Motor Insurance

Every time you hit the road, you trust your vehicle to get you where you need to be, but one unexpected moment can change everything. With rising accident rates, costly repairs, and unpredictable road conditions, having reliable motor insurance is no longer optional; it is essential.

Motor insurance shields you from financial losses due to accidents, theft, natural disasters, and third-party liabilities. It ensures you stay compliant with the law while driving with complete peace of mind. If you want smarter, safer, and stress-free driving, here is everything you need to know about choosing the right motor insurance plans.

Motor insurance is a vehicle insurance policy that is mandatory for all vehicles in India, like trucks, cars, jeeps, bikes, scooters, etc. This policy offers coverage to the vehicle owner/driver against financial losses that may occur due to accidents or other kinds of damage.

Motor insurance plans are the best form of security that you can acquire to prevent significant expenses that result from an accident. The Government also imposes the compulsion to get personal accident cover for the safety of individuals who travel via motor vehicles daily.

No one can deny that buying a vehicle is the second most expensive investment in a person’s life after a home. Thus, protecting the investment against unforeseen events is crucial. Considering the hike in the vehicle repair charges and the risks involved in driving, an unfortunate accident can put a big hole in your pocket.

Not long ago, people had to visit the stores to learn about insurance policies. But with the digitisation of all services, customers can now avail the benefits of buying motor insurance online. It is far better than the traditional method of getting insurance and also presents the simplest way to compare and finalise your decision.

Here are some key benefits of getting motor vehicle insurance online.

Easy Comparison

Instead of visiting multiple stores, you can get quotes from as many motor insurance providers as possible and compare their services and rates without any interference. Most companies provide a detailed explanation for their motor insurance plans, which further makes it possible for customers to contrast the features and benefits in a hassle-free manner.

Time-Saving

No more wasting time to go through the extensive paperwork! Getting an online motor insurance policy requires you to fill in a few details on the website or the mobile application, making the process less hectic.

Secure Transactions

Offline purchase of motor insurance policies involves a lot of paperwork that contains confidential data. Online processing removes that risk, and transactions are done without documentation, making it secure.

Multiple Payment Modes

Most companies offer multiple payment modes to avail cashless transactions and premium payments for the insurance policy. Now you can even get your motor insurance renewal online.

Customisation Option

Customers can opt for any coverage plan and get add-ons on the policy as they want. Moreover, policyholders can learn all about the features and policies of different companies to figure out the best plan.

Transparency

Unlike the conventional ways to get vehicle insurance in India, which were confusing and dealing with motor insurance agents is not necessary now. The agents used to leave out many specifications to convince potential buyers. But with online vehicle insurance coverage, the process is transparent now.

Immediate Policy Issuance

If you buy vehicle insurance online, the time taken for processing all documents is reduced to a few minutes. You can get the policy instantly, and the details you submit will be saved to the insurer.

Convenient

Whether a person needs to be out of the city or has a busy schedule, purchasing their desired motor insurance plans can be done while they are sitting at home or office anytime.

Online Renewal

One appreciable benefit of motor insurance online is that you will stay updated with the policy status and renew the plan on time before it expires.

Types of Motor Insurance on the Basis of Policy

Whether you are buying a private car, a two-wheeler, or a commercial one, the types of motor insurance plans are broadly classified into four categories:

Comprehensive Insurance Policy

Comprehensive motor insurance offers the highest level of protection for your vehicle. It covers both third-party liabilities, such as injury, death, or property damage caused to others, and damage to your own vehicle. Whether your car, commercial vehicles, or two-wheeler is affected by an accident, fire, theft, natural disaster, or even man-made events, such as vandalism, this policy provides financial security. You can also enhance such motor insurance plans with add-ons, such as zero-depreciation cover, engine protection, or roadside assistance.

Third-party Insurance Policy

The third-party motor insurance policy is liability coverage that is uniformly applicable to all vehicles. As per the Motor Vehicles Act of 1988, third-party car insurance and third-party insurance for bikes are compulsory for vehicles plying on Indian roads. Failure to comply with this rule would result in an individual paying hefty fines according to the Motor Amendment Act, 2019.

Standalone Own Damage Car Insurance

Standalone Own Damage insurance focuses solely on safeguarding your own vehicle from unexpected damage. It is a great option for those who already hold a valid third-party policy. If you have a valid third-party cover, you can avail the standalone own damage car insurance for additional protection of your vehicle without committing to a full comprehensive plan.

Pay As You Consume (Usage-Based) Car Insurance

Pay As You Consume insurance is a modern, flexible option designed for those who drive less. Instead of paying a fixed premium, your purchase cost is based on the kilometres you expect to use. If you drive less, you end up paying less. These motor insurance plans are especially beneficial for people who use their vehicle occasionally, work from home, or prefer public transport for daily commuting.

Types of Motor Insurance on the Basis of Vehicle Type

On the basis of what vehicle you own, you can get either of these three motor insurance plans:

Car Insurance

The ideal choice to secure your private four-wheeler is getting car insurance. It is a contract that is drawn between the vehicle owner and the insurance company that covers both a comprehensive policy and third-party liability. With this plan, you will get benefits like:

1. Cashless claims

2. Personal accident cover

3. Loss/damage protection

4. Unlimited liability for third-party injuries and death claims

Two Wheeler Insurance

As the name suggests, two wheeler insurance or bike insurance is meant for scooters, bikes and other two-wheelers. It is a type of vehicle insurance that will ensure a safe ride, as two-wheelers have slightly more risks of personal injuries. The benefits included in the motor insurance plans are:

1. Comprehensive coverage

2. 2/3/5 years of own damage motor insurance

3. No claim bonus protection

Commercial Vehicle Insurance

The risks of damage to commercial vehicles are more than private vehicles. Hence, commercial vehicle insurance allows drivers to reduce the losses that are incurred in unfortunate events. It involves vehicles like tractors, cranes, taxis, goods-carrying vehicles, passenger-carrying vehicles, etc. The benefits will include:

1. Unlimited liability coverage for injury and death claims

2. Personal accident cover for loss and damage protection

You can purchase suitable motor insurance plan that protects all kinds of vehicles in worst-case scenarios. Be it fire, burglary, vandalism, earthquake, flood, storms, or accidents, you can feel secure under all circumstances.

Motor insurance plans from Bajaj General Insurance come with several unique benefits as follows:

The table below provides a clear picture of what the motor insurance plans from Bajaj General Insurance include and exclude:

The table below provides a clear comparison for you to understand the differences between the IRDAI’s 2018 and 2020 regulations regarding motor insurance plans:

Below are the changes or possible changes that most significantly impact the policyholders and their motor insurance plans:

1. No Claim Rejection for “Want of Documents”: Under the IRDAI’s 2024 master circular, insurers cannot reject motor insurance claims just because a policyholder does not have all the documents at claim time.

2. Mandatory Pay-As-You-Drive (PAYD) Option: Insurers must now offer a “pay-as-you-drive” or usage-based motor insurance option, giving policyholders flexibility based on how much they actually drive.

3. Policyholder Information Sheet (CIS): Insurers must provide a clear Customer Information Sheet, making it easier for their retail policyholders to understand key policy terms, benefits, and exclusions.

4. Faster Claims Settlement: The IRDAI has pushed for stricter timelines and more transparent internal claim-settlement procedures for motor insurance to reduce delays and arbitrary rejections.

5. Traffic Violations to Premiums: Recently, a person’s driving habits have strongly impacted their premiums in insurance companies. This includes their traffic violation history.

6. Violation History Retention and Reset: Violation data may be stored for 2 years, and if a vehicle does not commit any violations in that period, its violation history can reset to zero, potentially reducing premium impact.

7. Tiered Premium Increase for Pending Challans: Draft proposals suggest that having more than two unpaid e-challans in a financial year could trigger a 10 to 20% premium hike, based on telematics and violation history.

Documents Required to Buy Vehicle Insurance Online

The documents required to avail of motor insurance plans online are given below.

1. Proof of Identity

2. Proof of Address

3. Driving License

4. Vehicle Registration Certificate

Millions of people own a driver's license, and there is at least one vehicle in the household. Moreover, an increased number of private vehicles also increases the risk of road accidents and rule-breaking. Accounting for such factors, it becomes critical to get comprehensive motor insurance plans. Let us review the primary reasons to buy a comprehensive motor insurance policy.

Legal Requirement

The first reason is, of course, to follow the laws and regulations of the Government. A person should be obliged to buy a motor insurance policy with minimum coverage before taking the vehicle out on the road.

Third-party Damage Coverage

With sufficient coverage, you can pay for the damages that occurred after a collision with a third party. Without motor insurance, you’ll have to pay from your pocket, and an appropriate amount of coverage can take care of such expenses.

Security Against Theft

Theft is one of the most significant threats to a vehicle. But with motor insurance plans protecting you against theft, vandalism, and all man-made harmful activities, so you do not need to worry.

Damage Expense Coverage

Paying outright for vehicle damage repairs will affect your financial condition. However, you can pay for such damages with the insurance, even though the amount is hefty, as long as you have enough coverage.

Insurance against Personal Injuries

Not every vehicle owner is lucky enough to get out of accidents without suffering from injuries. Motor insurance plans pay for all the minor and major injuries that might occur due to accidents.

Parameters That Affect Vehicle Insurance Premium

Here are the parameters that will impact the vehicle insurance premiums on both the short-term and long haul.

Model/Make/Variant

The vehicle’s elemental composition, its type, cubic capacity of the engine, etc., have a direct effect on the motor insurance premium.

Age and Engine Type

Age is related to depreciation value and insured declared value, which decreases the vehicle’s value over time. The engine type, i.e., petrol or diesel, affects the IDV, increasing the motor insurance plans’ premium.

Demographics

Operating a car in the metro area is expensive due to the increased risk of accidents.

Cover

Getting comprehensive coverage will cost you more than standalone third-party liability coverage, which leaves you underinsured.

Add-Ons

Adding security features and cover like zero depreciation, passenger cover, etc., will increase the premium amount.

No Claim Bonus

You get a discount on policy premiums if you don’t raise a claim in the previous policy period under own damage cover.

Deductibles

You get a choice to opt for the voluntary deductible to minimise the motor insurance premiums by contributing a predetermined amount.

Anti-Theft Features

The installation of anti-theft devices certified by ARAI will help you fetch better discounts on motor insurance premiums.

Seller

To reduce the motor insurance premiums, buy a policy from the seller directly instead of going to an agent.

Digital Insurance

Digital-first plan comes with a variety of features at a lower price than the market, for new purchases as well as renewals of the policy any kind of motor insurance plans.

How to Use a Vehicle Insurance Calculator?

Most of the companies use a standard motor insurance calculator to determine the amount of premiums for the chosen coverage. Though different companies follow distinct criteria, we have kept the calculations straightforward and easy to understand. You can use our online calculator by providing us with some necessary information about your needs.

For a new car, you need to provide us with the following information to calculate the motor insurance premiums.

1. Name of the vehicle manufacturer

2. Car model

3. Registration state of the car

4. Manufacture year

5. Car Owner details

To view motor insurance plans for a used car, the vehicle insurance calculator needs slightly variable information given below:

1. Type of car and fuel used

2. Previous car motor insurance plan details

3. Registration Number

4. Change of Ownership documents (if applicable)

5. History of Claims

With these details, we can calculate the best value of premiums for the insurance coverage you wish to buy.

10 Things to Consider While Buying Vehicle Insurance

During the purchase, you need to account for the following factors to get the best motor insurance companies and rates on comprehensive coverage.

1. Coverage: Explore whether you need comprehensive coverage or third-party liability coverage on an urgent basis. In our opinion, it is always better to go with comprehensive vehicle insurance online.

2. Add-Ons: Learn about the add-on features provided by the company and pick the additional coverage that is appropriate in your specific case.

3. Personal Accident Cover: Always account for whether the policy you are buying will cover you in case of personal accidents or not.

4. Claim Procedure: Go through the claim process to figure out how complex the task can be if, at some point, you need to file a claim.

5. Garages: All providers of vehicle insurance in India have a network of garages where vehicle service and repairs are more affordable than local garages. You must consider them as the vehicle will need servicing more frequently as you travel.

6. Zero Depreciation Cover: A car’s value becomes almost half the moment it steps out of the showroom. To maintain the monetary value of the vehicle, you must opt for zero depreciation cover to combat the loss that will result after depreciation.

7. NCB: Find out whether the providers of vehicle insurance in India offer a good No Claim Bonus and other benefits when you need to renew the policy after expiration.

8. IDV: Only reliable insurers will offer you the best market value of the vehicle after deducting the depreciation amount. With this, you can get compensation called Sum Insured in case of theft or total destruction of your vehicle.

9. Policy Document: Never sign any documents without reading and reviewing the policy.Many clauses in the document might confuse you. So, always go through the document carefully and only then finalise the purchase.

10. Premiums: Ask for detailed specifications for how the company calculates the premiums for your motor insurance plans online. Be aware of the factors that play a role and clear your doubts without hesitation.

How to Apply for Vehicle Insurance Online

To make our services better for all our customers, we guide everyone carefully throughout the purchase and renewal of vehicle insurance in India.

Check Vehicle Insurance Status

One of the best reasons to buy motor insurance online is that you can also check the status online. The insurance documents will be accessible online, and you will also get alerts regarding the expiry date.

You can find the start and end dates for the plan in the documents. With our digital-first service, you can log in using your credentials and check the status online. Besides that, you can also call us or drop an email to request the status details. The information will be sent to your number and email address shortly.

Avail Vehicle Insurance Renewal Online via Mobile App

Bajaj General vehicle insurance renewal is also possible via the Mobile app. We have a dedicated mobile application to buy motor insurance plans online that supports all the features of the website and provides a hassle-free way to communicate with the agents.

Enter the app and fill out the online renewal form to provide old policy details. Check the information in the form and make the final payment using a debit card or net banking. The renewed policy document will be generated immediately. Save the document and take a printout whenever you have time.

Motor Insurance Offline Process

The conventional way for motor insurance renewal online is by visiting the branch with all the documents. Offline services are also available for you to buy, make a claim, and more.

The offline process is almost the same, except that you have to provide a physical copy of the documents. Schedule your visit to the nearest branch and buy the policy with suitable coverage by paying through cheque, debit card, or demand draft.

Why is Motor Insurance Mandatory in India?

It is the Motor Vehicle Act that specifies the rules and regulations regarding driving in India. We know that owning motor vehicle insurance is mandatory for all drivers and vehicle owners, considering the number of accidents that take place annually in the country.

What Does the Motor Vehicle Act Specify?

As per the Motor Vehicle Act, all vehicles that operate in public spaces must acquire sufficient motor vehicle coverage without any exception. Any basic motor insurance plans must cover the minimum amount of third-party liability coverage to provide for other people involved in accidents or mishaps.

The primary reason to buy a motor vehicle insurance policy is to eliminate the expense that occurs after accidents. And don’t forget, India is a country where the population is rising unruly. As a result, the number of vehicles is also on the rise. To protect against the threats that arise on the road, vehicle insurance is the best solution.

After the amendment in 1988, it is essential to carry various documents like a driver’s license, vehicle registration document, permits, liability coverage, insurance cover, etc., on the road. And after recent changes, failure to fulfil these obligations will lead to fines and penalties worth ₹2,000 to ₹4,000, with additional penalties that involve imprisonment and community work.

Importance of Motor Insurance Renewal

You might not believe it, but according to a survey, 60% of vehicles on roads in India are operating without valid insurance. And that’s because people don’t understand the importance of motor insurance renewal.

Below are a few reasons why motor insurance renewal is necessary:

No Financial Backups

Renewing your policy the day before expiration will ensure that you don’t face any challenges during the claim process. In case any major accident takes place after policy lapse, you won’t have any backup to pay for repairs or deal with medical expenses.

Keep Insurance Premiums Moderate

Your application for acquiring vehicle insurance can be rejected if the policy isn’t renewed within a specific period. And even if the application is accepted, you will have to pay a hefty premium. All of this can be avoided by renewing the insurance on time.

Save with No Claim Bonus

The No Claim Bonus is offered only to policyholders of motor insurance plans who renew their insurance plans on time. If you let the policy expire, the discount that is highly beneficial for vehicle owners will be nullified, and you will have to pay big size insurance premiums.

Easy Inspection for Renewal

Companies follow a standard procedure for vehicle insurance renewal, which involves an inspection to assess your vehicle's condition. With the assessment, you can determine how much insurance coverage you need to buy, saving you a lot at times.

Quick & Hassle-Free Renewal

Not renewing the policy results in rejection from insurers to get motor insurance plans in the future. You must get vehicle insurance renewal on time to prevent the hassle of looking for a new insurance provider. And trust us, searching for a provider that fits your budget after a lapse is very challenging.

Basis of Arriving at Insured Declared Value (IDV) of the Insured Vehicle

The Insured’s Declared Value (IDV) of a vehicle is referred to as its ‘Sum Insured’, and it is fixed at the commencement of each policy period for each insured vehicle. The IDV of the vehicle (and accessories, if any, fitted to the vehicle) is fixed on the basis of the manufacturer’s listed selling price of the brand and model of the insured vehicle at the commencement of the motor insurance plans.

In simple terms,

1. IDV is the current market value of your vehicle.

2. It is calculated after deducting depreciation from the manufacturer’s listed price.

3. Depreciation depends on the vehicle’s age.

4. Accessories not fitted by the manufacturer are added separately.

5. IDV influences your premium and maximum claim payout.

The Schedule of Depreciation For Fixing IDV of the Vehicle

The IDV shall change according to the depreciation grid below for each block of one year within the policy period.

1. The IDV arrived as per the above method may be further adjusted basis various factors such as location, make and model, etc, with agreement of the Insured and as captured in the Policy Schedule.

2. The age-wise depreciation schedule shown above is applicable only for Total Loss/Constructive Total Loss (TL/CTL)/Cash Loss claims.

3. IDV of vehicles beyond 5 years of age and for obsolete models (i.e. models that manufacturers have discontinued) is to be determined on the basis of mutual agreement between the Insurer and the Insured.

4. IDV shall be treated as the Market Value throughout the Policy Period without any further depreciation for the purpose of Total Loss (TL)/Constructive Total Loss (CTL)/Cash loss claims.

Basis of Arriving at Total Loss (TL)/Constructive Total Loss (CTL) of the Insured Vehicle

Below are three conditions that usually govern the basis of arriving at the TL or CTL of any insured vehicle as per all motor insurance plans:

1. The insured vehicle shall be treated as a CTL if the aggregate cost of retrieval and/or repair of the vehicle exceeds 75% of the IDV of the vehicle, subject to the terms and conditions of the policy.

2. The liability of the Company shall not exceed the Insured's Declared Value (IDV) of the vehicle in the event of total loss/ constructive total loss/cash loss for the year in which the loss has occurred. IDV as on the date of loss shall be computed as specified under the basis of arriving at the Insured Declared Value (IDV).

3. If a damaged motor vehicle is assessed as being unrepairable and hence a wreck i.e. a ‘total loss’ or ‘write-off’, You shall have the option to retain the wreck and accept a ‘cash loss’ settlement (being the IDV less the assessed value of Salvage based on competitive quotes procured by the Insurer including any submitted by or through the Policyholder).

Note: For the purpose of computation, TL (Total Loss)/CTL (Constructive Total Loss) of the Insured Vehicle aggregate cost of retrieval shall mean the Company’s aggregate liability as per the terms and conditions of the policy.