There was a 30% jump in the average budget for purchasing cars in India in 2022, as per a Mileage Report. The same year also saw an 81% surge in people purchasing their second car. If you have decided to buy another car, do consider protecting both your vehicles with a floater policy. It allows you to cover all your four-wheelers and two-wheelers under one insurance plan with one renewal date. This makes insurance more convenient and affordable.
Features of a Motor Insurance Floater Policy in India
Motor floater insurance is extremely beneficial for policyholders in India. Here’s why:
The premium to cover all cars is lower than getting separate policies for each vehicle.
The hassle of paying multiple premiums and remembering different renewal dates is eliminated.
Managing a single insurance policy is easier.
Getting all the details in one place helps you save time and effort.
Floater policies offer a lot of flexibility by allowing you to add or deduct cars and bikes mid-term.
Know that the policy applies to a single owner of multiple vehicles. You cannot insure your dad’s car or your brother’s bike under one floater policy. Further, the premium can be usage-based, and driver behaviour is taken into consideration.
How Does Floater Motor Insurance Work in India?
Third-party insurance is mandatory in India. If your vehicles already have this, you can choose a standalone own-damage cover. Else, you can take a comprehensive policy that provides own-damage plus third-party liability cover.
If you do not claim the policy term, a No Claim Bonus (NCB) is added to the premium during insurance renewal. Generally, up to 5 vehicles can be covered under a floater policy. The vehicle with the highest value is considered as the primary vehicle. The remaining ones are secondary.
Inclusions of Motor Insurance Floater Policy
Here’s what a typical floater policy will cover:
Damage caused by fire or explosion.
Accidental damage to the car in transit.
Damage during strikes and riots.
Theft and burglary.
Natural calamities like floods, landslides, and severe storms.
Exclusions of Motor Insurance Floater Policy
Below are a few aspects that are typically not covered by a motor insurance floater policy:
Damage to an insured vehicle when the driver was drunk.
Damage to an insured vehicle when the driver does not have a valid driving license.
Repair or replacement of car parts due to wear and tear.
Damage caused by reckless driving or improper handling of the insured vehicle.
Further, mechanical or electrical breakdowns and depreciation of the insured car are not covered under the policy.
Can a Floater Motor Policy Be Cancelled?
Yes, this is possible under a few specific circumstances. The owner-damage cover will stand cancelled if the primary vehicle is lost or stolen. If a secondary vehicle is lost or stolen, the insurance will cover the primary vehicle and remove the secondary one from the policy.
If one of the vehicles is transferred to a new owner, the policy will no longer cover it. Also, the entire policy will be cancelled if all the vehicles are destroyed in a single incident.
Take the stress out of shopping for several motor insurance policies. Instead, opt for a floater policy to enjoy ease of paying and tracking premium, simpler documentation, and convenient renewals.
