Bajaj Allianz Motor Insurance review
Bajaj Allianz General Insurance offers a private car insurance policy which will insure your car against
- Fire, explosion, self ignition or lightning
- Burglary, housebreaking or theft
- Riot and strike
- Earthquake (Fire and Shock Damage)
- By Flood Typhoon Hurricane Storm Tempest Inundation Cyclone hailstorm Frost;
- By accidental external means
- By malicious act
- By terrorist activity
- Whilst in transit by road rail inland waterway lift elevator or air
- By landslide/ rockslide
This seems like a pretty comprehensive cover but there are some exceptions as you will find, later in the review. Under Indian law every vehicle on the roads needs to be insured.
Here's a depreciation table for the various parts of the car
- For all rubber, nylon, plastic parts, tyre, batter and air bags 50 %
- For fibre glass components 30 %
- For all parts made of glass Nil
Rates of depreciation for all other parts including wooden parts will be as per the following schedule
- Not exceeding 6 months old - Nil
- Exceeding six months but not exceeding one year 5 %
- Exceeding 1 year but not exceeding 2 years 10 %
- Exceeding 2 but not exceeding 3 years 15 %
- Exceeding 3 but not exceeding 4 years 25 %
- Exceeding 4 but not exceeding 5 years 35 %
- Exceeding 5 years but not exceeding 10 years 40 %
- Exceeding 10 years 50 %
Under their motor insurance policy, Bajaj Allianz doesn't make payments for parts which get depreciated due to wear and tear, mechanical or electrical breakdown, failures or breakages. It also doesn't make payments for damage to tyres and tubes unless the vehicle is also damaged at the same time. In such a situation the liability of the company is limited to 50 % of the cost of replacement. If the person driving, with the consent of the insured, is under the influence of intoxicating liquor or drugs, no payment will be made by Bajaj Allianz Motor Insurance.
If the vehicle is damaged under the motor insurance policy of Bajaj Allianz, they will bear the reasonable cost of protection and removal to the nearest repairer and redelivery to the insured but not exceeding Rs.1500 in case of one accident.
If you have this car insurance policy you can authorize repair to the vehicle if necessitated by damage provided the cost of repairing doesn't go beyond Rs.500 and you furnishe Bajaj Allianz with a detailed estimate of the cost of repairs. You're expected to give Bajaj Allianz every assistance to see that the repair is necessary and the charges are reasonable.
The sum assured under the motor insurance policy - Insured Declared Value (IDV)
To determine the sum assured under this policy, the insured declared value (IDV) needs to be fixed before the commencement of the policy. THE IDV including any accessories fittted in the vehicle is fixed on the basis of the manufacturers's listed selling price of the brand and model of the vehicle to be insured. Any depreciation is deducted from this price to arrive at the IDV. The age-wise depreciation taken into account is as below:
- Not exceeding 6 months - 5 %
- Exceeding six months but not one year - 15 %
- Exceeding one year but not exceeding 2 years 20 %
- Exceeding 2 but not exceeding 3 years 30 %
- Exceeding 3 but not exceeding 4 years 40 %
- Exceeding 4 but not exceeding 5 years 50 %
If the vehicle is over 5 years old or if it is an obsolete vehicle that is no longer being produced, it is separately evaluated by Bajaj Allianz and an amount is arrived at on the basis of an understanding between the insured and Bajaj Allianz.
IDV is treated as the 'market value' throughout the policy period without any further depreciation, for the purpose of Total Loss (TL) or Constructive Total Loss (CTL) claims.
Insured vehicles are treated as CTL if the total cost of retrieiving and/or repairing the vehicle is more than 75 % of the IDV of the vehicle.
There's a certain level of depreciation that applies to the car parts
Third party liability insurance under this motor insurance policy
If a car driver meets with an accident, it is possible that he/she may damage someone else's car or property or cause injury or death to his co passengers or others on the road or in other cars. Under this car insurance policy you can be insured against any such third-party claims. This does not cover people carried in the car for gain. If you run a tourist taxi service, this policy is not for you. The amount of money in rupees for every aspect of the accident in total is limited to the total sum assured under the policy.
There is also an accident insurance cover available under this policy for which the amount is capped at Rs.2 lakhs. This provides accident insurance cover for permanent total disablement, loss of one limb or sight in one eye, loss of two limbs or two eyes or loss of one limb and one eye. The accident insurance cover is only available if the owner-driver is the registered owner of the vehicle insured and holds an effective driving license
Exceptions to claims under this car insurance policy
There are some situations in which your claim under this policy may not be honored. This includes:
If the event occured outside the geographical area covered by the policy.
Any claim arising out of a contractual liability
In the event of war including nuclear war, civil war, rioting, invastion, foreign enemies, warlike operations, mutiny, rebellion, military or usurped power. For the complete list of exceptions please read the terms and conditions provided by the company before you sign up for this motor insurance plan.
An important clause in the terms and conditions of this policy is:
The Company may cancel the policy by sending seven days notice by recorded elivery to the insured at the insured's last known address and in such event will return to the insured the premium paid less the pro rata portion thereof for the period the policy has been in force or the policy may be cancelled at any time by the insured on seven days notice by recorded delivery and provided no claim has arisen during the currency of the policy, the insured shall be entitled to a return of premium less premium at the company's short period rates for the period the policy has been in force. Return of the premium by the company will be subject to retention of the minimum premium of Rs.100 (or Rs.25 in respect of vehicles specifically designed/modified for use by blind/ handicapped/mentally challenged persons). Where the ownership of the vehicle is transferred, the policy cannot be cancelled unless evidence that the vehicle is insured elsewhere is produced.
This clause makes it possible for Bajaj Allianz to cancel the motor insurance policy simply by sending you a 7 day notice at your last known address. To be fair to them they also give you the same right. In either case, they would return Rs.100 minimum premium (Or Rs.25 for specially designed vehicles). There is also a mention of charging premium at the 'short premium rates', which are not disclosed but which may be higher than usual.
If you have multiple auto insurance policies
If you have more than one auto insurance policy, Bajaj Allianz will be liable to pay only upto its rateable proportion of the loss, damage, compensation cost of expenses.
In case of dispute
According to the terms and conditions of this motor insurance policy, if a dispute arises as to the amount to be paid under this policym the matter would be referred to a sole arbitrator who is acceptable to both the insured and the company, Bajaj Allianz. If the insured and Bajaj Allianz cannot agree on an arbitrator within 30 days of either party asking for arbitration, then three arbitrators would be asked to decide the case. One arbitrator each would be appointed by Bajaj Allianz and the insured and the third arbitrator would be appointed by the two arbitrators. If Bajaj Allianz refuses a claim, then arbitration would not be possible. Arbitration is necessary before any law suit over this policy. If Bajaj Allianz refuses a claim by the insured, then the insured can go to court within 12 months. If he/she doesn't do that, then such claim will be abandoned. We're not sure how far this clause would stand in court but it exists in the terms and conditions nevertheless.
Death of policy holder
If the policy holder dies, the legal heir after providing the death certificate, proof of title to the vehicle and original policy can get the policy transferred to his/her name.
Bookmark this page
Make Us your homepage