an
accident while in the insured vehicle.
• Liability pays for damages to property, such as a utility pole, mailbox, etc.
• Comprehensive coverage pays for broken windshields, electrical fires, etc. to the insured
vehicle.
• Uninsured motorist coverage will pay for damage to the insured vehicle in the event of an
accident involving another vehicle that is not insured.
• Road service pays for tow truck assistance in the event of a breakdown.
If the vehicle is owned outright, the driver has the choice of providing insurance coverage that
will include liability and medical up to the limits set by law, and nothing more. The insurance
company will still set a deductible, which can be raised. For just a few dollars, the driver can add
in uninsured motorist coverage. A wise choice, usually, that provides protection if the other
drivers involved in an accident have no or too little coverage themselves. This is minimal
coverage and is usually chosen when the vehicle is worth little.
Many vehicle owners decide it is worth the higher premium to have full coverage, even though
there is no loan. They may also include coverage for a rental car if they find themselves without
a vehicle due to an accident, until repairs are completed. This is referred to a loss of use
coverage. This is valuable when the insured vehicle is fairly new or is the only transportation to
get to work.
Types of Motor Insurance Solutions:
 Private Car Insurance
 Two Wheeler Insurance
 Commercial Vehicle Insurance
Benefits
 Instant policy issuance
 Toll-free assistance number for customer service and claims registration
 Prompt and timely claims survey
 Cashless / direct settlement at our approved workshops
 Claims finalisation within seven working days from receipt of all documents
 Accidental towing assistance (within city limits only)
 Automated renewal reminder service
Coverage’s
 Vehicle damage: This benefit covers any damage to your vehicle on account of an
accident, burglary, theft or housebreaking. It also protects your vehicle against damage
due to fire, lightning, self-ignition, explosion, riot, strike, malicious act, terrorism,
earthquake, flood, cyclone and inundation. This cover encompasses protection against
any damage caused to your vehicle while in transit by road, rail, air, elevator and lift

 Third party liability: This benefit protects you against any third party liability that you
may incur due to the death of, or bodily injury to, any person; or damage to property. The
policy also covers the legal expenses you might incur to defend this claim. This is a
mandatory insurance coverage for your vehicle
Additional coverage’s
1. Personal accident cover:
The motor insurance provides compulsory personal accident cover of Rs. 1 lakh for
individual owners of the vehicle while driving. This is not applicable for a Company
owned Vehicle.
You can also opt for a personal accident cover for passengers (named or un-named) up to
a maximum Capital Sum Insured of Rs. 2 lacs per person
o Available only if the owner of the vehicle holds a valid driving license.
 2. Additional Legal liabilities:
The following additional legal liabilities may also be opted for at an additional premium
o Paid Driver/conductor/Cleaner employed in operation of vehicle.
o Employees traveling in/driving the vehicle other than paid driver.
o Non-fare paying passengers

Bonus and Discounts:

 No Claim Bonus: If we do not make a claim during the policy period, a No Claim Bonus
(NCB) is offered on renewals. This discount can go as high as 50%. (NCB will only be
allowed provided the policy is renewed within 90 days of the expiry date of the previous
policy.)
 Transfer of NCB: We can transfer full benefits of No Claim Bonus when you shift your
motor insurance policy to another company.
 Voluntary Excess discount: A further discount on the premium is available if we opt for
a Voluntary Excess (available only for Private cars and two wheelers) in addition to the
Compulsory Excess. (Compulsory Excess is the amount of loss which the insured has to
bear in each and every claim.).
 Automobile Association Membership: We can also avail of additional discount if you
are a member of a recognized Automobile Association in India (available only for Private
cars and two wheelers).
 Anti-theft devices: In case we have installed an ARAI approved anti theft device in our
vehicle, we get a discount of 2.5 % on the OD Premium to a maximum of Rs. 500 for
four-wheelers and Rs 50/- for two wheelers
Motor Add on
With growing needs and dynamic external factors, the regular car insurance is no longer
sufficient. Future Generali offers you unique Add on covers for additional protection to your
vehicles
1. Zero Depreciation
This cover offers full claim without any deduction for depreciation on the value of parts
replaced. The cover is available for vehicles up to 3 years old and operates for maximum
2 claims during the policy period.
2. Reimbursement of Consumables
This cover reimburses the cost of consumables up to 2% of the admissible claim amount
subject to a maximum of Rs 3000/-
3. Return to Invoice
This cover pays the difference between the ‘claim amount receivable’ under the policy
and the ‘purchase price of vehicle’ as per invoice in case the vehicle is declared a Total
Loss or a Constructive Total Loss
4. NCB Protection
Normally in case of a claim, the ‘No Claim Bonus (NCB)’ component of your car
insurance policy gets impacted. However under this cover, the existing NCB can be
retained at the time of renewal
5. Loss of Keys
Under this cover you will be reimbursed with the cost incurred by you towards replacing
Car keys, locks and locksmith charges following theft or loss of your vehicle keys
6. Loss of Personal Belongings
This cover offers protection to your valuable personal belongings that are burgled or
stolen from your locked vehicle including laptop and/ or mobile.
7. Tyre Damage
This cover provides reimbursement for the cost of tyre including the air valve due to
bulge, puncture, bursting, cut or damage arising out of an accident
8. Inconvenience Allowance
This allowance pays on per day basis for the period when the vehicle is undergoing
accidental repairs in the garage as allowed by the surveyors. Allowance of Rs 3000/- per
 day is payable. Maximum period for which the allowance can be paid is 15 days with a
time excess of 3 days
9. Additional PA for Owner/ Driver
This cover compensates over and above the standard cover for death sustained by owner/
driver
Compare Vehicle Insurance
Vehicle insurances are mandatory therefore it is wise that you choose the right kind of insurance
that works best for you and gives you maximum benefit. You have to set aside some time to
really compare insurance rates and coverage before you commit to a company. Some things that
you need to look for are:
 How much do they charge for the policy and how does it compare with online companies
and land based agencies
 What is the minimum and maximum premium available
 Is there a monthly payment plan that will help smooth out the budget
 How much does the premium go up at each renewal (sometimes it goes down with a safe
driving record)
 How often do they renew the policy (6 months., 12 months)
 What is the deductible on the policy (each state has a legal minimum required)
 What are the premium savings if the deductible is raised above the legal minimum
 What are the premium savings if life, homeowners and auto insurance are purchased from
the same company (sometimes RV and boat can be also added)
 How do they handle claims (phone, in person, get your own repair estimates, etc)
 Do they use independent claims adjusters (usually more objective)
 How long have they been in business
 Are there outstanding complaints against the company (check with BBB)
 What are their guidelines for insuring a vehicle (age, mileage, value)
 Do they insure under age drivers and how much does that raise the premium
 Do they carry insurance for those with a poor driving record (if so, they may charge a
higher premium for it, or for all policies to cover anticipated expenses)
In addition to having answers to the above, it would be wise to have some answers to questions
of the legal requirements for insurance in the state of residence. This information is usually
available online, or by telephone directly from the state offices. Do not depend on the insurance
company to educate, although they may be willing to do so. Compare the information from the
state office with the information supplied by the insurance company.
There are several different options available to the vehicle owner when looking for insurance.
Compare rates and coverage sold by online companies, independent agencies that represent
several companies, single insurance companies such as Auto Owners, insurances sold through
organizations such as AARP(American Association of Retired Persons), loan companies such as
GMAC(General Motors Acceptance Corp), banks and credit unions. Using the guidelines above
the vehicle owner can determine which insurance is the best fit for their current life situation. It
seems like a lot of work to go to, but protecting the finances of the household is of primary
importance. Taking time up front to learn and compare can pay big dividends later.
Terms of Vehicle Insurance
Vehicle can be a term for a car, automobile, truck, motorcycle or any other motorized
conveyance used to transport people or products.
Coverage for your vehicle refers to the amount and types of insurance you have purchased in
accordance with the law, to legally protect yourself and others.
Term refers to the length of time the insurance policy will be in force. It can be as little as one
month, but is usually for six months to one year.
Premium is the amount of money paid to the insurance company to obtain vehicle insurance.
The amount charged by the insurance company will be determined by the coverage required,
owner’s driving record, the deductible agreed upon, and laws of the state.
Basic coverage or PL and PD (Public Liability and Property Damage) means the insurance will
pay for damages to vehicles owned by others, or to their property, but will not pay for damages
to your vehicle or property. Included in the PL/PD policy is a limited medical coverage in case of
injury, as required by law. In many cases, this is $20,000 for one instance, up to $100,000 for
injuries to several people involved in a single accident. This is an example of a minimum
coverage policy.
Comprehensive Collision coverage is an insurance policy intended to protect your vehicle in
addition to those owned by others, in case of accident. The increased coverage will pay for
repairs in full, minus the deductibles. Included in the policy will be repairs for glass breakage,
fires and other unforeseen accidents. Procuring a comprehensive policy is normally required by
loan companies before they agree to finance the vehicle. In a policy of this type, the amount it
will pay for medical care expenses are also higher.
Deductible refers to an amount of money you agree to pay out of your own pocket for any
repairs required in the event of an accident. Usually the amount is agreed to in advance. When a
deductible is arranged between insurance company and individual insured, there is usually a
reduction in the cost of the insurance policy. Each time there is need for a repair, the deductible
will have to be paid.
Write Off is a term used when the vehicle would cost more to repair than it is worth. If there is a
loan on the vehicle, that would be paid out first, minus the deductible. If there is anything left, it
would go to the owner of the vehicle to use as they see fit.
Uninsured Motorist coverage means that if a vehicle does not have insurance and is in an
accident with another vehicle, the repairs will be covered to the other vehicle. (The injured party
in this case.) Prior to having uninsured motorist coverage, any vehicle involved in an accident
with an uninsured party would have no coverage. Any repairs needed would have to be paid for
out of pocket even though the injured party had insurance, because the accident was not his fault
What Is Full Cover Auto Insurance?

Full coverage auto insurance is automobile insurance which covers not only damage caused by
the carrier's vehicle, but damage to the carrier's vehicle. States that require auto insurance
typically require only liability insurance--that is, a policy which will cover the damage the
policyholder causes to another car or person. If the person who caused the accident carries only
liability insurance, his or her car will not be covered. Full insurance covers the policyholder's car
as well.

Coverage levels
Vehicle insurance can cover some or all of the following items:
 The insured party (medical payments)
 The insured vehicle (physical damage)
 Third parties (car and people, property damage and bodily injury)
 Third party, fire and theft
 In some jurisdictions coverage for injuries to persons riding in the insured vehicle is
available without regard to fault in the auto accident (No Fault Auto Insurance)
 The cost to rent a vehicle if yours is damaged.
 The cost to tow your vehicle to a repair facility.
Different policies specify the circumstances under which each item is covered. For example, a
vehicle can be insured against theft, fire damage, or accident damage independently.
Keep these Thing kept ready before intimating loss
 Complete policy number
 Insured Name and contact number
 Name of the driver driving the vehicle at the time of accident
 Place of accident
 Vehicle registration number
 Vehicle type & model
 Brief description of accident
 Date and time of accident
 Current location of the vehicle
Do’ and Do Not
 Shift the vehicle safely to the side of the road to avoid further damage or and intimate
Future General Contact Centre for further advice.
 Surveyor will inspect the vehicle at workshop. It is advisable to be present in workshop
during surveyor's visit.
 Provide requisite document to surveyor as mentioned above. Please furnish original
documents for verification wherever required.
 In case where vehicle is being repaired at Future General Convenient Workshops the
payment will be made directly to the workshop and insured has to bear the difference
amount as per policy conditions.
 Information about the approved claim amount and deductions on account of
depreciation/excess if any will be made available to the garage before delivery of the
vehicle. Insured may ask for the same from repairer.
 For all workshops except Future General Convenient Workshops, you are required to
settle the bill with workshop and submit bills along with receipt to the Future General for
claim settlement as per surveyor report.
 Submit bill to the surveyor or Future General Office for claim settlement as per surveyor
report.
 Claim settlement will take approximately 7 days from the date of submission of final
document(s), provided all document(s) are in order.
Do Not
 Make any compromise with any third party in case of an accident involving third party.
 Leave the vehicle unattended at the spot.
 Proceed with accident repairs before the vehicle has been inspected by the surveyor.
DOCUMENTS TO BE HAND OVER TO SURVEYOR / GARAGE
OWN DAMAGE CLAIMS – PRIVATE VEHICLE & TWO WHEELER
 Claim Intimation
 Policy Copy
 Claim form
 Copy of RC book
 Copy of Driving License
 Estimate
 Photos
 Survey Report
 Survey Fees Bills
 Supplementary Report / Re-inspection report
 Final repair invoice and receipt / Satisfaction voucher for cashless payment
OWN DAMAGE CLAIMS – COMMERCIAL VEHICLE
In addition to the document listed in section “Own Damage – Private Vehicle & Two Wheeler”
following documents need to be collected.
 Fitness Certificate
 Permit
 Claim form
 Copy of FIR
 Load Challan
THEFT CLAIMS
 Claim Intimation
 Original Policy
 Claim form
 Original Registration certificate
 FIR
 Original set of keys
 Original Sales invoice & Tax receipt
 Intimation to RTO (to inform RTO that the vehicle is stolen and not to transfer)
 Final Report
 Transfer papers
 Indemnity Bond
 Subrogation letter
Some Best Policies of Vehicle insurance
Aviva Vehicle Insurance
When it comes to getting the best car insurance, we understand that finding the right car cover at
the right price is what matters. Our Defaqto 5 Star Rating provides you with independent expert
reassurance about the quality of cover we provide as standard, as well as options to tailor your
cover. 10% of customers buying comprehensive car insurance from us from 1 May 2012 – 31
October 2012 paid £198 or less. The premium you pay will depend upon individual
circumstances, cover chosen and payment method selected.
We also know that with the best car insurance, it's the small details that make all the difference.
That's why our advisers don’t have call length targets and are rewarded for customer satisfaction,
not sales. So when you talk to our experts, you know you won't be sold things you don't need.
Take a look at what else you get with our car cover:
 Uninsured driver promise - If you're hit by an uninsured driver and it wasn't your fault,
your no claim discount won't be lost and we'll refund any excess you've had to pay.**
 24/7 UK claims helpline - If your car is not safe to drive, we’ll arrange to get you to your
destination, and deliver your car to a repairer. Available on comprehensive cover in the
UK and Channel Islands only.
 Lifetime repair guarantee while you remain a customer - We guarantee the quality of
repairs made by our approved repairers, following a claim, for the greater of 3 years or as
long as you insure your car or van with us.***
 Up to 1/3 off with Aviva MultiCar when you add a second car or van - We expect
20% of customers to achieve the maximum 1/3 saving.^
 Winner of the Institute of Customer Service Quality Monitoring Customer Focus
Award - Large Enterprise 2012.
Temporary car insurance
Aviva's fully comprehensive short term car insurance, backed by Day insure, is a cost effective
way of insuring yourself to drive another car or van, or someone else to drive your vehicle, for a
period of between 1 and 28 days. Choose the temporary motor insurance cover you need – from
1 to 28 days
 Quick and easy to arrange
 Aviva short term car insurance won't affect the no claim discount on the vehicle's main
insurance policy
 Temporary car insurance cover for full business use available (except for hire and
reward)
 Uninsured loss recovery included with every temporary motor insurance policy
 A range of additional options available including:
o Comprehensive cover for driving in Europe
o Temporary breakdown cover
Bajaaj Allianz Vehicle insurance

Car insurance or two-wheeler insurance by Bajaj Allianz provides unmatched care and protection
for your motoring experience.

Whether it is cashless settlement in preferred workshops or 24x7 claims support, our

insurance plan for your car and two-wheeler has been designed with hassle-free claim settlement
experience in mind.

Key Benefits

 Instant online policy issuance and renewal in easy steps.

 Cashless claims at over 1500 preferred garages. 75% on account payment when cashless
facility is not available.
 To locate a Bajaj Allianz's Preferred Garage nearest to you call us at: 1800-233-3355
(Toll Free).
 Transfer your existing No Claim Bonus from any insurance provider ranging from 20% -
50%.
 0% interest EMI option available on payment through Citibank Credit Card.
 Instant claims assistance and SMS updates on your motor claim status through our 24x7
call-centers.
 Towing facility in an event of a breakdown/accident 24x7 service by phone or online-
even on holidays.
 Bajaj Allianz' preferred workshops give you access to hassle-free inspection, high service
standards and cashless settlement of claims in event of an accident/breakdown.

Cover Includes for

 Loss or Damage to your car and two-wheeler against Natural Calamities

Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm,
tempest, inundation, cyclone, hailstorm, frost, landslide and rockslide.

 Loss or Damage to your car and two-wheeler against Man-made Calamities

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.

 Personal Accident Cover

Coverage of Rs.1 Lakh for the individual owner/driver of the vehicle while driving or
travelling, mounting or dismounting from the two wheeler. Optional personal accident
covers for co-passengers available.

 Third Party Legal Liability

Protection against legal liability due to accidental damages resulting in the permanent
injury or death of a person, and damage caused to the surrounding property.
Cover not included for

 Normal wear and tear and general ageing of the vehicle

 Depreciation or any consequential loss
 Mechanical/ electrical breakdown
 Wear and tear of consumables like tyres and tubes unless the vehicle is damaged at the same
time, in which case the liability of the company shall be limited to 50% of the cost of
replacement
 Vehicles being used otherwise than in accordance with limitations as to use
 Damage to/ by a person driving any vehicles without a valid licens
 Damage to/ by a person driving the vehicle under the influence of drugs or liquor. Loss/
damage due to war, mutiny or nuclear risk
 Conclusion
Vehicle Insurance, it plays vital role in transportation industry and it helps for Indian economy
too. It is compulsory to have a valid auto insurance policy before we can bring our vehicle on the
road.

Third party insurance is compulsory according to law, but a complete auto insurance policy is
necessary for private vehicles, car insurance, bike insurance, auto insurance, and heavy vehicle
insurance etc. Insurance can be done directly from its office or via its relevant agency offices
across India.

Without insurance is like vehicle is dead and it has no full mean of its life than parts. Another
one is, Vehicle insurance can claim upon its valid duration on its incident within happen only.