Make sure that your car has a valid insurance cover. As per the rulebook no motor vehicle can be driven without a valid insurance.

Although the legal requirement is met by having the vehicle covered for a minimum "Act Only' risk - Motor Policy 'A" (also known as third party risk), it is sensible to have your car covered by a comprehensive insurance policy.

For private vehicles and cars, the 'Act Only Policy' covers third party property damages only upto Rs.6000/-. Fire and Theft risk can be covered by paying additionalpremium

• Third party cover.
• Loss / damage to vehicle as a result of an accident, fire or theft.
• Risks against floods, earthquake, riots and strikes.
• Accessories like music systems, air-conditioner, etc. can also be covered by paying additional premium.
• Risk of loss/damage while in transit by road, rail, water-craft, air, elevator, etc.

The insurance policy becomes effective from the moment the payment of premium is received by the insurance company, and ends at midnight, exactly a year later (valid for one year).

You can obtain an insurance policy by paying the premium to an insurance agent or a development officer of the insurance company (by cheque). The premium amount is calculated based on the cars value, the engine power, its seating capacity, and the value of other accessories like the air-conditioner.

The policy has to be renewed within the period of validity. Any delay in renewal of the policy renders the policy invalid and driving your car becomes an offence. To renew the policy after its expiry, the vehicle has to be taken for inspection to the insurance company's office.

You are eligible for a discount in the premium of a comprehensive insurance policy at the following rate:
@ 20% for the first year.
@ 35% for 2nd year.
@ 50% for 3rd year.
@ 65% for 4th year. (Maximum)

The value of this discount is based upon the insurance claims you have made in that year.
This discount is adjusted against renewal premium. You can avail the no claim bonus when you renew your policy. If your policy expires, then you can still avail the no claim bonus if you renew the policy within 90 days of its expiry. Subsequent to this period you cannot get the benefit and have to pay full premium.

Incase you are buying a new car, then you can transfer the no claim bonus from the policy of your old car to the new one.

When you sell your car you need to intimate the insurance company. You are eligible for the no claim bonus, which is adjusted against the premium of a new car, if the purchase is made within a period of three years.

In case you purchase a used car, you can transfer the existing insurance policy to your name by informing the insurance company within 14 days from purchasing the car.

Minor accidents while driving on city streets are common. Unlike earlier days when a car could be repaired by a few measured blows of a hammer, at the streetside tin shop, today's car is best repaired at the authorised workshop of the manufacturer. The authorised workshop is best suited to decide whether the part damaged is repairable or needs replacement. Insurance companies also appear to favor them, as the authorised workshops have standardized costs for repairs, replacement and labor.

Newer cars come with bumpers and body panels that cannot be repaired easily and are best replaced, because the cost involved in repairing these parts to perfection is the same as the cost of replacing them.

Intimate the insurance company about the accident.
You should send a letter to the insurance company officer informing him about the time, place and a brief description of the accident.

1. Submit the claim form along with the original estimate of repairs obtained from the workshop.
   (The claim form can be obtained from the insurance company's office. The estimate of repairs will be handed over to you by the workshop where you want your car to be repaired.)
   
   
2. Police F.I.R. (report)
   
   
3. Photocopy of car registration certificate (RC Book), driving licence, insurance policy.
   (You need to produce the above documents in original for verification by the insurance company.)
   
   

On submission of these documents the insurance company appoints a surveyor, who inspects the damaged car and verifies the authenticity of the estimate of repairs. The car can be repaired only after the insurance surveyor has inspected it.

The insurance company considers the full value for all parts glass, rubber, metal and labour charges. (Earlier the cost of rubber and plastic parts were calculated at depreciated value)

4. Submit the final bill for damaged parts that have been replaced and the stamped receipt for payment made to the workshop.
   Once the car has been repaired, you need to make the payment as per the final estimate and submit the final estimate and stamped receipt to the insurance company for settlement of the claim.
   The repaired car is surveyed again by an insurance surveyor and only then you can take delivery of your car.
   

Usually smaller claims are processed within a period of 2 weeks. Bigger claims involve more procedures at the insurance company's office and thus take longer.

The procedures involved in claiming insurance are not complicated and cumbersome, as many people perceive them to be. Timely action and awareness about procedures can help you get what your policy promises you, faster.

Incase of serious accidents where your car has been declared a total loss by the insurance surveyor, you need to submit the original RC Book, Duplicate key, NOC from the RTO regarding transfer of the car in the name of insurance company (Complete set of RTO forms required for transfer of ownership), and a letter of indemnity and subrogation, to the insurance company.

If your car is stolen, you need to inform about the same to the nearest police station and your Insurance Company immediately. You also have to intimate about the stolen car and missing documents to the concerned registering authority where the car was initially registered. Obtain a duplicate RC Book from the RTO office immediately

In case of thefts the settlement of Insurance claim takes longer as the RTO and the police is given a reasonable period of time to recover the stolen vehicle.