Best Car Insurance Companies in India 2021

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Life is uncertain and unpredictable. One can only take a positive measure to deal with unpleasant situations. Therefore, the concept of “insurance” is introduced to mitigate risks and provide protection. Insurance is the main way to manage life risks. Today there are various types of insurance policies that can protect the people you love and the things you love. In a life insurance policy, if the insured person dies, the insurance will compensate the insured person’s family with a certain amount of money. When choosing the right insurance plan, you will be spoilt for choice because there are various insurance companies on the market that offer many unique plans.

Protection is the basic expense that a person must pay in order to obtain the fate of his family. In fact, even a financial adviser recommends that you protect your profits before you start making financial arrangements. For different reasons, protection is an important requirement. The following are some of the reasons:

Protection provides you with money security and well-being net: If something goes wrong with the baker in the family, the financial situation of the family may come to a standstill. Protection remuneration can be converted into a family income to balance funds. With protection, when you are nowhere to be found, your family can be protected under any circumstances.

Insurance protects you and your family’s future goals: The sudden death of the breadwinner may have the most serious impact on the financial stability of the family. With insurance, your family can achieve financial stability even if you are not around. In addition, their future financial goals will remain unchanged.

Insurance encourages saving: Life insurance companies provide a variety of products, not only providing life insurance, but also providing terms that create wealth to achieve future goals. The requirement to regularly invest in such products encourages savings. For example, donation plans, refund plans, unit-linked investment plans, etc.

Insurance is an effective risk management tool: Insurance covers uncertainties such as risk of death, risk of injury, illness, etc. Insurance is about effectively managing these risks. Every insurance policy provides protection against underwriting risks.

Insurance gives you peace of mind: Since insurance can effectively manage risks, you can only pay for insurance regularly and stay stress-free. Peace of mind is what you get through insurance.

Car insurance can help you reduce the financial obligations that may arise from unfortunate events involving cars (such as road accidents, fires, thefts, natural disasters, etc.). According to Indian car tariffs, the law requires every car owner to have at least a third-party car insurance in order to drive their car/vehicle on Indian roads. Currently, there are 25 insurance companies in India that provide auto insurance.

More than 21 top Indian auto insurance companies with OD claims and online garages: IRDAI approved

Car Insurance CompanyMotor OD Claim Settlement Ratio FY20Network Garages
IFFCO Tokio General Insurance95.30%4,300+
Royal Sundaram General Insurance92.66%4,600+
The Oriental Insurance Company91.76%3,100+
HDFC ERGO General Insurance91.23%6,800+
Universal Sompo General Insurance90.78%3,500+
Tata AIG General Insurance90.49%5,000+
The New India Assurance89.60%3,000+
SBI General Insurance89.51%16,000+
Bajaj Allianz General Insurance88.83%4,000+
Future Generali India Insurance88.69%2,500+
Bharti AXA General Insurance87.99%5,200+
ICICI Lombard General Insurance87.71%5,600+
Liberty General Insurance87.48%4,300+
Cholamandalam MS General Insurance85.89%7,100+
National Insurance Company85.71%3,100+
Edelweiss General Insurance84.52%1,000+
Reliance General Insurance84.26%3,800+
Acko General Insurance83.91%2,000+
United India Insurance Company82.93%3,100+
Kotak Mahindra General Insurance82.81%1,300+
Go Digit General Insurance80.47%1,400+
Magma HDI General Insurance79.60%4,000+
Shriram General Insurance77.26%2,000+
Navi General Insurance76.20%900+
(Source: IBAI’s General Insurance Claim Insights Handbook – 5th Edition.)

How to choose the best car insurance company in India?

1. Cashless garage network: Auto insurance companies cooperate with many garages to facilitate cashless insurance claims. When choosing a car insurance company, be sure to check the strength of the insurance company’s cashless garage network. You must also check if there are enough cashless garages near his/her area.

2. Claim ratio: The claims ratio represents the number of claims resolved by the auto insurance company in all claims received in a fiscal year. It is always good to choose an insurance company with a high odds ratio.

3. Availability of add-ons: Additional insurance refers to additional insurance that can be selected through the standard auto insurance policy to expand the insurance coverage. Additional insurance can be used for self-damage and comprehensive auto insurance plans, and can be selected at the time of policy purchase and renewal.

4. Customer Support Service: The availability and quality of customer support services provided by insurance companies must also be checked. Some insurance companies provide 24*7 customer support, while others provide 5-day customer assistance services.

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Arbaj Demrot is the founder of VideRime Online Learning, a leading engineering website. He did his BE Civil and M.Tech Structure from RGPV University, Bhopal and has been working as an Assistant Professor in a reputed college.

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