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Car Insurance

Motor Insurance

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Factors Affecting Private Car Insurance Rating

The premium rating is based on the following factors:

  • Insured’s Declared Value (IDV) of the vehicle
  • Cubic capacity
  • Geographical zones
  • Age of the vehicle/ Registration Date
  • No Claim Bonus

The geographical zones are:

Zone A: Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi & Pune

Zone B: Rest of India

Factors Effecting Two Wheeler Insurance Rating:

The premium rating is based on the following factors:

  • Insured’s Declared Value (IDV) of the vehicle
  • Cubic capacity
  • Geographical zones
  • Age of the vehicle/ Registration Date

The geographical zones are:

Zone A: Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi & Pune

Zone B: Rest of India

  1. 1.Private Carrier
  2. 2.Public Carrier
  3. 3.Three Wheeler

Factors Effecting Rating- PCCV up to 6 passenger capacity:

The premium rating is based on the following factors:

  • Insured’s Declared Value (IDV) of the vehicle
  • Seating capacity
  • Geographical zones
  • Age of the vehicle

The geographical zones are:

Zone A: A Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi & Pune

Zone B: Rest of India

Zone C: Rest of the country

Factors Effecting Rating PCCV 4 wheelers exceeding 6 passenger capacity:

The premium rating is based on the following factors:

  • Insured’s Declared Value (IDV) of the vehicle
  • Seating capacity
  • Geographical zones
  • Age of the vehicle

The geographical zones are:

Zone A: Metro cities - Chennai, Kolkata, Mumbai, New Delhi

Zone B: State capitals

Zone C: Rest of the country

Factors Affecting Commercial Vehicle Insurance Rating- GCCV:

The premium rating is based on the following factors:

  • Insured’s Declared Value (IDV) of the vehicle
  • Gross Vehicle Weight (GVW)
  • Geographical zones
  • Age of the vehicle

The geographical zones are:

 

Zone A: Metro cities - Chennai, Kolkata, Mumbai, New Delhi

Zone B: State capitals

Zone C: Rest of the country

Own Damage Coverage:

Chola MS Own Damage Car Insurance Policy & Own Damage Bike Insurance Policy covers loss damage / loss due to:

  • Fire, explosion, self-ignition, lightning
  • Burglary, housebreaking or theft
  • Riot and strikes
  • Earthquake ( fire and shock damage)
  • Flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost
  • Accidental damages external means
  • Malicious act
  • Terrorist activity
  • Whilst in transit by road, rail, inland waterway, lift, elevator or air
  • Landslide and rockslide

Third Party Coverage:

Third Party Bike Insurance & Third Party Car Insurance Coverage include:

Third Party (TP) Injury / Death (Act Liability under Motor Vehicles Act): This is a mandatory cover for any vehicle plying on the roads. This provides compensation in the event of death, disability in the event of an accident

Third Party Property Damage (TPPD): This provides a compensation in the event of damage to a third party on account of accident. TPPD compensation limits covered are as below

1) Private cars: Rs. 7, 50, 000

2) Two Wheelers: Rs. 1, 00, 000

3) All other classes of vehicles: Rs. 7, 50, 000

Legal Liability (LL) to Paid Driver: Legal liability covers the legal under the Workmen’s Compensation Act in the event of the death/ disability of the driver/ cleaner

Compulsory Personal Accident Cover for Owner-driver:

This cover is for Owner- Driver whilst driving the vehicle including mounting into/ dismounting from or travelling in insured vehicle as co- driver. This is mandatory for an individual “owner- driver” of a vehicle. Not granted where vehicle is owned by an entity/ company. The owner-driver should hold a valid driving license..

The maximum compensation payable is Rs. 15,00,000.

The company will pay to the insured / nominee if the accident results in any of the following within 6 six calendar months of its happening:

Nature of Injury Scale of Compensation
Death 100%
Loss of two limbs or sight of two eyes or one limb along with sight of one eye 100%
Loss of one limb or sight of one eye 50%
Permanent total disablement from injuries other than named above 100% max

Personal Accident to unnamed passengers:

If any passenger other than the insured and/or the paid driver attendant or cleaner and/or a person employed by the insured is injured in accident when in the vehicle, he/she will be compensated under this cover.

Minimum Sum Insured is Rs. 10,000/- & Maximum Sum Insured allowed is Rs. 200,000/- For this an additional premium of Rs. 5/- is charged for every Rs. 10,000/- or part thereof

Nature of Injury Scale of Compensation
Death 100%
Loss of two limbs or sight of two eyes or one limb along with sight of one eye 100%
Loss of one limb or sight of one eye 50%
Permanent total disablement from injuries other than named above 100% max

Loss due to Wear and Tear

1)Loss due to Wear and Tear : Any loss occurring due to normal wear and tear of the vehicle will not be eligible for a claim. Similarly, any form of mechanical or electrical breakdown, failure of chassis, or body parts, or breakage due to rusting or other weather conditions will not be considered for a claim.

2) Damage incurred if the insured is driving under influence of alcohol : No insurer will offer cover for damages caused to the car due to accident in case when the insured person is driving under the influence of alcohol or any other intoxicating substance.

3) Any injury or property damage caused intentionally :if the insured person has intentionally caused damage to a person or property, then he will not get any form of reimbursement under a car insurance plan. Similarly, it will not cover damage caused to the insured’s property.

4) Damage Incurred during War :any loss caused to vehicle due to war, bio-chemical attack, or fire due to nuclear explosion and related events will not qualify for a claim.

5) Damage Due to Racing : Any kind of collision damage or property damage caused due to organized racing will not be cover under a car insurance policy. Similarly, it will offer limited cover or no cover at all for damages incurred if the vehicle is used in sharing programs.

6) Consequential loss of any kind.

Under the IDV, values of the following have to be declared separately:-

  • IDV of the vehicle (the value of chassis & body)
  • Value of trailer attached to the vehicle
  • Value of the following installed in vehicle & not provided by manufacturer:-
    • Electrical/ Electronic accessories
    • Non electrical accessories

THE SCHEDULE OF DEPRECIATION FOR FIXING IDV OF THE VEHICLE

AGE OF THE VEHICLE % OF DEPRECIATION FOR FIXING IDV
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%

IDV of vehicles beyond 5 years of age and of obsolete models of the vehicles (i.e. models which the manufacturers have discontinued to manufacture) is to be determined on the basis of an understanding between the insurer and the insured.

Importance of Engine No. & Chassis No

These numbers are used to identify the insured vehicle. For all purposes the Insurer checks Engine & Chassis numbers, mostly at the time of claim. Hence these have to be correctly provided. In a new vehicle even registration numbers is not available and engine & chassis numbers are therefore even more relevant.

Hypothecation/ HP Details:

Providing hypothecation details to the insurer is very crucial. Till the loan amount is cleared the rights of the vehicle vests with the bank / financer which/who lends money. In case claim arises during the tenure of the loan then the insurance monies will go to the bank / financer. Once the loan is cleared the insured should change the HP status on the RC for getting all rights transferred. Similarly information should also be sent to insurer..

Geographical Zones or RTA/RTO Zones:

For the purpose of premium rating, the whole of India has been segregated into the following zones depending upon the location of the office of registration of the vehicle concerned. Check out the list of Regional Transport Office (RTO) in India.

(i) Private Cars/ Motorized Two Wheelers (private use and for hire and reward) / Commercial Vehicles- PCCV < 6 (both 3 and 4 wheeler)
Zone A Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi and Pune.
Zone B Rest of India

(ii) Commercial Vehicles excluding vehicles above
Zone A Chennai, Delhi / New Delhi, Kolkata, Mumbai
Zone B All other State Capitals
Zone C Rest of India

No Claim Bonus (NCB) can be earned only in the Own Damage section of the Policy

No Claim Bonus, wherever applicable, will be as per the following table.

No Claim Bonus Table:

Claims position on Section I (Loss of or Damage to the Vehicle Insured) at expiry of the Policy period % OF DISCOUNT ON OWN DAMAGE PREMIUM (Section-I)
No No claim made or pending during the preceding full year of insurance 20%
No No claim made or pending during the preceding 2 consecutive years of insurance 25%
No claim made or pending during the preceding 3 consecutive years of insurance 35%
No claim made or pending during the preceding 4 consecutive years of insurance 45%
No claim made or pending during the preceding 5 consecutive years of insurance 50%

If a claim is made under Section I Loss of or Damage to the Vehicle Insured the No Claim Bonus discount reverts to nil at the next renewal. Thereafter, NCB if any earned, will be in Terms of the above table.

Policy Excess/ Deductible:

The minimum amount of each & every loss borne or paid by the policyholder. Either a specified rupee amount, a percentage of the claim amount, or a specified time that must elapse before benefits are paid. The higher the deductible, the lower the premium charged for the same coverage.

In Motor Insurance, there are 2 kinds of deductible/ excess-

1) Compulsory Excess The compulsory deductible component is also called as a mandatory excess, and the Insurance Regulator mandates the rates. Compulsory Excess is that part of the claim amount which you will have to bear out of your pocket. For cars which are not exceeding 1500 CC, the rate is fixed at thousand rupees. For car exceeding 1500 CC rate is set at 2000 rupees. Moreover, for two-wheelers, the amount is rupees 100..

2) Voluntary Excess: In addition to the compulsory deductible, the customer can additionally opt to bear a small portion of the losses voluntarily. This is called ‘Voluntary Deductible’. The customer is eligible for a discount for agreeing to bear this ‘voluntary deductible’ in addition to compulsory deductible.

Proposal Form:

A contract requires two parties. One proposing and another accepting. In an insurance contract-

  • The proposer: Is the insured
  • The acceptor: Is the Insurance Company

Proposal Form (or an ‘offer’ for insurance) - An application containing numerous questions regarding the particular risk proposed. On the basis of information, signed by customer, the Insurer will decide whether to accept risk or not. Proposal Form is the BASIS of Insurance contract.

Cover Note:

A cover note is a temporary insurance certificate that is 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. This is valid for a period of maximum 60 days (varies for any period till 60 days) from the date of issue of the cover note and the Insurer issues the Insurance policy before the cover note expires.

Being a legal document confirming cover, utmost care must be taken to ensure that all precautions are taken, SOPs followed and underwriting guidelines are followed and all information is filled up in case of ‘Cover Notes’

Certificate of Insurance:

Generally printed, dated, signed, numbered. It mentions brief details of insured, Vehicle Insured, location, sum insured, premium and period of insurance. This forms a part of the Motor policy document and mandatory to carry in vehicle under Motor Vehicles Act. Nowadays, insurers provide a policy-cum-certificate of insurance and no separate certificate of insurance needs to be issued.

Endorsement:

A document issued by the insurer as proof of alterations to the policy of insurance issued during the policy period at the request of the insured with respect to:

  • Variations in sum insured (increase or decrease)
  • Change of Insurable interest by way of sale, mortgage, etc.
  • Extension of insurance to cover additional perils etc.
  • Addition of accessories Eg. CNG or LPG kit installed in the vehicle during the year
  • Include / exclude hypothecation
  • Correction of Vehicle / Engine / Chassis No.

Renewal Notice:

Motor insurance policies are annual by nature- valid for one year and need to be “renewed” every year before the end date (expiring date of insurance). Renewal notice is a note of courtesy and healthy business practice sent by an insurance company asking the insured person to renew the insurance. Normally notice is sent to the insured at least one month in advance of the date of expiry, inviting renewal of the policy and giving the premium, terms and conditions for renewal0

1. Waiver of Depreciation IRDA BAP UIN No.IRDAN123A0003V01200910

In consideration of payment of additional premium for this benefit, the company will indemnify the insured against loss or damaged to the parts subject to a deduction of depreciation at the rates mentioned below in respect of parts replaced.

Subject to a deduction for depreciation at the rates (%s) mentioned below in respect of parts replaced
Sl. No. Content Present Percentages 100% waiver of depreciation
1 For all rubber/ nylon / plastic parts, tyres and tubes, batteries and air bags 50% Nil
2 For fibre glass components 30% Nil
3 All parts made of glass Nil Nil
Rate of depreciation for all other parts including wooden parts will be as per the following Schedule
  AGE OF VEHICLE % OF DEPRECIATION
4 Not exceeding 6 months Nil Nil
Exceeding 6 months but not exceeding 1 year 5% Nil
Exceeding 1 year but not exceeding 2 years 10% Nil
Exceeding 2 years but not exceeding 3 years 15% Nil
Exceeding 3 years but not exceeding 4 years 25% Nil
Exceeding 4 years but not exceeding 5 years 35% Nil
Exceeding 5 year but not exceeding 10 years 40% Not Applicable

Subject otherwise to the terms, exceptions, conditions and limitations of the policy.

2.Consumables Plus cover: UIN IRDAN123A0007V01201617

In consideration of payment of additional premium, the company hereby undertakes to reimburse cost of consumable items actually consumed and utilized for repairing the accidental damages / losses i.e. those articles or substances which have specific uses and when applied to their respective uses are either consumed totally or are rendered unfit for continuous and permanent use. Such Consumable Items will include nuts and bolts, screw, oil filter, fuel filter, bearings, washers, clips, wheel balancing weights, grease, wheel bearings, distilled water, engine oil, gear-box oil, power steering oil, AC gas oil, air conditioner refrigerant, battery electrolyte, wind-shield washer fluid, radiator coolant, oil filter, fuel filter, air filter element, brake oil , coolant and items of similar nature.

Consideration of this benefit is subject to subsistence of a valid Own Damage claim under Section -1 (Own Damage Section) of the policy.

Specific exclusions:

Insurance Company is not liable for payment of any claims of the following nature:

  • Losses or damages covered under Manufacturer warranty or recall campaign
  • Any claims related to loss or damage due to normal wear and tear.

This cover is subject otherwise to the terms, exceptions, conditions and limitations of the policy.

3.Hydrostatic Lock Plus Cover

In consideration of payment of additional premium, insured will be reimbursed the cost incurred to repair or replace parts of engine or gear box or differential assembly including packing kit & under body damage due to ingress of water into the vehicle covered under this policy or due to leakage of lubrication or loss or damage to engine cooling system. This cover is subject to the following terms and conditions:

  • Claim due to water damage cover is payable only if there is an evidence of the insured vehicle being submerged or having stopped in water logged area.
  • Claim has to be intimated to the insurance company immediately.
  • All reasonable precautions are taken to protect the vehicle to avoid aggravation of damages / loss.
  • The replacement value which is the cost of a new engine or gear box or differential assembly shall be subject to depreciation based on age of the vehicle as per policy terms.

Specific exclusions

Insurance company is not liable for payment of any claims of the following nature:

  • Cost of Lubricating oils or coolant used in the assembly.
  • Losses or damages covered under Manufacturer warranty or recall campaign.
  • Increase in loss or damage including corrosion due to delay in intimation of claim beyond seven (7) days from date of loss.
  • Any claims related to loss or damage due to normal wear and tear.

This cover is subject otherwise to the terms, exceptions, conditions and limitations of the policy.

4.Vehicle Replacement Advantage Cover:UIN IRDAN123A0011V01201617

In consideration of payment of additional premium for this cover, it is hereby agreed that the insured vehicle and the declared accessories are insured for the value of new replacement cost with all applicable taxes and charges paid for the insured vehicle on the date of total loss including registration charges incurred for the vehicle, Road Tax and total insurance cost of this policy availed with us and in force on the date of accident. This cover is subject to the following terms and conditions:

  1. Benefit under this cover is available only in the event of total loss of the vehicle due to an accident, theft or Constructive Total Loss (CTL) as defined in the policy.
  2. It is not mandatory to replace the vehicle.
  3. No imposed excess is applicable for this cover.
  4. Compensation payable under this cover will be the total cost incurred towards insurance of this policy availed with us and in force on the date of accident, road tax and registration cost incurred with the transport authorities for the insured vehicle and the Show-room value of brand new vehicle with all applicable taxes and charges of same make, model and variant with identical features and specifications on the date of loss. If identical vehicle is not available for sale, then the last available Ex-Showroom price of the insured vehicle with all applicable taxes and charges will be paid along-with registration charges, Road Tax paid for the insured vehicle and total insurance cost of this policy availed with us and is in force on the date of accident.
  5. Company is not liable for any other financial dues of the insured in respect of the vehicle covered.
  6. This benefit is available for the vehicles upto 6 years of age.
  7. No depreciation will be applied to assess the loss in the event of Total Loss (TL) or Constructive Total Loss (CTL).
  8. Any disbursement under this cover will be full and final settlement of our liability under the Motor Insurance Policy and The Motor Insurance policy shall expire on settlement of the claim under this cover.

For the purpose of this Add-on cover, Total Insurance Cost will include the Premium paid towards Own Damage Cover, Third Party Liability, Add-on Cover premium and Service Tax paid for the Motor Private Car Package policy availed with us and is in force on the date of accident.

This cover is subject otherwise to the terms, exceptions, conditions and limitations of the policy.

5.Chola Value Added Services – Private Car Package Policy UIN IRDAN123A0006V01201718

In consideration of payment of additional premium, the following services will be offered to Insured:

Sl. No. Services Offered for Private Car
1 Assistance on Phone
2 On site minor repair
3 Battery Jump Start
4 Flat Tyre Replacement
5 Locked or Lost Keys
6 Replacement Keys
7 Fuel Delivery
8 Emptying of Fuel Tank
9 Transfer of Covered Vehicle for Non-Accidental Breakdown
10 Towing for Accidental Breakdown
11 Transfer cost reimbursement for services provided out of the Facilitators Service Provider Network
12 Medical and Legal Co-ordination
13 Information of Authorised Workshop
14 Provision of Local Taxi
15 Repatriation of the repaired or recovered vehicle
16 Removal of Vehicle
17 Provision of Replacement Vehicle
18 Provision of Hotel Accommodation or Travel Forward or back to Residence

Assistance handling procedure

✔ Insured shall call the Facilitator helpline “xxxx xxxx xx” to avail services and furnish the following details to the facilitator at the time of immobilization of Vehicle:

  1. Name
  2. Motor Insurance Policy Number and / or cover note
  3. Vehicle Registration Number
  4. Vehicle Make & Model
  5. Breakdown Location
  6. Policy start date and End date
  7. An indication as to the nature of the problem and Service requested

✔ Facilitator will despatch the Services after checking Supplier Network at the place of breakdown

✔ Facilitator will send service professional to the insured’s location to render necessary services.

✔ Facilitator will check with the insured on service arrival and if not will check with the supplier for alternate arrangement

✔ Services will be provided on 24 x 7 basis on all the days in a year.

Grievance Redressal:

If the Insured person is aggrieved in any way due to the following:

  • Facilitator does not respond to the customer at the time of calling,
  • Delay in despatch of services
  • Any dispute on the services offered
  • Any dispute on the amount to paid / payable in addition to what is mentioned in the Add-on cover wording
  • Any other grievance

the Insured person can contact US with the details of grievance through:

Our Website: www.cholainsurance.com

E-mail: customercare@cholams.murugappa.com Call us @: 1800 208 5544

In case, if the insured person is not satisfied with the decision of our above Office or have not received responses within 7 days of the complaint, the Insured person can contact our

Grievance Redressal Officer,
Cholamandalam MS General Insurance Company Limited
Thambu Chetty Street,
Chennai – 600 001.

In case if the Insured person is not satisfied with our resolution, the Insured person shall contact Ombudsman at the address given in the Policy wording.

6.Loss of Key Cover: UIN IRDAN123A0006V01201617

In consideration of payment of additional premium, insured will be reimbursed the actual cost incurred towards repair / replacement of the keys and / or new lock set and / or Total replacement of lock mechanism due to theft or burglary or damage to keys and key mechanism of the insured vehicle including installation cost of the same.

This is subject to submission of:

  1. Original First Information Report (FIR) with the Policy Authorities for verification in case of burglary or theft.
  2. Original bills for expenses incurred to obtain duplicate key(s) from manufacturer/authorized dealer of manufacturer for material and labour costs.

The Sum Insured for this cover will be equal to the replacement cost of the keys and / or new lock set and / or Total replacement of lock mechanism.

This cover is subject to the terms, conditions, exceptions and limitations of the policy.

7.Tyre Protect:UIN: IRDAN123RP0001V02100001/A0001V01201920

In consideration of payment of additional premium for this cover, it is hereby agreed that insurance company will reimburse for the replacement of the tyre (s) fitted to the insured vehicle if it is damaged due to Burst, Cut, and Bulge including labour cost.

This cover is subject to the following terms and conditions:

Residual tread depth of the tyre (s) at the time of loss Admissible claim amount
>= 7 mm 100% of the cost of new tyre(s)
>=5mm and < 7 mm 75% of the cost of new tyre(s)
>=4 mm and < 5 mm 50% of the cost of new tyre(s)
  1. This cover is available for a maximum of five (5) tyre(s) fitted to the Insured Vehicle including spare tyre during the policy period.
  2. The cover is available for a maximum of four (4) tyre(s) fitted to the Insured vehicle per claim during the policy period
  3. Company is liable to compensate only for the cost of make, model and specification of the tyres originally fitted by OEM even if upgraded tyres are fitted at a later date.
  4. If the same make, model and specification of the tyre(s) are not available in the Market, we will reimburse the price of the tyre of similar make, model and specification available in the market on the date of loss.
  5. Make, model, serial numbers of the tyres are to be disclosed by the insured in the proposal form.
  6. Compensation payable will be as per table given below:
  7. It is mandatory to replace the tyre, if claim is approved.
  8. Cover is subject to excess of 0.5% on the cost of the tyre in addition to Policy Excess, for tyres other than RFT. Cover is subject to excess of 1% on the cost of the tyre for Run Flat tyres (RFT) in addition to Policy Excess.
  9. Claim for tyre (s) payable under ‘Own Damage’ section of a package policy will not be considered under this cover.

Specific Exclusions:

  1. Tyre(s) worn out due to natural wear and tear.
  2. Any damage arising out of use of the insured vehicle beyond its passenger carrying capacity.
  3. Any damage caused due to non-maintenance of vehicle as specified by the Manufacturer of vehicle.
  4. Loss or damage arising out of modifications not approved by tyre manufacturer.
  5. Loss or damage resulting from hard driving due to race, rally or illegal activities.
  6. Loss or damage arising out of any manufacturing defect or design including manufacturer’s recall of product.
  7. Any minor damage or scratch or small cut not affecting the functioning of the product.
  8. Tyre which has been used for its full specified life as per manufacturer’s guideline.
  9. Theft of tyre(s) / tube(s) or its parts, accessories without vehicle being stolen or theft of entire vehicle.
  10. Any loss or damage due to over speeding, racing of the Car.
  11. Any loss or damage occurred prior to inception of the policy.

This cover is subject otherwise to the terms, exceptions, conditions and limitations of the policy.

 

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