Motor Insurance

Know the difference between Private & Public Goods Carrier vehicle to avoid insurance claim rejection due to incorrect policy issuance..

It is important for you to understand the classification of Private & Public Goods carrier vehicle to avoid incorrect policy issuance which might lead to insurance claim rejection.

Here are some of the major differences between Private & Public Goods carrying vehicle

Vehicle owned by a company or individual for the transportation of its own personal goods as its primary business and not for commercial business purposes. Vehicle owned by a company or individual for the transportation of public goods for commercial business purposes.
Vehicle is not used as for-hire carrier and does not transport goods of other companies or individuals. Vehicle is used as for-hire carrier and carries the goods of other companies or individuals.
For example, ABC Co. Ltd. who owns the vehicle and uses it for the transportation of spare parts which it manufactures and supplies to various OEMs. ABC Co. Ltd. insures the vehicle under "Private Carrier" category. For example, XYZ Co. Ltd. who owns the vehicle and uses it for the transportation of cars/bikes manufactured by various OEMs. XYZ Ltd. insured the vehicle under "Public Carrier" category.

It is important to understand the differences in the rates of Own Damage Premium and Third-Party Premium for public and private goods carrying vehicle. These goods carrying vehicles have been classified under Private and Public goods carrying vehicles, as the risk involved in the transportation is completely different for each other. Carrying goods not belonging to the insured himself warrants denial of claim in private career category.

So, the difference in the rates of Own Damage Premium and Third-Party Premium for both the class of vehicles should be known to the vehicle owners.

Rates of Premium for Own Damage (OD) Cover is as mentioned below (Insurance companies do offer discount, basis their underwriting guidelines)

Age of vehicle Zone - C* Zone - B* Zone - A*
GCV Public Carrier (Class A.1) GCV Private Carrier (Class A.2) GCV Public Carrier (Class A.1) GCV Private Carrier (Class A.2) GCV Public Carrier (Class A.1) GCV Private Carrier (Class A.2)
Not exceeding 5 years 1.726% on IDV of the vehicle 1.208% on IDV of the vehicle 1.743% on IDV of the vehicle 1.220% on IDV of the vehicle 1.751% on IDV of the vehicle 1.226% on IDV of the vehicle
Exceeding 5 years and not exceeding 7 years 1.770% on IDV of the vehicle 1.239% on IDV of the vehicle 1.787% on IDV of the vehicle 1.251% on IDV of the vehicle 1.795% on IDV of the vehicle 1.257% on IDV of the vehicle
Exceeding 7 years 1.812% on IDV of the vehicle 1.268% on IDV of the vehicle 1.830% on IDV of the vehicle 1.281% on IDV of the vehicle 1.839% on IDV of the vehicle 1.287% on IDV of the vehicle

Rates of Premium for Third Party (TP) Cover is as mentioned below (This is a fixed & regulated premium and no discount is being offered by Insurance companies)

Basic Third Party Premium (Excl. of GST)
(Subject to change as per IRDAI guidelines)
Gross Vehicle Weight GCV Public Carrier (Class A.1) GCV Private Carrier (Class A.2)
Not exceeding 7500 Kgs 15746 8438
Exceeding 7500 Kgs but not exceeding 12000 Kgs 26935 17204
Exceeding 12000 Kgs but not exceeding 20000 Kgs 33418 10876
Exceeding 20000 Kgs but not exceeding 40000 Kgs 43037 17476
Exceeding 40000 Kgs 41561 24824

*Zone A- Chennai, New Delhi, Kolkata, Mumbai

*Zone B- All other state capitals

*Zone C – Rest of India

Flood affected cars: How to get a claim and prevent your vehicle from damage?.

Monsoons are the perfect time to enjoy long drives in your beloved vehicle. However, that is also the time that leads to a lot of wear and tear in vehicles (courtesy the potholed roads and waterlogging).

God forbid if you get stuck in a flood with your car! If yes, then you need to act fast.

  • 1. Look for a higher ground to park the vehicle and completely seal it up
  • 2. Don’t start your submerged vehicle. The water would make the engine stop permanently
  • 3. Disconnect the battery terminals, as that is the first thing that stops working and starting the car again after the flood would become difficult
  • 4. Stay away of the puddles and water-logged area
  • 5. Inform the insurer immediately if you feels, vehicle effected by flood

However, if your vehicle is already damaged by the flood, then you would be required to raise a claim with your insurance company. So many Insurance policy holders tend to make a motor claim during this period.

Few steps that you can do to check if your car has been damaged by the flood:

  • 1. Check if the carpets are musty or smelly. You might need to replace the carpets
  • 2. Look for rust in the bare metal parts
  • 3. Look for debris and mud in all the nook and corners
  • 4. Take your car at an authorized garage
  • 5. If you need to raise a claim then;

    Step-by-step process to claim your car insurance policy for a flood affected vehicle:

    • a. First you need to inform the insurance company of the potential claim
    • b. Look for your policy documents in your email as the hard copy might already be submerged in your car
    • c. If you have an engine protect cover, then the repair work of your engine would be covered in your insurance policy as well
    • d. Ask your garage to give you an estimate of the cost to repair your vehicle
    • e. Provide the estimate to your insurer so that the surveyor can check the same
    • f. Once the survey is done, your insurer will approve a certain amount that is necessary for the repair of the vehicle
    • g. Then you can proceed with the repair work with the garage
    • h. If the garage is an authorized centre of your insurer, then you can process a cashless claim. Else you would have to pay for the same and then claim a reimbursement
    • i. However, if your car is completely damaged and is considered to be a “total loss” then an equivalent amount would be paid to you. The insurance companies have a simple process for the flood-affected vehicles that has been completely destroyed.
  • 6. Ensure you get an overall service done of your vehicle so that the brake, clutch, etc. is serviced and does not stop suddenly.

Top #5 ways to take precautions of your vehicle if you stay in a flood-prone region:

Here are some tips which will help you save some moolah and get the most out of your motor insurance policies if you happen to stay in a flood-prone area.

1. Roadside Assistance

Before taking the damaged vehicle to the garage, check if you’re insurance entitles you to any roadside assistance. You can save on expenses such as towing costs, pick-up expenses etc. One should never try to drive the vehicle on their own post an accident or breakdown as it can further increase the damage and lower the claim amount. Also, no repair work should be initiated without the consent of the Insurance Company.

2. Inform Insurance Company ASAP

Whether your vehicle is broken down because of the flood or it met with an accident, ensure to inform the insurer at the earliest. Check in your policy document and the time frame within which incidents need to be reported.

3. Protect the engine

One major cover that most people do not go for is a hydrostatic or engine protection over. However, if you stay in a city which gets plenty of rainfall, this is a must. Hydrostatic lock happens when the engine comes in contact with too much water (parked in a flooded area or travelling through waterlogged locations) and consequentially does not start.

The scope of basic motor insurance policies does not extend to such consequential losses. Hence, it is better secure your vehicle with all necessary insurance. After all, entire engine is the most expensive component in any vehicle.

4. Do not forget the consumables

Are you feeling totally secured after taking a comprehensive motor insurance policy? Do you know that the consumables (engine oil, nuts, bolts, ball bearings, etc.) are not covered under these policies? Also, these components need to be frequently replaced and play a crucial role in functioning of the car. If not repaired or replaced timely, they can adversely affect the working of the overall vehicle. A consumable cover can be added to the existing insurance policy at a nominal cost. So, before you think of claiming your motor insurance, ensure that you are covered 100%.

5. No Claim Bonus (NCB) protector

NCB is a reward or discount given to the policyholder for each zero-claim year. Accumulating this bonus proves fruitful while renewing the policy as it brings down the premium amount. So, before rushing to make that claim, try and assess the financial impact of the damage. If it is a minor damage or small amount, it may make more economic sense to bear the costs and earn the NCB.

So, now that you know how you can optimize protection for your vehicle, you can peacefully cherish the fritters, corn and long drives in the rain!

Write to us at [email protected] or call us at 1800 266 2626 if you need any further assistance.

Monsoon and motor care – care for your vehicle this monsoon.

Monsoon is around the corner and you must be eagerly awaiting lower temperatures, rains, pleasant weather and a change in the landscape. After the hot and sweltering summer subsides, it gives way to the monsoon season and rains provide the much needed cool. In such weather, don’t you feel like going on a drive to hilly areas which promise lush greenery?

Though monsoons are a great way to beat the summer heat, they spell trouble for your vehicles. As the roads get water-logged, driving becomes difficult and your vehicle suffers. Moreover, there is reduced visibility in a downpour or in foggy weather which results in accidents. In fact, accidents are quite common during monsoons and so road safety is particularly stressed upon during the season. Even with your vehicle, you should be careful in using it during the monsoon season. Here are some tips on how you can care for your vehicle in monsoons –

  • Get your vehicle serviced

Before the monsoon starts and after it is over, servicing of the vehicle is a must. Servicing before the monsoon would help you to keep your vehicle in top shape such as Battery, wipers, Wiper & Headlamps so that it can bear the brunt of the season. Servicing after monsoons would take care of all major or minor damages which the vehicle has suffered. So, servicing is a must.

  • Check the health of your tyres

Driving in monsoons wears out your vehicle’s tyres because they work overtime to maintain grip on the wet road so that the vehicle doesn’t skid. As such, checking the tyre health becomes necessary. Look for possible punctures in the tyres and maintain the suitable air pressure at all times. If the tyres are worn out, replace them before they result in a contingency. Also, keep a spare tyre in your car at all times. You never know when the tyre would come in useful

  • Drive at safe speed

The first tip is also the very obvious one. In heavy rainfall the visibility is low and the chances of accidents increase. Moreover, after a downpour the roads are wet which increases the chances of skidding. So, when you are driving maintain your speed to avoid skidding. Keep your headlights on and use the car’s wipers on a full speed for proper visibility.

  • Keep your vehicle clean at all times

After a drive, your vehicle gets dirtied due to dirt, mud and muck when it has rained. So, after the drive, clean the vehicle immediately to prevent the mud and muck from drying out. If they dry out and stick to the vehicle’s exteriors, it takes more time and a vigorous cleaning. This vigorous cleaning can damage your vehicle’s paint. So, keep your vehicle clean at all times. Moreover, try and park your vehicle in a shaded area to prevent mud to stick to the vehicle when it rains.

  • Carry monsoon essentials

When driving in monsoon, monsoon essentials should not be given a miss. If you own a motorcycle, a raincoat should be carried at all times so that you can wear it when rain starts. In case you have a car, carry an umbrella. Moreover, carry towels and old newspapers in the car. The newspapers would help in absorbing water in the leg room and the towels would help keep your car seats dry.

  • Invest in a comprehensive motor insurance policy

Taking good care of your vehicle also includes insuring it under a comprehensive motor insurance policy. A third party insurance policy is mandatory by law but the policy does not cover the damages suffered by your vehicle itself. That is why, when buying motor insurance, opt for comprehensive plans. These plans cover the damages suffered by your vehicle too. In fact, the policy proves very useful if your vehicle suffers damage in floods as such damages are covered under it. Moreover, comprehensive plans also allow optional add-ons which increase the scope of coverage. An engine protect add-on is very relevant if you stay in an area which faces the problem of water-logging during monsoons. The add-on pays for the damages suffered by the engine if it is damaged due to water-logging. So, besides observing the above-mentioned safety norms, also invest in a comprehensive motor insurance policy and choose an engine protect add-on to cover the damages suffered by the engine.

The monsoons should not be the time to regret the damages suffered by your vehicle. Follow the above-mentioned tips and ensure proper care for your vehicle this season.

Write us on [email protected] if you have any query.

Motor Insurance.

The Motor Vehicles Act which was passed in the year 1988 contained a long list of legal mandates for motor vehicles being driven on Indian roads. Having a valid motor insurance policy was also one mandate which is still applicable. The law states that every motor vehicle, whichever type it may be and for whichever purpose it is being used, should have a valid insurance cover on it. This law gave birth to motor insurance policies in India which cover motor vehicles.

Types of motor insurance policies

Motor insurance policies come in three distinct types depending on the type of vehicle covered by them. The most common policies include the following:

  • Car Insurance Policies – These policies cover cars which are being used for personal conveyance of individuals. The policy can be taken for both new cars as well as second-hand cars.
  • Two-Wheeler Insurance Policies – Plans designed for loan repayments. The sum assured under these plans decrease every year by a fixed amount
  • Commercial Vehicle Insurance Policies – These policies are specifically meant for vehicles which are being put to commercial use. The vehicle can be a car, two-wheeler, truck, bus, tractor, tempo, etc.

Besides the above-listed types of policies, there are two other types of policies based on the coverage they provide. These policies are as follows:

  • Liability Only Policy – Also called Third Party Liability Policy, these policies are mandated by the Motor Vehicles Act. The policy covers any financial liability you might incur if your vehicle harms any property or causes bodily injury, including death, to any third party. ‘Third party’ means any person other than you and your vehicle.
  • Comprehensive Policy – These policies are also called package policies and are preferred over Liability Only policies. While Liability Only policies cover only the financial liability with respect to any third party or property, comprehensive policies also cover the financial loss faced due to damages suffered by you and your vehicle. As such, the coverage of comprehensive plans is wider.

Features of motor insurance policies

Some common features of motor insurance plans are as follows:

  • Coverage Amount – The amount of coverage depends on the value of the vehicle. This value is called the Insured Declared Value (IDV) and is the market value of the vehicle adjusted with depreciation. The IDV forms the Sum Insured of the policy and premiums depend on it.
  • Tenure – Most motor insurance plans have a term of one year. However, recent IRDA regulations have allowed two-wheeler insurance plans to be offered for longer terms of 2 or 3 years.
  • Add-on Covers – Optional additional coverage options are available with motor insurance plans. These covers increase the level of coverage and are beneficial. Some popular add-on covers include zero depreciation cover, roadside assistance, return to invoice, passenger cover, medical cover, etc.

Purchase and motor vehicle insurance renewal

You can purchase an insurance policy either from a middleman or directly from the company online. Comparison of different plans is ideal to get the best plan at the best rate. There are premium comparison calculators online which make the job easier.

Motor vehicle insurance renewal is also available online. You can renew motor insurance online at the click of a button. Mahindra Insurance Brokers helps you in both purchase and renewal of your motor insurance policies.

Write us on [email protected] if you have any query.

Motor insurance is compulsory if you own a vehicle. So, find an insurance plan today and insure your vehicle.

Knowledge Center

1. My Car insurance policy expired? What should I do now or what can happen if the policy is not renewed on time?

There is a key difference between the two:

Car insurance is mandatory as per the provisions of the Motor Vehicles Act 1988. So if your car insurance policy has expired or if you have forgotten to renew your policy, it implies that you and your vehicle are not covered under insurance and your insurance company is not liable to pay any claims arising out of accident. Moreover, driving an uninsured vehicle in any public space is illegal under the said Act. In addition, your No Claims Bonus (NCB) will also be forfeited, if the policy is not renewed on time.

Usually most insurance companies send a renewal notice well in advance of policy expiry date. With advancement in technology, you can also set your own car insurance renewal reminder through online alerts, mobile alerts etc.

In case your car insurance policy has expired or if you have not renewed your car insurance policy on time, then you can approach your existing insurance company or your dealer / agent to renew your policy. You can also approach another insurance company for your car insurance, however, you need to fill in a fresh proposal form and the new insurer may ask for a physical inspection of your vehicle. Insurance companies may apply additional loading on premium if policy has expired 45 days earlier.

2. What is No Claim Bonus in Car Insurance ? Can I transfer the NCB to my new vehicle ?

If you do not make a claim during the policy period, a No Claim Bonus (NCB) is offered on renewals. Insurers reward policyholders for not making claims by giving them a discount on the Own Damage (OD) premium up to a maximum of 50%. In other words, it's a discount that you would get after a claim-free year, an incentive for driving carefully and avoiding accidents. However, it should be noted that NCB would be allowed provided the policy is renewed within 90 days of the expiry date of the previous policy. Another moot point is that NCB becomes nil in case a claim is made by the policyholder. In cases where existing vehicle is sold and a new vehicle is purchased, NCB can be utilised within a period of 3 years.

Period of insurance % of NCB on OD premium
2nd year 20%
3rd year 25%
4th year 35%
5th year 45%
6th year 50%

Transfer of NCB to new Vehicle: You can transfer full benefits of your No Claim Bonus (NCB) to your new vehicle provided the new vehicle is also of the same class. You can also transfer full benefits of NCB when you shift your motor insurance policy from one company to another.

3. What do I do if the vehicle is stolen and along with vehicle all my car documents & original policy is lost?

If your vehicle is stolen, report the matter immediately to the insurance company through their call centre or toll-free helpline. Also inform police (FIR) and the Road Transportation Office (RTO) where the vehicle is registered and obtain an acknowledgement from the RTO with details of the theft of your vehicle. Post that, submit the following documents to the insurance company at the earliest to expedite your claim process.

  • Claim form duly
  • RC copy of the vehicle with all original keys
  • Driving license copy
  • Original policy copy
  • Original FIR copy
  • RTO transfer papers duly signed along with Form 28, 29, 30 and Form 35 (if hypothecated)
  • Final report – A no trace report from the police saying that the vehicle cannot be located.

You can request for a duplicate copy of the car insurance policy from your insurance company, which is available at a nominal fee.

Please note: Standard policy terms & conditions applied. Please refer to the quote comparison & detailed policy wording.