SBI Car Insurance

SBI is undoubtedly one of the biggest and most popular banks in India. It is unmatched in terms of reach, as it has over 17,000 branches across the nation. This leading Indian banking institution has teamed up with Insurance Australia Group (IAG), an Australian financial protection provider to start its own line of insurance products under the name of SBI General Insurance Company Limited. SBI General exhibits a rare combination of ground-level market knowledge, reach and reputation of SBI with the managerial and sector expertise of IAG. A successful cross-border alliance, SBI General Insurance caters to a large number of SBI’s banking customers as well as many non-banking individuals through its strong distribution network consisting of bancassurance partners, brokers, agents and retail partners. The company’s reach extends to every nook and corner of the country, offering its product and services to corporate and retail customers as well as SMEs. They offer protection on health, vehicles, homes, travel and also against personal accidents. The car insurance policy offered by SBI takes care of the repair bills for vehicle damage, the hospital bill if the vehicle owner meets with an accident, as well as third-party liabilities. The SBI car insurance policy covers damages caused by both natural and man-made disasters.

Cover

SBI Car Insurance covers all liabilities towards third-parties, including the amounts payable as awarded by the Court for damages caused by the insured vehicle. This is a protection against possible financial liabilities in which the insured vehicle is responsible for or has been involved in an accident, resulting in the damage or loss of any third-party property and/or caused injury/death of a third-party individual. Instead of benefitting the insured directly, this cover saves him/her from the legal, medical and repair costs that the affected party may ask for a settlement. It is a compulsory insurance cover that all vehicle owners must purchase as per the Motor vehicle laws in India.

The policy covers all losses caused suffered by the insured policyholder - including the person's death or bodily injuries or property damage. This own-damage liability extends to situations wherein the said damages have been caused by fires, natural disasters, in-transit damages, theft, civil unrest, war, terrorism, etc. The insured owner of the vehicle is compensated for expenses within Rs.2 lakhs. Passengers of the affected vehicle can also make claims under this policy. Each individual travelling in the insured vehicle is insured for a maximum of Rs.2 lakhs.

Add-on Cover

• Depreciation waiver is available on replaced parts and additional accessories like CNG-LPG or bi-fuel kit. However, this cover isn't applicable to a total loss of the vehicle.

• No-Claim Bonus is applicable when policyholders renew their policy with SBI Insurance, provided that only one claim has been made during the policy period in which the repairs were done in a network garage. The bonus becomes a discount on the premium charged towards own-damage protection.

• Replacement of keys is an add-on cover that comes in handy in the event of lost or stolen keys. The amount spent in making duplicate keys or repairing broken locks at authorized garages is reimbursed within the specified limit of 10% or Rs.500, whichever is higher.

• Recompensing paid employees is an extremely beneficial add-on rider that helps meet the legal dues payable to employees or hired drivers who suffered a loss due to an accident where the insured vehicle was involved.

• Personal belongings cover is an add-on benefit that covers for the certain personal belongings of the policyholder that were damaged in the accident for up to Rs.50,000. However, items being transported for commercial purposes are not covered.

• Return To Invoice is an excellent add-on rider.  In case of theft or total damage of the vehicle, comprehensive car insurance policyholders can raise a claim through which the insurance company offers an amount equal to the IDV of the vehicle. However, if the vehicle is protected by this additional cover, then the policyholder can get the actual invoice price (the on-road price paid during purchase) instead.

Exclusions

As per the terms of the SBI 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

• Damages sustained if the vehicle is involved in racing competition, speed testing, reliability trial, motor trade business.

Sum Assured

A unique feature of SBI Car Insurance is providing flexibility to its customers. Policy costs are generally determined according to individual customer profiles. Low-risk clients are rewarded with discounts.

Different factors come into play while deciding the sum assured.

The sum assured is also known as the Insured’s Declared Value (IDV); it is based on the vehicle's selling price by the manufacturer adjusted for depreciation. The IDV of the car refers to its current market value. The IDV is calculated by subtracting the depreciation from the selling price of the vehicle as listed by the manufacturer. This amount is the maximum sum insured that the insurer pays to the policyholder in case of a total loss claim. The higher the IDV of the vehicle, the more expensive is the insurance premium. The  IDV of the vehicle is fixed based on the manufacturer’s selling price and the age of the vehicle. SBI Car Insurance deducts the following amount as depreciation:

• 5% for up to 6 months

• 15% for 6 months to 1 year

• 20% for 1 - 2 years   

• 30% for 2 - 3 years

• 40% for 3 - 4 years    

• 50% for 4 - 5 years

• The amount is mutually decided for obsolete vehicles and the vehicles that are more than 5 years old.

Discounts

SBI General has developed its motor insurance product to meet the comprehensive needs of all vehicle owners, looking to safeguard their financial interests in a frugal and flexible manner. The following discounts can be availed:

• No-Claim Bonus: It is a discount awarded on the premium amount, provided that the following requirements are met:

  • Completion of a claim-free policy year

  • Renewal of the policy within 90 days of its expiry

• Voluntary deductible discount: Special discount on premium if the customer chooses a higher voluntary excess amount.

• Age-related discount: Customers between 36 to 60 years get special discounts for assistance during emergencies on the road, guidance through the repairs and replacement process.

Customer Care

• Customers can reach the SBI Car Insurance customer care department by calling the toll-free number: 1800 22 1111

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