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  FAQ On Auto Insurance
  What is Bonus/ Malus system ?

What are the minimum/ maximum percentages of the Bonus/Malus?

On sale and transfer of vehicle, what happens to the Bonus/Malus?

What is voluntary excess?

How is voluntary excess different from compulsory excess?

What are the categories of vehicles that are covered by a Motor Insurance Policy?
What is Bonus/ Malus system?
In case of any accident occurring in a year for which a claim is lodged on insurance company, in the very next year, the insurance company loads the premium by way of charging a malus- a percentage of extra premium. Whereas when there is no claim lodged during the year the insurance company grants a discount in the premium by way of bonus.
What are the minimum/ maximum percentages of the Bonus/Malus
The minimum Bonus is 20 percent, maximum is 65 percent whereas minimum Malus is 105 percent and maximum is 50 percent.
On sale and transfer of vehicle, what happens to the Bonus/Malus?
The Bonus/Malus goes with the original owner since he can claim bonus on his next purchased vehicle. However the purchaser enjoys the bonus under seller's policy till the renewal date. On date of renewal, the bonus/malus has to start afresh.
What is voluntary excess?
Voluntary excess is client's option to opt for bearing a certain amount of loss from every claim. For this option, insurance company allows a discount in premium.
How is voluntary excess different from compulsory excess?
In case of voluntary excess, it is the client's option for which he gets discount in premium whereas compulsory excess is imposed by the insurance company in addition to Malus to take care of a bad claim experience for a particular car. For compulsory excess, no discount in the premium is allowed.
What are the categories of vehicles that are covered by a Motor Insurance Policy?
For the purpose of insurance, motor vehicles are divided into three classes:

Private cars: This category comprises of cars, including station wagons, used for social, domestic, business or professional purposes (excluding those used for the carriage of goods other than samples)

Motor Cycles: This includes motorcycles with or without sidecars, pedal cycles, mechanically assisted pedal cycles and motor scooters with or without sidecars

Commercial Vehicles: All vehicles excluding private cars, motor cycles and vehicles running on rails come under this category
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