MOTOR FAQs

1.Why do I need Insurance?

Insurance is a hedge against the occurrence of unforeseen incidents. Insurance products help you in not only mitigating risks but also helps you by providing a financial cushion against adverse financial burdens suffered.

2.Is Motor Insurance compulsory?

Yes. Under the Motor Vehicles Act, all motor vehicle owners must have third party insurance cover.
The law in the country makes it compulsory for you to insure your motor vehicle. The compulsory nature of the law protects you against third party liability. While insuring against third party liability is important, it also makes good sense to buy a comprehensive cover to give you all round protection.

3.Why do I need to insure my motor vehicle?

Your vehicle is probably one of the most expensive things you own. Insurance protects this asset and helps you in coping with the financial loss caused by accidents, damage or theft. Another reason is that while driving, you are responsible for the safety of:

Your passengers
Your fellow drivers
Other people's property
Pedestrians
Yourself

Insurance helps cover the costs of potential damages or injuries in case of an unforeseen accident or theft. Above all, in India it is mandatory to have at least a Third Party Motor Insurance before you can drive on the roads.

4.Can add-on cover be bought or cancelled in the middle of the year on the standalone basis?

No.Add on package can be sold or cancelled only with Smart Drive Motor Policy. It cannot be bought or cancelled on standalone basis. Hence, midyear inclusion or cancellation of cover is not available.

5.What is the scope and cover offered in a Private Car Insurance Policy?

The private car can be used for social, domestic and pleasure purposes and also for business purposes excluding the carriage of goods other than samples by the insured or his employees. The insurer will protect the customer against any loss or damage to the private car and its accessories whilst thereon for the following events:

- Fire, explosion, self ignition or lightning
- Burglary, housebreaking or theft
- Riot or strike
- Earthquake (fire and shock damage)
- Flood typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost
- Accidental external means
- Malicious act
- Terrorist activity
- Whilst in transit by road, rail, inland,
- waterway, lift, elevator or air
- Land slide, rock slide

6.What are the types of events or losses not covered under motor insurance?

The following events or losses are not covered in this policy:

Mechanical/ Electrical breakdown
Wear and tear, ageing of vehicle
Consequential loss*
Depreciation
Deliberate accidental loss
Intoxicated driving
Any contractual liability
Damage to/ by a person driving any vehicle without a valid license

* Consequential loss is an indirect loss, which is not directly resulting out of a loss event, but arising as a consequence of loss event. For example, Mr. Singh was on his way to office for an important meeting with client. Unfortunately, his vehicle met with a road accident resulting in damages to vehicle and it consumed lot of his time. Due to this, he could not attend the meeting resulting in loss of approx 15 Lakhs. Damages to vehicle due to the accident are covered however, but the loss of 15 Lakhs is consequential and hence not covered.

7.What is a premium?

Premium is the fixed amount of sum paid over the period by the insured to the insurance company to take insurance policy and to complete the contract of insurance.

8.What are the Personal Accident covers available under Private Car policies?

The various PA covers under Private Car policies are:

- PA to the Owner Driver

- PA to the Paid driver

- PA to the Unnamed occupants

- PA to the Named occupants

9.What are the Additional products that can be availed with the private car package policy?

There are four important additional cover available for motor insurance. They are the best car insurance covers offering additional protection coverage to you.

Depreciation Cover
Hospital Cash cover
Roadside Assistance Cover
Personal Accident for Family/ Passenger
Medical Expenses Cover
Ambulance Charges
Invoice Price Cover

10.What is depreciation cover?

Depreciation car insurance cover provides you compensation without any deduction for depreciation on any replacement of parts arising due to accident. Depreciation Cover offers multiple advantages with just an additional premium amount covering;

All plastic parts in case of a claim without applying depreciation
All fibre parts in case of a claim without applying depreciation
For any replacement of parts arising out of accident
Vehicle up to 5 year of age from the date of registration

11.What is Hospital Cash Cover?

Hospital Cash is an additional insurance coverage to take care of allowances in hospital for those who sustained injuries by accident while travelling in insured car. It provides a fixed amount for cost of medical care availed per day at the hospital. Hospital Cash covers:

Daily cash benefit on hospitalization
Covers out of pocket expenses and other needs
Covers the amount selected against per day of hospitalization

12.What is Roadside Assistance Cover?

Roadside Assistance Cover provides you services in the event of breakdown of your vehicle. You might require road assistance to tackle problems such as a flat tyre, a dead battery or keys getting locked inside your car.

13. What is Personal Accident for Family/ Passenger?

Personal Accident Insurance for Family/ Passenger covers monetary payouts towards injuries sustained by people/ passenger travelling in the car due to accident resulting in death to disablement. Personal accident insurance covers insured/his family/passengers travelling in the car at the time of accident. This add-on covers: