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Car insurance cover note form

Motor or vehicle insurance is an insurance policy that protects the owner of the vehicle against any financial loss arising out of damage or theft of vehicle. Motor vehicle coverage also includes damage caused to third party or property. Motor Insurance is mandatory in India.Motor Insurance is available for both cars and two wheelers. Owing to low value of two wheeler vehicles, their premium is very nominal.

Comprehensive Cover and Third Party Cover

A third party cover is base insurance policy which covers only damage caused to third party by the vehicle. Comprehensive car insurance is a complete car protection insurance policy. The generic cover includes damage to vehicle, loss and theft of vehicle as well as third party cover.


The cover with car insurance includes:

  • Damage to vehicle caused due to accident, riots, strikers, malicious acts, earthquake, flood, storm etc
  • Loss or theft of vehicle
  • Liability to third parties
  • Personal Accident Cover available for owner driver

What is not covered?

  • General ageing, wear and tear
  • Mechanical or Electrical Breakdown
  • Damage caused by person under influence of alcohol, drugs and any other intoxicating substance
  • Damage caused by person driving without valid driving license
  • Consequential loss
  • Loss damage outside India

Factors which affect premium

IDV: This is the cover amount of the vehicle. Cover is decided on basis of value of vehicle with depreciation adjusted.

Age: As a person matures, he becomes more responsible and with less tendency to drive rashly. Accordingly, premium discount is provided.

Occupation: Discount on premium is offered to people belonging to certain professions. The professions include medical doctors, chartered accountants etc.

Claim History: If you make no claim during your policy years, you can get discount which is called no claim bonus and it ranges from 10% to 50%. Conversely, making too many claims can result in increase in premium amount (loading).

How to reduce insurance premium for:

New Car: If you have brand new vehicle, it makes sense to get comprehensive coverage with add-on covers. However you can still save premium amount by comparing car insurance premiums from multiple insurance companies.

Old Car: If you have old vehicle, you can opt for basic comprehensive car insurance plan. If vehicle is too old, you can go for just third party car insurance. It will certainly save a lot of premium amount.


There are many ways to apply for a claim. The first and foremost thing about making a claim is to notify the insurance company as soon as possible. Then register the claim by providing requisitive documents like claim form, vehicle registration copy etc. Some insurers allow registration online.

Cashless Claim: If you take the vehicle to network garage for repairs, the complete claim process can be cashless.

Claim Reimbursement: If you take vehicle to any other garage, you need to pay for claim amount. After repairs, you can apply for claim reimbursement with the insurance company.

How to buy Car Insurance?

Option 1: You can contact agent or broker and buy car insurance.

Option 2: You can insure directly with current insurer by visiting their branch or doing it online.

Option 3: You can make a comparison on portals like Policy Bazaar and buy car insurance online.

Buying Insurance for brand new Car

Typically, insurance is offered by showroom representatives. But it is not mandatory to buy insurance from them. One can check insurance quotes online and buy insurance. It is preferable to buy insurance online as you can save on premium costs and also opt for better comprehensive cover.

Buying Insurance for Second Hand Car or Pre-Owned Car

If you are buying pre-owned vehicle, you can contact insurance companies and check quotes based on model and value. Vehicle inspection is required in most cases.


Cover note: When you buy car insurance, you are issued a cover note for the vehicle which has limited validity of around 1-2 months. Do get complete policy document as cover note expires soon and has no value after its validity expires.

Add-ons with Car Insurance

One can extend the coverage for car insurance by opting for add-ons. These add-ons will increase the financial coverage but additional premium amount will be added to the base premium amount. Some of popular add-ons available with car insurance are:

Zero Depreciation: There is certain value to part of the vehicle. When a claim is made, depreciation is calculated on these parts and the amount is paid accordingly. By opting for zero depreciation cover, the entire amount of the part is paid as a part of claim.

Engine and Gear Box Protection:  In case damaged is caused to engine parts or gear box of the vehicle due to water ingression, leakage of lubricating oil etc, the costs for repair and replacement will be covered.

Car Insurance Quotes

Car insurance quotes can be found online directly from insurer’s website. Car insurance quotes can also be checked from online comparison portals which offer comparison of car insurance quotes from different insurance companies.

Car Insurance Calculator

Car insurance premium calculators are available on insurer’s website. One can get the premium amount for the vehicle. Car insurance calculators take into account parameters like no claim bonus etc and then provide the premium amount.


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Car insurance cover notes

Having two insurance policies one car illegally parked

Do you know your cover notes from your certificates of insurance? Find out about the car insurance documents you need.

Key points

  • A cover note is an important but temporary document to prove you have motor insurance before you receive the full certificate
  • If you don't receive one it may be because your insurer's policy is to issue a certificate as soon as you take out cover, or because they offer their documents online
  • If you feel you don't have the right documentation, contact your insurer as soon as possible

There are lots of things to take on board when you buy car insurance, and it's easy to get confused by all the different terms.

You might be issued with a cover note.

This is not the same as a certificate of insurance or your policy document, but it's an important piece of paperwork that you may need to produce if you have to make a claim.

It's a legal requirement to have at least the minimum level of insurance in place before you drive a vehicle, and you also need an insurance document in order to tax your car.

So if you receive a cover note once you've chosen your car insurance provider, here are some things you might need to know:

Why have I been sent a cover note by my new insurers?

A cover note is a temporary document. You might have been sent it whilst the insurance underwriter completes the paperwork or looks more closely into the risks of issuing you with an insurance policy.Best

The cover note stands in place of the certificate of insurance and the policy document until these are issued to you.

Are the terms the same as in the full policy?

The policyholder (you) will be covered by the same terms and conditions as are listed in the full policy document, although there might be a few limitations due to any potential risks involved in insuring you that the underwriters might be looking into.

For example, the insurance firm might reserve the right to cancel your cover immediately, whereas ordinarily they would have to give you at least seven days' notice.

Keep your documents safe

  • You might need to produce them if stopped by police, or to check them if you're involved in an accident

How long will the cover note last?

The length of time a cover note is valid for depends on the insurer and on the policy, but 60 days tends to be the maximum cover period.

The timescale must be stated on the cover note, and it's an offence under the Road Traffic Act to note a date or time pre-dating the issue of the note.

What information should the cover note include?

The cover note will include the same details as are listed on a certificate of insurance, such as the name(s) of anyone entitled to drive the vehicle, the vehicle make and model, and the extent of cover.

It will also state whether your insurance cover is fully comprehensive, third party only or third party, fire and theft.Asda car insurance number

What happens next?

Shortly after the cover note has been issued, the insurers should forward your permanent documents. These will include the certificate of insurance, a schedule and/or policy document and a policy booklet.

Your certificate is the document that proves you're insured to drive whilst the policy and booklet tell you everything you need to know about your insurance and how to get in touch with the insurance firm should you need to make a claim.

You can find out more about these other documents in our beginners' guide to car insurance.

What happens if the cover note expires and the permanent documents have not been issued?

If your cover note runs out and the permanent certificate has not been sent to you, you should be sent an extension cover note.

Check documents with care

    A misspelt name or incorrect date of birth could make a real difference if you have to make a claim.

  • How to avoid claim rejections

You must check that this new document starts at the exact time the previous note expires.

Do I need to keep these documents?

Yes, you should read them carefully and then keep them in a safe place.

You might need to produce your certificate if stopped by a police officer or you might need to check the terms of your policy if you're involved in an accident.

Don't forget to check the details on your documents as soon as you receive them.

The insurer might have made a simple mistake, such as misspelling your name or getting your date of birth wrong.

This might not seem important, but it could make a real difference if you have to make a claim.Car insurance india quotes and sayings

Why haven't I been sent a cover note?

Some car insurance companies don't issue cover notes.

Some have a policy of issuing the certificate of insurance on the day you accept the insurance.

Many insurance companies also issue a confirmation email within 24 hours of you accepting the policy.

By Rebecca Lees




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