Motor & Assets Insurance: Buy Insurance for Your Vehicle Online

Q: Is vehicle insurance mandatory in India?

Yes, as per the vehicle insurance Act, 1998, all vehicles must be secured via a third party vehicle insurance policy. The Government has made it mandatory and expects the vehicle owners to comply with the law. Non-compliance with the same leads to heavy fines and penalties. The minimum requirement is that the vehicle must at least have an active third party liability cover. More than that, it is the financial security that the insurance provides during an emergency. Insurance companies offer add-on facilities as benefits to the insured to derive maximum benefits from the policy.

Q: What is a No Claim Bonus in a vehicle insurance policy?

A no-claim bonus acts like a reward given by the insurance company to the insured due to their safe driving. It is an integral part of the policy, which means benefits are provided in the year when there are no claims made by the insured. This could be awarded by way of a discount on bike or car premium for the coming year. This acts as a relief to the policyholders as due to the rising inflation costs, premium rates also tend to increase. It is applicable only on the Own Damage Premium component of the policy and not in the case of third-party insurance. The discount range varies from company to company.

Q: What is third-party vehicle insurance?

There may be certain unfortunate cases where a person is legally held liable for injuries or even sued in case of accidents or damage done to a third party. In such cases, the third-party vehicle insurance readily indemnifies the insured person and takes care of the expenses on their behalf

Q: Can I claim vehicle insurance if I damage my vehicle?

Yes, we can claim vehicle insurance for our vehicle when it happens to be damaged unintentionally by the owner/insured only if one has a comprehensive or own damage cover as a part of their policy. Therefore it is suggested that one should opt for a comprehensive cover or an Own Damage cover in cases where they have an active third party cover. The reimbursement can be partial or complete, depending on the type of policy.

Q: Can the Insurance Company deny your claim?

It so happens that the insurance company can deny claims. It can happen under several circumstances like – details provided during a claim request could be false or inaccurate. It can also happen if the policy is purchased for personal use and the insurer finds that the vehicle was used for commercial purposes or if the insured cannot provide proper receipts required to back up the claims of potential thefts of items of the vehicle.

Q: What are the key benefits of vehicle insurance?

Insurance is not only provided to brand new vehicles but also second hand or used vehicles. The premium offered is relatively cheaper in such cases.Vehicle insurance protects you against legal and financial liabilities arising out of third party damages/injuries/death. It can also protect your own vehicle against damages due to an accident, fire, uncertainties like natural calamities etc. One can also opt for a personal accident cover of 15L (which is mandatory for the owner driver) in case they don’t have one on the payment of an extra premium. A Compulsory personal accident cover protects you against self hazards caused due to an accident while driving your own vehicle.

While owning a vehicle is most people’s dream, it takes years of hard work to be able to do so. The damages can be immense if an unfortunate incident occurs. This is where Vehicle Insurance comes in handy.

Types of Vehicle Insurance Online by PhonePe

The following are the types of Vehicle Insurance offered by our PhonePe app for the convenience of our customers:

Bike insurance

According to motor insurance act 1988, It is also mandatory for two wheelers in India to have an active third party cover at any point in time.

Car insurance

The Motor Vehicles Act 1988 has made it compulsory for cars to have an active third party liability insurance cover.

What is a Vehicle Insurance
Policy?

The damages to the vehicles can be immense if any unfortunate incident occurs. To protect against accidents, we have a Vehicle Insurance policy. Vehicle insurance is like any other insurance, except with other insurances the choice is ours; in this case, it is mandatory to have at least an active third party insurance cover.

The Government decided to make it mandatory for the betterment and security of society. Policies provide extensive coverage to both two and four-wheelers, depending on the type of vehicle one has and opts to insure. There are three types of Vehicle Insurance policies, Third-party, Comprehensive and Own Damage Insurance policies.
Under Third-party insurance, only the damages/losses caused to a third-party person or property are covered as a part of the plan. On the other hand, Comprehensive insurance offers complete coverage by covering not only third-party liabilities but also losses/damages to your vehicle like loss due to an accident, fire, natural calamity, or even theft of the vehicle. In case you have an active third party cover and want to protect your own vehicle from damages too, you can opt for an Own Damage cover. One can also opt for a Compulsory Personal Accident cover in case you don’t have one. It compensates the insured owner-driver up to a sum of Rs 15 lac in case of death or permanent disabilities to the insured due to an accident involving an insured vehicle.

Why is a Vehicle Insurance Policy Important?

Owning a vehicle in today's times has become a need more than a luxury. People prefer to travel long-distance or for any other requirement in the comfort of their cars instead of other means of transport. At the same time, it is crucial to have a Vehicle Insurance policy in place by securing car insurance or bike insurance for owned vehicles.

When one sits down to analyse their needs and requirements, they understand a lot more about the Vehicle Insurance policy they could opt for. Due to the growing market, several insurance companies provide the best of services and plans. Vehicle insurance policies not only cover damages to one's vehicle but also losses covered to anyone getting injured (third-party) in any sort of mishap or accident.

One may be a fantastic driver, but unforeseen circumstances are not in our control, for which we need to be prepared in advance. Customers tend to be ignorant towards Vehicle Insurance due to the rising premium rates. However, it guarantees to be a valuable and essential investment if we look at it from a long-term perspective.

In the end, the Vehicle Insurance policy should match the size of the pocket and not burn a hole in it or be a burden on the existing expenses of any individual. With maximum coverage and ideal exclusions, a decent vehicle insurance policy proves to be quite effective during times of need. It will cover the costs of damage and relieve the insured from financial stress.

Benefits of Buying Vehicle Insurance Online

Since insurance policies are offered both online and offline, there are several benefits to buying a policy via the online method. Let us look at the pros of online buying as compared to an offline mode:

Minimal Documentation

Less paperwork or zero documentation is one of the best offerings in online Vehicle Insurance. The documents required to fulfil the criteria are submitted online, and the proposal form is also filled digitally. Once it is approved, the policy document is sent over to the insured in soft copy form at the registered email ID.

No Requirement of an Insurance Agent

We make it easy for you to understand the details of your policy, what it covers and what it does not cover, which ultimately eliminates the need for an insurance agent.

Instant Policy Issuance

It is only a matter of minutes after you have made your choice for your insurance policy to be issued. Individuals do not have to wait endlessly for days to get the policy approval. As compared to offline mode, it generally takes days for the policy documents to be issued.

Online Comparison

This benefit stands out between online mode vs. offline mode. Policy seekers are able to compare and analyse several policies of different companies on their own. This enables them to understand where they can derive maximum benefits. The comparable points that generally get checked are – coverage, features, and premium rate.

Minimal Documentation

No Requirement of an Insurance Agent

We make it easy for you to understand the details of your policy, what it covers and what it does not cover, which ultimately eliminates the need for an insurance agent.

Instant Policy Issuance

Online Comparison

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What is Covered in Vehicle Insurance?

It is duly necessary to check and verify the kind of coverage provided by the insurance company before proceeding to make any final commitment. Under any policy, one should check for the most apparent and mandatory inclusions. Some are categorised under:

Third-Party Cover

Covers legal liabilities

In the unfortunate event that an accident leads to the death of a person, the policy will cover the legal liabilities arising out of the same and compensate the family of the deceased as per the Court’s judgement.

Damages to third party

Covers damages to a third party property up to a sum of INR 7.5 lakhs. It also includes damages to a third party vehicle.

Treatment of injuries

Covers the cost of treatment of injuries to a third party in case of an accident.

Comprehensive Policy

Unforeseen Circumstances

We often come across unexpected severe circumstances that could turn our lives around. Some unforeseen situations could be natural calamities like tsunamis, earthquakes, floods, etc.; Vehicle Insurance policies also cover damages to your vehicle due to riots, strikes, explosions, damage caused due to fire, etc and even theft.

Repairs of vehicles

When your vehicle gets damaged due to an accident, this policy covers for repairs of your vehicle.

What is Not Covered in Vehicle Insurance?

With Insurance, it is the exclusions that one has to be careful about. The common exclusions are given below:

Illegal Driving

If one is found driving without a valid driver's license, violating traffic rules, if the driver is underage, if they are not a legal citizen of the country or if the insured or any other person with the consent of the insured is found driving the vehicle under the influence of alcohol/drugs, then the damages arising out of an accident are not covered by the insurance policy and responsibility for all damages occurring out of it is of the owner.

Consequential Damages

If there is any compulsive decision after knowing a possible severity, it is not covered. For e.g., if the engine oil is leaking and the driver chooses to go on with the ride, thereby failing the gearbox, it is consequential damage. This would not be covered in the policy. Cases of violation of the vehicle manufacturer’s guidelines for use of the vehicle are also not covered.

Commercial Use

As your vehicle is registered for personal use, the cover will not be valid if the vehicle is found to be used for commercial activities. Claims arising from contractual liabilities (insured pledging their vehicle on loan) are also not covered if the vehicle is not being driven by the insured at the time of the accident.

Expiration/Lapse of Policy

Any damages/liability arising after the expiration of the policy will not be covered by the company. Renewal of the Vehicle Insurance policy is a mandatory criterion before applying for any claims whatsoever.

Damages due to nuclear activities

Any damage to the vehicle due to war, nuclear radiation/ weapons, rebellions or invasions are not covered.

Criminal Activities

If there is any chance that the vehicle is involved in any kind of heinous crimes like murder, staged accidents, or theft, then one cannot avail insurance benefits.

Why use the PhonePe App for Buying Vehicle Insurance Policy?

PhonePe, apart from providing services in digital wallets, UPI payments, mutual funds, introduced insurance products with the aim of providing a one stop solution to the customer for their financial needs.

The affordable prices coupled with the multitude of options

Enhanced coverage for their vehicle with value added services such as engine protection, zero depreciation, etc.

Bike Insurance plans start at just INR 538/yr* and Car insurance starts from INR 2094/yr^.

A policy can be issued in less than two minutes.

*TP Price for less than 75CC two-wheelers. All savings are provided by insurers as per IRDAI approved insurance plans. Standard T&C apply.
^TP Price for less than 1000CC cars. All savings are provided by insurers as per IRDAI approved insurance plans. Standard T&C apply.

STEP 1/4

1. Select Insurance Options
Select the Insurance tab and choose a Motor Insurance type
2. Enter details
Enter your car number and proceed
3. Select the Plan & fill other details
Choose your desired plan & Provide owner and car details next
4. Buy Plan
Review & Buy