Best 6 Car Insurance Companies in India

Introduction

 

The new year has begun. The new year is when people set life-changing resolutions and construct a wishlist of things they want to accomplish in 2022. 

 

If purchasing a car is on your wishlist this year, it is critical to understand car insurance and the major car insurance firms in India, in addition to understanding the finest automobiles on Indian roads. 

 

Purchasing auto insurance is not an option but rather a legal requirement that must be followed. Every automobile owner in India is required by law to obtain legal third-party car insurance, according to the Indian Motor Act. 

 

Automobiles are no longer considered luxury items. Because of the lower-priced automotive models on the market now, almost anybody can buy a car. 

 

The significance of a comfortable commute has risen, and due to this, a rising number of individuals are purchasing a car for themselves and their families.

 

Type of Car Insurance Policies in India

 

1. Comprehensive Policy

 

As the name implies, comprehensive coverage provides total protection against losses to both parties involved in an accident. The system is all-inclusive, covering vehicle damage, theft, third-party responsibility, and accident insurance. 

 

The policy coverage may be enhanced further by purchasing add-ons such as accessories cover, engine protection, zero depreciation cover, medical expenditures, and so on. This plan is popular because it gives end-to-end coverage, which alleviates the policyholder's concerns.

 

2. Third-Party Policy

 

Third-party automobile insurance protects you against any legal liability to a third party caused by your negligence. It protects the insured against any harm or injury caused by the insured to another person or property. 

 

The Motor Vehicles Act of 1988 makes third-party liability insurance essential in India. There is no defined limit on liability coverage for third-party injuries or death. However, liability coverage for third-party property damage is limited to Rs.7.5 lakh.

 

(Must read: Insurance Regulatory and Development Authority)

 

 

Car Insurance Companies in India

 

1. HDFC Ergo General Insurance Company Limited

 

HDFC ERGO is a partnership between HDFC and ERGO International AG, one of the Munich Re Group's insurance organisations in Germany that operates in the insurance area within the BFSI sector. 

 

The company's goods are available in the retail, corporate, and rural markets. The retail sector's goods include health, automobile, travel, house, personal accident, and cybersecurity insurance. 

 

Liability, marine, and property insurance are examples of corporate goods. Crop insurance and animal insurance are provided by the rural sector to farmers.

 

• The firm has a significant client base of over 1 crore policyholders, indicating that the company has a high level of confidence.

• The organisation provides overnight auto repair services, in which the repairs are completed in a single night and the car is brought to your home.

• The firm provides claim approvals within 30 minutes via online verification of QR codes, making claim settlements faster.

 

2. TATA AIG General Insurance Company Limited

 

Tata AIG General Insurance Company, which began operations in India on January 22, 2001, offers insurance to both people and corporations. It provides a variety of general insurance products such as car, home, personal accident, travel, energy, marine, property and casualty insurance, as well as specialized financial lines. 

 

The goods of the firm are offered through distribution channels such as agents, brokers, banks (through bank assurance tie-ups), and direct channels such as telemarketing, digital marketing, workplace, and so on.

 

• With its comprehensive auto insurance plans, the firm provides a variety of add-ons that allow you to broaden the extent of coverage.

• The firm's claims payment system is swift and easy.

 

3. Bajaj Allianz Car Insurance

 

A comprehensive automobile insurance policy is required to provide all-around protection to the parties involved in an accident. The premiums for this type of coverage are higher than those for a third-party insurance plan. 

 

The insurance provider is obligated to cover damages to the automobile caused by an accident, rioting, animal attacks, flinging items at high speeds, or loss due to theft under this type of insurance coverage. 

 

This insurance also covers third-party liability coverage as well as personal accident coverage.

 

• The company's auto insurance coverage may be purchased in 3 minutes.

• The company's automobile insurance policies include the Motor On-The-Spot function, which allows you to make rapid claims using your smartphone. Small disputes can thus be handled in 20-30 minutes.

• The firm has a 98% claim settlement ratio.

 

4. ICICI Lombard GIC Ltd

 

ICICI Bank Limited formed a joint venture with Fairfax Financial Holdings Limited to form ICICI Lombard GIC Ltd. 

 

ICICI auto insurance coverage covers loss or damage to your vehicle against natural disasters, loss or damage to your vehicle against man-made calamities, personal accident cover, and third-party legal responsibility, with over 3,500 network garages across the nation. 

 

ICICI Lombard GIC Ltd. provides everything from an emergency battery jump start service and towing to basic repairs like repairing a broken tyre. ICICI Auto Insurance is one of the biggest car insurance providers. 

 

They are also recognised for their straightforward, hassle-free claim system.

 

• The Claim Settlement Ratio of the firm is high. 93.14% of the company's automobile insurance claims were settled during the fiscal year 2019.

• The disputes are resolved as quickly as feasible. In 2019, 93.14% of claims were paid within 30 minutes of notification.

• The firm received the Indian Insurance Award for 'Claim Leader – General Insurance.

 

5. United India Insurance Company Ltd

 

United India Insurance Firm Ltd., founded in 1938, is a nationalised, government-owned insurance company. They provide insurance for personal automobiles, two-wheelers, and business vehicles.

 

They provide a variety of automobile insurance coverage. Customers can even tailor these programmes to their own needs. They are well-known for treating their consumers well, as seen by their discount programme. 

 

Customers can also receive a No Claim Bonus ranging from 20% to 50%, based on the number of claim-free years. They also provide a discount for automotive association membership, a discount for anti-theft equipment, and a discount for using automobiles on the insured's premises.

 

• The firm is a public limited corporation controlled by the Government of India, and policyholders have a high level of faith in it.

• Currently, the firm has over 1 crore policyholders.

 

6. The Oriental Insurance Company Ltd

 

The Oriental Insurance Company Ltd. was established in 1947. They provide car insurance that covers accidental damages, third-party liabilities, and a variety of add-ons. 

 

The Oriental Insurance Company Ltd. provides supplemental coverages such as zero depreciation cover, loss of personal goods, substitute automobile benefits, and free emergency benefit services with a one-year insurance coverage duration. 

 

You may learn more about this auto insurance coverage by going to their website. You may also purchase or renew your automobile insurance coverage online.

 

• It is owned by the Ministry of Finance, Government of India.

• The company's headquarters are located in New Delhi.

• It operates over 1800 operational branches and has 31 regional offices around the nation.

 

 

Importance of Car Insurance in India

 

Risk covers, such as vehicle insurance, are designed to protect us from unanticipated occurrences and obligations. Anyone can become stranded on the road with their automobile following an accident, engine breakdown due to weather, or vehicle theft. In any of these scenarios, having vehicle insurance coverage will come in handy.

 

Several times, we encounter rookie drivers who speed up their automobiles and wreak unimaginable damage, culminating in fatalities. Such irreparable wounds make us consider the necessity and significance of car insurance.

 

(Read:- Future of Insurance with AI)

 

In the last, God's gift of life is priceless. We must make it really safe for our family. Accidents on the road may ruin anyone's life. Car insurance makes sense but it may not seem essential. Nonetheless, many people are hesitant to purchase it without first analysing its feature set. But it's better to be late than never.

 

(Learn about Different Types of Insurances)