Liberty Car Insurance

Liberty General Insurance Limited is a private insurance company in India, which was conceptualized in the year 2013. Liberty Insurance is a joint venture between Liberty Citystate holdings - belonging to Liberty Mutual Insurance Group of the US, and Enam Securities - a leading multinational property and casualty group. Liberty General Insurance Co. Ltd. has its operations 60 Indian cities, offering a range of insurance products for retail, commercial and industrial insurance.

Coverage for Private Car Insurance

Third-Party Liability: covers the damages to another person’s vehicle or property or the loss of life or injury caused to another person. The coverage extends to legal expenses or claims demanded by the third party for any damage to life and property.

Own-Damage: The loss of the insured vehicle or any damage to it or its parts incurred due to causes like floods, storms, hurricanes, earthquakes, fire, explosions, strikes, riots, terrorist attacks, theft, burglary, in-transit damage, etc. are covered under the private Car Insurance policy offered by Liberty Insurance.

Personal Accident Cover: It is an inbuilt cover provided to the owner of the car at no extra cost. The payout occurs when the insured policyholder either expires or is physically disabled due to a vehicle accident.

Optional Covers: To enhance the protection, these optional covers are offered to the customers on payment of extra premium:

• Electrical or Non-electrical accessories

• Personal Accident Cover (for people other than owner-driver):

• Legal Liability cover to paid employees

Add-On Covers

These additional covers can be purchased to make the insurance plan more inclusive and robust:

• Depreciation: The claims regarding replaced parts will be settled in full, without deducting the depreciation cost.

• Consumables: Recovery costs for items that are usually not covered under a base plan - like lubricants, grease, oil, nuts, bolts, screws, filters, washers, etc.

• GAP Value: The declared value of any car is always less than its original price since deductions are made for depreciation. This enhancement returns the invoice price to the insured policyholder in the event of a claim. This means that the insured policyholder will get back an amount equivalent to the showroom value of the vehicle and not the declared value.

• Passenger Assist: Medical assistance and expenses are not usually accounted for during times of mishaps. This feature provides the insured policyholder with the option of receiving coverage to meet medical expenses during accidents, like emergency transport, hospital charges, etc.

• Roadside Assistance: This add-on benefit provides assistance in case of breakdowns,  fuel shortages, battery discharge, flat tires, lockouts, towing and other on-road exigencies.

Sum Assured

Upon successfully processing of a claim, the policyholder is paid a certain amount of compensation. This amount largely depends upon the vehicle’s IDV.

IDV: It stands for "Insured’s Declared Value." It is the value arrived at after deducting depreciation from the vehicle’s selling price as declared by the manufacturer. The manufacturer’s price is inclusive taxes but excludes registration and insurance charges.

Depreciation: It is the amount deducted to arrive at the IDV. The vehicle's age plays an important role here:

• If the vehicle’s age is less than 6 months, then the rate of depreciation is 5%.

• If the vehicle’s age exceeds 6 months, but within 1 year, then the rate of depreciation is 15%.

• If the vehicle’s age is over 1 year, but with 2 years, then the rate of depreciation is 20%.

• If the vehicle’s age is in between 2 to 3 years, then the rate of depreciation is 30%.

• If the vehicle’s age is in between 3 to 4 years, then the rate of depreciation is 40%.

• If the vehicle’s age is in between 4 to 5 years, then the rate of depreciation is 50%.

• For vehicles aged above 5 years and if the model has become obsolete, then the IDV for the concerned vehicle is the price mutually decided between the customer and the insurer.

Cost or Premiums

The amount that the proposer pays as premiums determines the cost of the policy. The premiums payable for third-party liabilities are based on mandated tariffs. However, own-damage premiums are set by the insurers. The Liberty Car insurance premiums are determined after taking into account the following factors:

• Capacity:  The cubic capacity (cc) of the car’s engine.

• Age: The age of the car.

• Location: The location where the car was bought or registered.

• Type: The type, model and make of the car.

• Sum assured: The insured’s declared value as already explained above.

Discounts

Liberty Car Insurance comes with various kinds of discounts and bonuses like the following:

No-Claim Bonus (NCB): This bonus is applicable when policyholders renew their policy without filing for any claim in the policy terms. The bonus becomes a discount on the premium charged towards own-damage protection. The percentage of bonus is determined by the number of claim-free years achieved by the policyholder as follows:

• 20% discount for 1 claim-free year

• 25% discount for 2 claim-free year

• 35% discount for 3 claim-free year

• 45% discount for 4 claim-free year

• 50% discount for 5 claim-free year

The amount awarded can be accumulated for up to 50% of the Own-Damage premium. The amount can be transferred while changing insurers - the accrued bonus, if not redeemed, can be carried forward to the new insurer while taking a new policy, subject to providing proof. This transfer is possible both ways, irrespective of whether Liberty Insurer is the old insurance company or the new one.

Membership discounts: Customers who are the members of recognized automobile association of India or are willing to take up the said membership can avail premium discounts.

Discounts for safety: Customers who install an anti-theft device approved by ARAI are entitled to a discount of 2.5%, subject to a maximum amount of Rs.500.

Deductibles

This refers to the part of the claim amount which is payable by the insured, the balance of the amount being met by the company. It is mainly in two forms:

Voluntary: In case the policyholder is willing to contribute to the payout due for own-damage claims, a discount is applicable to the premiums. The reduction is according to the amount agreed as voluntary deductible.

• 20% for Rs.2500, limited to Rs.750

• 25% for Rs.5000, limited to Rs.1,500

• 30% for Rs.7500, limited to Rs.2,000

• 35% for Rs.15000, limited to Rs.2,500

Compulsory: It is mandatory for the policyholder to pay the following amounts in the event of a claim based on the capacity of the engine:

• Rs.1,000 for up to 1500 cc

• Rs.2,000 for above 1500 cc

Exclusions

As per the terms of the Liberty Car Insurance policy, a variety of situations aren't covered, and claims under such circumstances are not entertained. The following instances are not excluded:

• Normal wear and Tear

• Depreciation

• Breakdown or failures due to mechanical or electrical damages

• Usage over set limits

• Usage of the vehicle outside the specified and permitted geographical area

• Mishaps caused by an unauthorized driver, i.e., without a valid license

• Driving under the influence of any intoxicating substance, like alcohol or drugs

• War or nuclear activities

Customer Care

• Customers can reach the Liberty Insurance customer care department by calling the toll-free number: 1800 266 5844

• They can also send an email to: [email protected].

• They can also visit the website and fill up an online form to request for a callback.

• The website offers several locators to find the locations of the company's branch offices as well as the authorized garages for cashless servicing

FAQs

What all are covered in the Liberty Car Insurance policy?

The Liberty car insurance policy offers coverage for the following types of losses:

• Loss or damage caused to the car due to accident, fire, burglary, external explosion, etc.

• Liability for third-party death or injury as well as damage caused to third-party property.

Can one customize their policy with add-on covers?

Yes. One can easily enhance the protection offered by the standard policy package by purchasing add-on covers. These covers usually offer protection against the loss due to electrical as well as non-electrical accessories, personal accident cover, legal liability to paid employees, etc. These are the add-on covers available:

• Depreciation: The claims regarding replaced parts will be settled in full, without deducting the depreciation cost.

• Consumables: Recovery costs for items that are usually not covered under a base plan - like lubricants, grease, oil, nuts, bolts, screws, filters, washers, etc.

• GAP Value: The declared value of any car is always less than its original price since deductions are made for depreciation. This enhancement returns the invoice price to the insured policyholder in the event of a claim. This means that the insured policyholder will get back an amount equivalent to the showroom value of the vehicle and not the declared value.

• Passenger Assist: Medical assistance and expenses are not usually accounted for during times of mishaps. This feature provides the insured policyholder with the option of receiving coverage to meet medical expenses during accidents, like emergency transport, hospital charges, etc.

• Roadside Assistance: This add-on benefit provides assistance in case of breakdowns,  fuel shortages, battery discharge, flat tires, lockouts, towing and other on-road exigencies.

Which factors decide the premium amount?

The various factors that decide the premium amount are: the Insured Declared Value of the vehicle, its age, make and model type, the engine’s capacity, etc.

What are the various discounts available on Liberty Car Insurance?

• No-Claim Bonus (NCB): This bonus is applicable when policyholders renew their policy without filing for any claim in the policy terms. The bonus becomes a discount on the premium charged towards own-damage protection. The percentage of bonus is determined by the number of claim-free years achieved by the policyholder.

• Membership discounts: Customers who are the members of recognized automobile association of India or are willing to take up the said membership can avail premium discounts.

• Discounts for safety: Customers who install an anti-theft device approved by ARAI are entitled to a discount of 2.5%, subject to a maximum amount of Rs.500.

How to file a claim?

First, visit the nearest branch of the insurer or send a mail to the customer care id or call the toll-free number and intimate the company about the incident. Next, the customer care executive will guide you through the claim registration process. The following details might come in handy:  

• Vehicle insurance policy number

• Contact details of the insured policyholder

• Vehicle registration number and other details

• FIR copy of the accident/loss/damage

• Driving license of the driver

What documents are required while filing a claim?

These are the documents that might come in handy while filing a claim:

• Claim form - duly filled and signed

• A photocopy of the owner's/driver's driving license

• A photocopy of the vehicle’s registration certificate

• For accidents - Police or fire brigade report

• For theft, NOC (No Objection Certificate) from the financier

• Indemnity bond

Other documents such as Repair and Replacement bills will also be required, depending upon the damage.

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