According to the MV (Motor vehicle) act 1988, you can't drive your car without third party insurance. But when you decide to insure your car you generally got confused because of many car insurance types like third party, first party, second party you got confused that what is mandatory or what types of policy should I buy. And also there are many insurance companies in the market. So you got confused that which are the best car insurance companies for you. When you go to the agents and ask them to suggest they will try to sell you the expensive policies and sometimes they will convince you for that covers also which you never need. So in this article we are going to discuss about;
- Car insurance types
- Best car insurance companies 2020
- Factors you should consider while buying an insurance policy
Car insurance types
1. Third party insurance / liability
People usually call it third party insurance but there are some more covers that we will get in the third party insurance. This insurance policy is also called as liability insurance policy.
According to the MV act 1988 you cannot drive your car on road without third party insurance. Government had made it compulsary for all types of vehicles whether it is commercial vehicle, private vehicle or two wheelers.
Who will be covered in third party insurance
In this car insurance type Car, car owner and also the passengers sitting in the car will not cover in the third party. If someone has got accident from your car then he will called as third party and he will be covered in this policy. Also when you destroys someone's property that property also covered in the third party insurance. The maximum amount which property owner can claim from insurance company is upto 7.5 lakhs. And if someone got accident from your vehicle and he got died or disable in that case MACT (Motor act claim tribunal) will decide the amount which he or his family should get.
Pa cover for owner driver
As the name is showing the owner driver cover. According to IRDAI (Insurance Regulatory Development Authority of India). Owner of the car who have valid driving license have to get the personel accidental cover of atleast 15 lakhs. When you buy a third party insurance it is also included in that policy. But there are some exceptions also in which you don't have to buy this cover. The amount charged for this cover is different in different companies.
Paid driver cover
Paid driver cover is also a part of liability and you will get this cover included in third party insurance in private cars. Car owner is not covered in this Cover but the driver which the owner have occupied will cover in this. The maximum amount which the family of paid driver can claim from insurance company is 1 lakhs.
Passenger cover
There are 5 or 7 more seats in the private cars. So this cover is for those seat passengers. Those passenger will be covered in this in the case of accidental death or disability. The maximum sum insured is depend upon the premium which you have paid in the policy. Company charges Rs. 50 per seat as per 1 lakhs.
Cng kit
According to the IRDAI guidlines, you have to pay 60 rs as liability if a CNG kit is fitted in your car doesn't matter it is showroom fitted or outfitted.
2. Comprehensive package policy
Almost every car owner wants to buy this policy instead of buying only third party insurance policy and who doesn't want to secure his car from accidents. It is also called first party isurance policy. Your car will also be covered along with you in this policy. And how much the repairing expenses company will pay you will depend on the coverages you have bought in your policy.
The most common cover of this policy is zero dep. (Depreciation). People also call this bumper to bumper or nil depreciation. Because of this cover some people call this zero dep. Policy instead of comprehensive policy.
Some common coverges(Add-ons) of this policy
- Zero depreciation or depreciation reimbursement
- Key protection
- Loss of Personel belongings
- Roadside assistance
- Consumable cover
- Tyre secure
- Engine secure
- Return to invoice
Click here to know the benefits of these add-ons.
Best car insurance companies 2020
1. Icici lombard general insurance company
Icici lombard founded in 2001 headquarter in mumbai is the market leader in general insurance industry. It also provides health insurance, travel insurance, personel accidental insurance, home insurance, whether insurance, property insurance, marine insurance, crop insurance along with car insurance. There are around 8400 employees are currently working all over the India. Its net income is US $150 millions.
It is also the only private sector general insurance company which is listed on NSE as ICICIGI.
- Market share- has the highest market share of 7.6 in the industry.
- Has a claim settlement ratio of 87.38%.
- Provides cashless facility all over the India.
- Provides 24/7 roadside assistance.
- Official website - https://www.icicilombard.com/
- Tollfree no. 1800-2666
2. Bajaj allianz general insurance company
Bajal allianz general insurance company founded in 2001 headquartered in pune is one of the market leader in this industry. It also provides health insurance, marine insurance, home insurance, travel insurance along with motor insurance. They are operating in around 200 cities in India and have more than 3500 employees. Its net income is around US$ 84.
- Market share- it has the market share of 7.1%.
- The company has a high claim settlement ratio of 98%.
- Provides cashless facility all over the India.
- Provides 24/7 roadside assistance service.
- Official website - www.bajajallianz.com/
- Toll free no. - 1800-209-5858
3. HDFC ergo general insurance company limited
HDFC ergo general insurance company limited founded in 2002 has 120 branches all over the India and more than 3000 employees and its headquarter is in mumbai. The company also provides health insurance, travel insurance, personel accidental insurance, home insurance along with motor insurance. They have won the award of best general insurance company in India in 2013 and 2014.
- Market share - They have 4.4% of market share.
- Claim settlement ratio - It has a claim settlement ratio of 83.66%.
- Provides cashless facility all over the India.
- Provides 24/7 roadside assistance.
- Official website - www.hdfcergo.com
- Toll free no. - 22-6234-6234
4. Iffco tokyo general insurance
Iffco tokyo general insurance founded in 2000, headquartered in gurugram. And it has able to fix its place at no. 4 because of its market share. Their main products are motor insurance, health insurance, travel insurance, home insurance.
- Market share - Iffco tokyo has market share of 4.3 %.
- Claim settlement ratio - They have a claim settlement ratio of 92%.
- Provides cashless facility all over the India.
- Provides 24/7 roadside assistance facility.
- Official website - www.iffcotokio.co.in
- Toll free no. 1800-103-5499
5. Tata AIG general insurance company limited
Tata AIG (American Insurance Group) general insurance company limited founded in 2001 headquartered in Mumbai. The insurance company is a joint venture between Tata and american insurance group. Their products are health insurance, travel insurance, motor insurance, marine insurance, home insurance, fire insurance, personel accidental insurance.
- Market share - Tata aig market share is 3.6% in indusrty and standalone travel insurance market share is around 36%.
- Claim settlement ratio - Tata aig have a claim settlement ratio of 87%.
- Provides cashless facility all over the India.
- Provides 24/7 roadside assistance facility.
- Official website - www.tataaig.com
- Tata AIG toll free no. - 1800-266-7780
6. Bharti axa general insurance company limited
Bharti axa general insurance company limited founded in 2008 headquartered in mumbai has been working with 106 branches accross the India. They provides car insurance, two wheeler insurance, travel insurance, home insurance, critical illness insurance, personel accidental insurance.
- Market share- Company has a good market share of 2.6 % in general insurance industry.
- Claim settlement ratio - 98%
- Provides cashless facility all over the India.
- Provides 24/7 roadside assistance facility
- Official website - www.bharti-axagi.co.in
- Toll free no. - 1800-103-2292
7. Future generali insurance company limited
Furture generali insurance company limited founded in 2007 headquartered in mumbai are operating in more than 126 cities in India. They are providing health insurance, travel insurance, motor insurance, home insurance.
- Market share- 1.7% overall market share
- Claim settlement ratio - The company has a good claim settlement ratio of 95%.
- They have cashless facility all over the india.
- Roadside assistance team service 24/7
- Official website - General.futuregenerali.in
- Toll free no. - 1800 102 2355
8. The New India Assurance Company Limited
The New India Assurance Company is a government company operating in general insurance since 1919 headquartered in Mumbai. They are also operating in foreign countries Japan and Newzealand. They are operating with around 17615 employees. Their key products are motor insurance, health insurance, crop insurance, marine insurance, property insurance, aviation insurance.
- Market share - Because the company is also operating in foreign countries and it also does aviation insurance they have a market share of 12.6 in insurance industry.
- Claim settlement ratio - 91%
- Have cashless facility all over the India but not with that much showrooms.
- Roadside assistance facility 24/7
- Official website - www.newindia.co.in
- Toll free no. - 1800-209-1415
9. National Insurance Company Limited
National insurance company limited is a government company operating since 1906 headquartered in Kolkata. They provide motor insurance, medical insurance, commercial insurance, property insurance, accidental insurance, industrial insurance,
Rural insurance. They are operating in India with across 11000 employees.
- Market share- has a good market share of 8.63%.
- Incurred Claim ratio - 115.5%.
- Have cashless facility all over the India but not with much showrooms.
- Roadside assistance service 24/7
- Official website - nationalinsurance.nic.co.in
- Toll free no. - 1800 200 7710
10. Royal Sundaram General Insurance Company Limited
Royal Sundaram General Insurance founded in 2000 headquarted in chennai is a private sector company. Their key products are car insurance, two wheeler insurance, travel insurance, travel insurance, accidental insurance, health insurance.
- Market share - 1.74% market share in general insurance industry.
- Incurred claim ratio- 82.15%
- Tied up/cashless facility all over the India.
- 24/7 roadside assistance service
- Official website - www.royalsundaram.in/
- Toll free no. - 1860 425 0000
Factors you should consider while buying a car insurance policy
If you have car then it is your resposibility to buy a policy which has add-ons which is actually required. Usually when your car insurance dew for renewal a lot of agents and brokers try to contact you offers you many qoutation and you got confused that which is right for you. The things which is more important is that if whenever needed the claim got easily settled. Lets see some factors while choosing a best car insurance company.
1. claim settlement ratio
Claim settlement ratio is the percentage of claim the company has been settled out from the claims occured. You should buy your car insurance policy from that company which has the high claim settlement ratio. Sometimes people just buy it by seeing the low premium only. If the claim settlement ratio is low of that company. And your claim also doesn't got settles then what is the profit of that low premium.
2. Insured declared value
Insured declared value is the maximum amount which is payable to customer in the case of claim. As per guidelines of IRDAI the insured declared value should be depreciated by 10% per year from the previous one. But sometimes brokers or agents decreased it even more than 10% just to lower your premium. And you got also convinced by seeing low premium. If you think your car IDV is low you can ask the insurers to increase it. But remember that the IDV directly derive the premium the more the IDV the high the premium.
3. Don't buy extra
Sometimes broker or agents convinced you for those covers also which you won't need just to increase their buisness. So listen and read the coverages carefully and decide which cover is important for you and which is not. Don't pay for the extra.
4. No claim bonus
No claim bonus is the discount which you get if you didn't claimed during the previous policy period. Every company mention you NCB in your policy. But some companies do not mention it. So, please if Ncb is not mention ask them to endorse your policy.
Conclusion
The above all the 10 companies are best car insurance companies. Its depend on you which company you should choose while considering the factors and your needs.
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