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Demystify Motor Insurance Google+ Hangout – Queries and Answers (II)

Our Google+ Hangout on Demystify motor insurance aimed to clear every doubt that viewers had about motor insurance, regardless of the company offering it. However, due to time constraints, not every query could be answered live. That’s why we decided to compile a list of every query that was submitted to us during and before the Hangout, along with the answer to each.

This is part 2 of the list.

Part I can be found here

Q. What are my rights regarding No Claim Bonus? How can I continue my No Claim Bonus? What is the time limit for applying for No Claim Bonus certificates, and what are the requirements to do so?

-                      Rajan

A. If you haven’t claimed any claims for your motor insurance, then you are entitled for No Claim Bonus as per the policy terms and conditions. The time limit for applying for No Claim Bonus certificate is 3 years in case the vehicle is changed and in case you want to transfer same NCB in your new vehicle. In case of a break-in applicability of the NCB is within 90 days for same vehicle. For transfer of vehicle, NCB registration certificate is required.


Q. Under a motor insurance policy, what is the ceiling on Third Party claims in case of an accident? Where and how is this defined in case of a particular policy?

-          Kalyan Kumar Mitra

A. There is currently no ceiling on the Third Party Claim in case of accident as well as death of a third party.


Q. I read an article which said that going forward the color of the car, driver’s gender, etc. will also be a factor for deciding premium. But how can this be generalized? A person may be passive and yet like vibrant colors. :)

-          Siddharth Chaudhary

A. Color of the car could only be one of the parameters and may carry very little weightage for deriving the payable premium

Q. I came across the term ‘Knock-to-Knock’ arrangement. Could you explain how this works?

-          Shravan

A. A knock-for-knock agreement is an agreement between two insurance companies whereby, when both companies’ policy-holders incur losses in the same insured event (usually a collision accident), each insurer pays the losses sustained by its own policy-holder.


Q. A custom mobile application could be provided to the customers who buy motor insurance through which they can take real time photographs of their accidental vehicles. To avoid fraud, while clicking the pictures, a time/date stamp would automatically get updated in the picture.

-          Anisha Luke

A. Bajaj Allianz has empowered its claims team with tablets which have the facility of clicking and uploading claim photographs instantly using our application, Ezee Tab. We are analyzing the possibility of allowing vehicle inspections by customers directly and will soon be launching this in the market.


Q. Believe a Third Party claim can be made even 3 years from date of accident. Is this true? This might also encourage fraud cases. How is this checked?

-          Priya Yadav

A. Yes, a third party claim can be made after 3 years of date of accident also. We have an investigation mechanism in place to keep a check on fraud claims.


Q. How is own damage discount different from No Claim Bonus in a motor insurance policy? At times it confuses me.

-          Prashant Keshwain

A. No Claim Bonus (NCB) discount is given on the own damage premium of the policy as per Indian Motor Tariff. After detarrifing in 2007, insurance companies give additional discount based on the proposed risk. This discount is different than the NCB discount.


Q. What can be the consequences if my car Insurance surpasses its due date and does not get renewed?

-          Sneha Sen

If the vehicle insurance has lapsed, no claim under the policy will be paid for losses arising after the risk expiry date. Also, as per Motor Vehicle Act, all vehicles plying in a public place have to be compulsorily insured against third party injury and property damage. So we suggest that renewal of the policy should be done well in advance of the policy expiry date.


Q. Which car insurance policy would you advise after 3 years of the car purchase (with add-on or without it)? Which ones would be most suitable?

-          Unmesh

We advise a comprehensive policy with add-on covers like Nil Depreciation (available for vehicles up to 5 years of age) and 24×7 Road Side Assistance (for all vehicle age).


Q. What are my rights regarding No Claim Bonus? What is the time limit for applying for No Claim Bonus certificates & what are the requirements to do so?

-          Rajan

A. No Claim Bonus (NCB) can be earned under the policy at time of renewal if no claims/name transfer is done of the previous policy for 12 months. Insured can apply for a NCB Certificate within 90 days from the sale/transfer of the vehicle. We need documentary proof for sale or transfer to be able to issue an NCB certificate.


Q. In case of full insurance, how much percentage of No Claim Bonus must be given, if the policyholder has not made any claim for a long period?

-          D.I.Shukla

A. Yes, for every claim free renewal, NCB is increased, with a maximum limit of 50%, as per Indian Motor Tariff provisions. The year-on-year NCB Slabs are – 20%, 25%, 35%, 45% and 50%.

Q. What is the procedure to take PA cover for other passengers apart from the driver of a personal car?

-          Shueb Ahmed

 A. At time of purchasing the policy, please mention in the proposal form that you wish to opt for PA Cover for passengers also. Upon payment of applicable premium, this cover can be taken.

And of course, remember to always have your car insurance policy with you, in case you face trouble and need to call for help! For more information on how our motor insurance policy can serve you on the road, click here.

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Published on:21 Jun, 2014

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