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Frequently asked questions


1. What is a third party risk policy?

A third party risk policy is a mandatory insurance policy that covers the vehicle owners against risks as per Section 146 of Motor Vehicles Act 1988. The scope of the cover of the third party insurance is to pay compensation for the damage caused to the property of the third party and death due to bodily injuries to the third parties. This does not include damage of your own vehicle.

2.What is NCB? Under what circumstances is NCB applicable and how does it benefit the vehicle owner?

NCB is the short form of No Claim Bonus; it is rewarded to the owner of the vehicle who is also the policy holder for No Claim / Claims in the previous policy year. It can be accumulated over a period of time.

If you have NCB you can avail a discount ranging from 20-50% on the Own Damage Premium.

NCB rewards you for being a good driver and helps you save on your motor insurance premium. The chart here illustrates the discount on Own Damage Premium on account of no claims for 6 consecutive years.

20% discount on OD Premium No claim made or pending during the preceding full year of insurance
25% discount on OD Premium No claim made or pending during the preceding 2 consecutive years of insurance
35% discount on OD Premium No claim made or pending during the preceding 3 consecutive years of insurance
45% discount on OD Premium No claim made or pending during the preceding 4 consecutive years of insurance
50% discount on OD Premium No claim made or pending during the preceding 5 consecutive years of insurance

Please note:

  • NCB becomes Nil in case of a claim
  • NCB follows the fortune of the customer and not the vehicle
  • NCB can be transferred to the new vehicle in case of substitution of vehicle of the same class
  • Validity - 90 days from the date of expiry of the policy
  • NCB can be utilized within 3 years (where the existing vehicle is sold and a new vehicle is purchased)
  • NCB recovery can be done in case of a name transfer
3. Should I make small claims?

It is usually not advisable to make claims that are less than Rs. 2000/- since it is less than the NCB you would bear in the corresponding year which is Rs. 2251 (Rs. 11357 – Rs. 9006). What is advisable is that when your car gets damaged, get an estimate for the repairs. If the No Claim Bonus you stand to forfeit in the forthcoming year exceeds the estimate, it makes sense not to raise a claim and instead pay for the damage yourself.

4. How can I reduce the insurance premium for my car?

You can reduce your motor insurance premium when you maintain a claim free record as the No Claim Bonus which you accumulate and get it translated into discount on the Own Damage Premium.

Another way of reducing cost of premium is opting for voluntary excess, which means opting to bear a certain amount of loss from each claim.

5. What if I have to make changes / endorsement in the policy?

An endorsement is a written evidence of an agreed change to your policy. It is a document that incorporates changes in the terms of the policy. Any changes or alterations that you need to make can be done by way of an endorsement.

An endorsement may be issued at the time of issuing the policy to provide additional benefits and cover (e.g. legal liability to driver) or to impose restrictions (e.g. accidental damage deductible).

The wordings of those endorsements are provided by the insurance company. An endorsement may also be issued subsequently to record changes such as change of address, change of name, change of vehicle etc. at the time of renewal or if and when there's any changes in the address, name or vehicle. The customer needs to contact their local office for the same

What does my Bajaj Allianz motor insurance policy cover?

Bajaj Allianz offers package policies covers which are designed to offer protection to you and your vehicle. The policy comprises of the following:-

a) Damage to your vehicle - The policy covers you against any loss or damage caused to your vehicle or its accessories due to natural and manmade calamities as defined in the scope of coverage:-

What is covered Exclusions
Accidents & external damage Wear & tear, depreciation, mechanical or electrical breakdown
Fire & explosion Consequential loss
Riots & strikes A voluntary excess (if opted)
Malicious act Other exclusions as per the policy
Burglary / housebreaking / theft Driving without valid driving license
Transit The vehicle being driven by a person under the influence of alcohol or drugs at the time of the loss
Earthquake  
Storm and flood  

b) Third party legal liability - The policy covers the vehicle owner's legal liability to pay compensation for:-

What is covered Exclusions
Legal protection for death or injury claims from third parties, including occupants of your vehicle Damage to your personal property
Costs and expenses incurred without the prior written consent of Bajaj Allianz Legal protection for damage to third party property
Personal accident benefits for you, your paid driver and occupants of your vehicle Legal costs and expenses
  Other exclusions as per the policy
  Protection of your legal liability towards your paid driver

Liability is covered for an unlimited amount with respect to death or injury and damage to third party property for up to Rs.7.5 lakhs under commercial and private car.

c) Personal accident cover to driver (owner) - The policy provides compulsory personal accident cover for owner / driver of the vehicle for up to Rs.2 lakhs for a premium of Rs.100.

2. What is a third party risk policy?

It is mandatory for every motor vehicle owner to get a third party insurance cover. It covers the vehicle owners against Act Risks as per Section 146 of Motor Vehicles Act 1988. The scope of cover of the third party insurance is to pay compensation for death due to bodily injuries to third parties and also damage caused to the property of the third party excluding damage of your vehicle.

3. Can I cover electrical and non electrical items fitted in my vehicle?

Yes,

  • Electrical / Electronic fittings in the vehicle such as fog lights fog lights, music system, AC (if not as a standard fitment), spoilers with brake light (4% of the value of the accessory)
  • Non-electrical fittings - such as mag wheels, seat cover, non-electrical spoiler etc. are covered as per own damage tariff on the value of such accessories
  • CNG Kit and Bi-Fuel system (as endorsed in the RC book) - Insured at an additional premium of appropriate loading on the value of such kit
4. Are the tyres and tubes of my vehicle covered against any damage?

Any damage to tyres and tubes is not covered unless the vehicle is also damaged at the same time and the liability of the insurer will be restricted to 50% of the cost of replacement.

5. Is my vehicle covered for all purposes other than personal and business use?

Using the vehicle for hire or reward, carriage of goods other than samples, racing or other race related purposes and motor trade purposes is not covered.

6. What are the additional personal accidents cover for passengers and the driver?

The additional personal accidents cover for passengers and the driver are:

  • Personal accidents riders / unnamed hirers and paid driver for a max of Rs.2 lakhs per person
  • Personal accident cover to paid drivers
  • Legal liability to the paid driver employed in connection with the operation of the insured private vehicle
  • Legal liability towards your insured employees other than paid driver who may be driving or travelling in the vehicle
1. What is NCB and under what circumstances is it applicable and how does it benefit the vehicle owner?

NCB is the short form of No Claim Bonus; it is rewarded to the owner of the vehicle who is also the policy holder for No Claim / Claims in the previous policy year. It can be accumulated over a period of time

If you have NCB you can avail a discount ranging from 20-50% on the Own Damage Premium.

NCB rewards you for being a good driver and helps you save on your motor insurance. The chart here illustrates the discount on Own Damage Premium on account of no claims for the consecutive years.

20% discount on OD Premium No claim made or pending during the preceding full year of insurance
25% discount on OD Premium No claim made or pending during the preceding 2 consecutive years of insurance
35% discount on OD Premium No claim made or pending during the preceding 3 consecutive years of insurance
45% discount on OD Premium No claim made or pending during the preceding 4 consecutive years of insurance
50% discount on OD Premium No claim made or pending during the preceding 5 consecutive years of insurance

Please note

  • NCB becomes Nil in case of a claim
  • NCB follows the fortune of the customer and not the vehicle
  • NCB can be transferred to the new vehicle in case of substitution of vehicle of the same class
  • Validity - 90 days from the date of expiry of the policy
  • NCB can be utilized within 3 years (where the existing vehicle is sold and a new vehicle is purchased)
  • NCB recovery can be done in case of a name transfer
2. How does No Claim Bonus help me?

No Claim Bonus is a great way to progressively reduce your insurance premium. For example, the below table shows the premium payable towards a Maruti Wagon R costing Rs.3.6 lakhs, over six years in following scenarios:-

Scenario 1: When no claim is made and the No Claim Bonus is earned, as applicable.

Scenario 2: When a claim is made every year.

IDV Scenario 1 (With NCB) Scenario 2 (Without NCB)
Year Value in Rs. NCB % Premium NCB % Premium
Year 1 360000 0 11,257 0 11,257
Year 2 300000 20 9,006 0 11,257
Year 3 250000 25 7,036 0 9,771
Year 4 220000 35 5,081 0 9,287
Year 5 200000 45 3,784 0 9,068
Year 6 180000 50 2,814 0 8,443

If you are carrying forward a No Claim Bonus on any vehicle, you can get it transferred to a new vehicle of the same type (four-wheeler to four-wheeler, two-wheeler to two-wheeler).

This way, you can slash between 20% and 50% on the first premium payable (when it is the highest) on your new car or two-wheeler.

E.g. you buy a new Honda City, costing Rs.7.7 lakhs. In normal circumstances, the Own Damage Premium payable towards its insurance for the first year would be Rs.25, 279. However, if you were to transfer the 50% No Claim Bonus (the best case scenario) on your old car to the Honda City, you would pay Rs.12,639 as Own Damage Premium in the first year which results in 50% savings.

3. Can my No Claim Bonus be forfeited? If yes, then why?

Your NCB will be forfeited in the following cases only:

  • If the claim is made during a policy period you will not be eligible for any NCB in the corresponding year
  • If there is a break in the insurance period for more than 90 days, i.e. if you do not insure within 90 days of the date of expiry on your existing policy
4. Should I make small claims?

It sometimes makes sense not to make small claims. Ideally, whenever your vehicle is damaged, get an estimate for the repairs. If the No Claim Bonus you stand to forfeit in the forthcoming year exceeds the estimate, it makes sense not to raise a claim and instead pay for the damage yourself. For example, if your vehicle met with an accident on the 1st year itself and the estimate comes to Rs.2000, you should not make a claim as it is less than the NCB you will bear in the corresponding year which is Rs.2251 (Rs.11257- Rs.9006).

5. Can I transfer the NCB from an old vehicle to a new vehicle?

You can transfer the NCB from your old vehicle to a new one for the same class and type of vehicle

To transfer, keep the following in mind:

  • When you sell your old vehicle ensure that ownership is transferred and make a photocopy of the new entry in the RC book for insurance purposes
  • Obtain the NCB certificate. Forward a copy of the delivery note to your insurance company and ask for the NCB certificate or holding letter. This letter is valid for three years
  • When you buy a new vehicle get the NCB transferred to your new vehicle policy
6. I want to renew with Bajaj Allianz General Insurance, will I be eligible for NCB if last year I had my vehicle insured from another company?

Yes, you would be eligible provided you do not have a claim in the expiring policy.

You can transfer full benefits of No Claim Bonus when you shift your policy from another company to Bajaj Allianz General Insurance.

1. What is meant by IDV?

IDV means Insured's Declared Value. It is the current market value of your car or two wheeler.

IDV is arrived at by adjusting the current manufacturer's listed selling price* of the vehicle with depreciation percentage listed in the table below:-

VEHICLE % OF DEPRECIATION
Not exceeding 6 months 5%
Exceeding 6 months but not exceeding 1 year 15%
Exceeding 1 year but not exceeding 2 years 20%
Exceeding 2 years but not exceeding 3 years 30%
Exceeding 3 years but not exceeding 4 years 40%
Exceeding 4 years but not exceeding 5 years 50%

For car and two wheeler models that are obsolete and aged over 5 years, the IDV will be the value agreed between Bajaj Allianz General Insurance (insurer) and you (insured).

*Manufacturer's listed Selling Price = (Cost Price + Local Duties) / Taxes, excluding Registration and Insurance.

2. Do I get some discount on premium if I have installed anti-lock system and anti-theft alarm?

Yes, you get additional discount in case your vehicle is fitted with anti theft devices, approved by the Automobile Research Association of India (ARAI).

The amount of discount is usually 2.5% of the premium to a maximum of Rs.500.

3. What is voluntary excess?

Voluntary excess is your option to opt for bearing a certain amount of loss from every claim. For this option, you are eligible for a discount on Own Damage Premium (ODP) as listed in the table below:

VOLUNTARY DEDUCTIBLE DISCOUNT
Rs.2500 20% on the OD Premium of the vehicle, subject to a maximum of Rs.750/-
Rs.5000 25% on the OD Premium of the vehicle, subject to a maximum of Rs.1500/-
Rs.7500 30% on the OD Premium of the vehicle, subject to a maximum of Rs.2000/-
Rs.15000 35% on the OD Premium of the vehicle, subject to a maximum of Rs.2500/-
4. How can I reduce insurance premium for my car and two wheeler?

You can save on your insurance premium for your car and two wheeler when you maintain a claim free record as the No Claim Bonus which you accumulate and get it translated into discount on the Own Damage Premium.

In case you have installed an anti theft device in your car, which is approved by the Automotive Research Association of India, then a discount of up to Rs.500 can be availed.

Another way of reducing cost of insurance premium is opting for voluntary excess, which means opting to bear a certain amount of loss from each claim.

5. What is compulsory excess?

Compulsory excess is the amount of loss that has to be borne out by the insured for each and every claim. It is levied as mentioned in the table below:-

TYPE OF VEHICLES COMPULSORY DEDUCTIBLE
Private vehicles not exceeding 1500cc Rs.1000/-
Private vehicles exceeding 1500cc Rs.2000/-
Motorized two wheelers Rs.100/-
1. Why should I buy / renew my motor insurance policy at www.bajajallianz.com?

Buying an insurance policy for car and two wheeler online is easy, secure and fast. What's more? You also make savings on your car and two wheeler insurance when you buy online. Some other benefits are:

  • No paperwork is required to buy your insurance policy online
  • Instant policy issuance ensures that the digitally signed policy is available 24X7 online so that you can take the prints instantly. The hard copy of the policy will be couriered to you within seven working days
  • Multiple payment options via Credit Card, Debit Card or Net Banking
  • 0% EMI option, pay online through ICICI Bank, Citibank & HDFC Bank Credit Card
  • Highest levels of security.
2. For how long is my motor insurance policy valid?

Your motor insurance policy cover remains in force for 12 months from the date of commencement (or as otherwise shown on your policy schedule).

3. What is a cover note?

A cover note is a temporary certificate of insurance issued by the insurer before the issuance of a policy, after the insured has given a duly filled in proposal form and has paid the premium in full.

A cover note is valid for a period of 60 days from the date of issue of the cover note and the insurer will issue the certificate of insurance before the cover note expires.

4. What if I have to make changes / endorsement in the policy?

An endorsement is a written evidence of an agreed change to your policy. It is a document that incorporates changes in the terms of the policy. Any changes or alterations that you need to make can be done by way of an endorsement.

An endorsement may be issued at the time of issuing the policy to provide additional benefits and cover (e.g. legal liability to driver) or to impose restrictions (e.g. accidental damage deductible).

The wordings of those endorsements are provided by the insurance company. An endorsement may also be issued subsequently to record changes such as change of address, change of name and change of car or two wheeler model.

5. What if at the time of accident my vehicle is being driven by some one else?

Liability follows the vehicle. So, the insurance on the vehicle will apply even in the case of it being driven by some other person with your permission. Usually, the liability insurance of the person driving the vehicle will have to pay in the case the amount of the loss exhausts your policy's limits.

6. What happens if I change my car or two wheeler in middle of the year?

Please call our Toll Free Number - 1800 209 5858 and our customer support executive will update your policy according to our underwriting guidelines.

7. I am selling my car. Can I transfer my policy to the new owner?

If you sell your car or two wheeler to another person, the insurance can be transferred in the name of the buyer. The buyer (transferee) has to apply for transfer of insurance with us, within 14 days from the date of transfer of the car in his name and after making the payment of endorsement premium for the remaining period of the policy.