The insurance industry across India accounted for a gross premium of Rs. 5.53 trillion for FY 2018, of which Rs. 1.51 trillion was rooted at the non-life insurance end. While the gross direct premiums in case of non-life insurers, witnessed a YoY growth of 12.40%, these numbers have touched Rs. 962 billion in FY 2019.

Subsequently, the increasing penetration of high-end vehicles and escalated cases of road accidents resulted in an increased purchasing and renewal of car insurance policy. Catering to this, the vehicle insurance sector in India is predicted to touch $17.4 billion in 2025.

In case of mandatory insurance plans like that of car insurance in India, the provisions provided by insurance companies cater to the benefits of the potential insured individuals. Subsequently, individuals in case of renewal of insurance policies look ahead to shifting to financers who offer the most benefits.

Factors to look for while renewing car insurance policy

Considering that motor insurance policy is not an option, but mandated by law, multiple insurance companies now offer these insurance covers. While the minimum level of vehicle insurance policy stretches to third-party liability insurance cover, a comprehensive plan is often favoured considering that it is offers coverage for both the vehicle and its owner.

Following up with the diversity of options that individuals have while renewing their policy, there are a few factors that they need to look for prior to settling upon a cover –

1. Look for no claim bonus

The renewal of car insurance policy covers offers policyholders with the provision to shift their insurance account to a company that provides better features and benefits. Utilising this provision, insured individuals need to look out for companies that offer the No Claim Bonus or NCB. It is an incentive provided by car insurance companies to encourage safe driving that converts to no claims of the insurance amount. Such NCB’s come with multiple lucrative features like –

• It can be accumulated over the years to get a 50% discount on the premium.
• It is transferable from one company to another.
• It is only available on the renewal of the car insurance online policy cover.

2. Decide upon a suitable insurance plan

There are two types of insurances available in the market –

• Third party car insurance – Offers financial coverage for the damage caused by your vehicle to other people’s vehicle or property. However, the insured individual or car is not extended such benefits.
• ●       Comprehensive insurance – Along with the benefits of third party insurance, extensive financial coverage for damages caused to an insured vehicle on account of theft, collision, or hailstorm can be availed as well. An insured individual can also claim compensation in case of road accidents respectively.

Look into the fine print of the insurance cover and settle upon one that caters to your financial requirements.

3. Look into the necessary add-ons available

Considering that individuals are looking to renew their insurance policies, it is ideally imperative that they look around for add-on plans that match their requirements. In case of Car Insurance policy provided by Bajaj Finserv, insured individuals have a provision to choose their add-ons from variants including –

• Key replacement cover.
• Road trip cover.
• Holiday cover, etc.

Such add-ons offer individuals with the facility to personalise their policy cover as per their financial and insurance requirements.

Apart from the factors mentioned above, before the renewal of insurance policy covers, individuals also need to look into the availability of the cashless facility. It would bring in the convenience of paying for unplanned bills and will be followed by the reimbursement from the insurance company.

Considering the obligatory requirement of a car insurance policy, the ideal choice would be the one that ensures considerable coverage and savings. Also, make sure to look for plans that offer exclusive online discounts during the renewal process.