A

ASSIGNMENT REPORT
ON

CAR INSURANCE (PRODUCTS ANS CLAIM SETTLEMENT)-A CASE STUDY OF BAJAJ ALLIANZ

In fulfilment of the requirements for

Post-Graduation Diploma in Management
(2019-2021)

UNDER THE GUIDANCE OF

Prof. Sahed Ahmed

SUBMITTED BY
Lagnajeet Patra (19DM030)
Dibya Ranjan Nayak (19DM032)
Girija Sankar Nayak (19DM033)
Deepali Mishra (19DM034)
Subham Dey (19DM035)

INSTITUTE OF MANAGEMENT AND INFORMATION SCIENCE

SWAGAT VIHAR, BANKUAL, ODISHA 75210
What is Car Insurance?
Car insurance, also known as auto or motor insurance, is an insurance policy which
protects the car from any kind of unforeseen damage. It covers the person
financially in case of any loss is incurred as a result of an unavoidable instance to
the vehicle. It covers the person against theft, financial loss and accidents. The
cover can range from, coverage to an insured party vehicle and third-party liability
which means that it covers – damage to insured vehicle or theft of the car also
coverage of legal liability (liability to others for body or property injury by insured
vehicle).
A car insurance policy gives confidence to a person to drive their car confidently
on the road and is a boon at the time of emergencies.

About Bajaj Allianz Car Insurance

Bajaj Allianz is one of the renowned names in the field of insurance. It provides
unmatched care and services for your private car. Car insurance business is one of
the fastest growing industries as Government of India has made it compulsory for
all the cars to be insured before they get on the road. Car insurance policy is one of
the most vital documents to be carried along as it protects your car against all
physical damages, accidents, etc. Million of car owners are showing trust in Bajaj
Allianz to insure their cars and bringing them the security and above all the peace
of mind. It claims to have advanced servicing capability and fast settlement
records.

What is the Scope of coverage in Bajaj Allianz Car Insurance

Bajaj Allianz covered a wide area of disasters and probabilities which may cause
damage to their car.
 Against natural calamities: All the natural calamities like flood,
earthquake, storms, hurricanes, fire, explosion, etc. are included in it, which
may damage your car partially or completely. All these factors are very
 important factors and human beings have no control over it. Recent Chennai
floods is a classic example for that.
 Against man-made calamities: It includes problems created by man like
accidents or third party like theft, burglary, riots, terrorist activities and other
such things.
 Personal accident cover: It also gives cover to the owner or driver upto 2
lakh rupees if he gets injured while driving or travelling.
 Third party legal liability: It also protects against the legal liabilities that
arises due to the accident like damage to the surrounding property or
permanent/ temporary injury to a person or death.

Features of Bajaj Allianz Car Insurance:

Cashless Claim settlement: Cashless claim settlement is a facility provided by the
car insurance company in which the insurer is associated with authorized garages,
which are referred to as network garages. If you want to repair your insured
vehicle, you can take it to a network garage to avail cashless claim facility. You
won’t be liable to pay for the vehicle’s repair, the insurer will cover all the
expenses on their behalf.
Working of Bajaj Allianz Car Insurance
 In the event of an unfortunate accident, you should immediately contact the
insurer and if needed you should also contact the police and file an FIR.
 The insurer will reach the accident spot and arrange for your vehicle to be
towed to the nearest network garage. A thorough inspection of your vehicle
will be carried out at the garage.
 The network garage will give an estimate for the repair work which will be
approved by the insurance company. After which the repair work will
commence.
 On completion of repair, the garage will provide all the relevant invoices to
the insurance company. Later, the insurer will examine the bills and the
vehicle.
 Once done, the policyholder will be liable to pay the deductible and
depreciation amount.
 The rest of the amount will be directly paid by the insurance company.
  If in case, your vehicle has been damaged beyond repair, the insurer will
provide you the market value of the car after calculating the depreciation
value of the vehicle.

Add On Covers

Add-Ons Are Additional Features Or Benefits You Add To Your Car Insurance To
Make It More Extensive And Airtight. The Add-On Covers You Add Only
Decrease Any Financial Burden You Are Likely To Incur At The Event Of An
Accident Or A Calamity. At The Same Time, The More The Add-Ons You Include
In Your Policy, The Higher The Premium You Have To Pay. For The Most Ideal
of their Wheeler Insurance, They Recommend You Adding Features That Are
Value Additions To Your Policy. Let’s Look At Some Of The Add-Ons They
Offer.

 Zero Depreciation: Also known as bumper to bumper cover, this is an add-

on you could add to your comprehensive car insurance policy.

 Engine Protector: Engine is one of the most crucial parts of a car.

Unfortunately, however, the expenses you incur on the damages to your
car’s engine is not covered under standard car insurance policies. Being one
of the most expensive parts for servicing, you end up spending more to
recover your car’s engine from a malfunction or an accident.

 24/7 Spot Assistance: One of the most helpful add-ons for your car
insurance, this ensures you are never stranded on the road due to any
concern associated with your car. Their team is just a call or a click away to
assist you or get to you to help you deal with a car situation regardless of
where you are stuck in India.

 Key and Lock Replacement: Car keys are some of the most misplaced
items in the world. From forgetting them at a restaurant to losing them at
 your own home, car keys are easily overlooked. Sadly, there are expenses
involved in getting new keys for your cars as it’s not just the key that has to
be replaced but the entire locking system as well.

 Consumable Expenses: Buying a car and maintaining a car are two

different things. There are frequent expenses involved when it comes to the
maintenance of your car. From servicing spare parts to replacing them, there
are expenses surrounding your car all the time.

 Personal Baggage: A car is your personal and private safe where you leave
your belongings inside until your work outside is done. From laptops and
expensive gadgets to money or money’s worth of valuables, you keep
materials inside your car very frequently.

 Conveyance Benefit: Another highly convenient add-on, where they take

care of the little yet significant concerns you are likely to face in your
everyday life post an accident.

24x7 roadside Assistance / Towing facility

A Roadside Assistance cover can be of great help, in case their car suffers a
breakdown or encounters a major snag on the road.
Coverage under the 24x7 Roadside Assistance Cover
Circumstances wherein a Roadside Assistance Cover would kick in to effect
include:
  Electrical/mechanical breakdown: The insurance provider would arrange
for a mechanic to carry out necessary repairs if your (insured’s) car suffers a
major mechanical or electrical breakdown in the middle of nowhere.
 Flat tire: In this case, the insurer can help arrange a technician to repair or
replace the tire.
 Towing: In case of an accident, the insurance provider would arrange for
your car to be towed to a network garage.
  Delivery of repaired car: In case you are on their, your insurer would
arrange for the repaired car to be delivered to your residence.
  Urgent relay of messages: In some cases, the insurer would help you get in
touch with your family members and relay messages urgently.
 Fuel assistance: This includes arranging up to 5 liters of fuel (expenses of
which you’d have to bear) or getting your vehicle towed to the nearest
garage in case of immobilization resulting from fuel getting contaminated.

Need for Car Insurance Policy

Buying a car is one thing and maintaining it is something that is completely
different. The roads are some of the most uncertain places, where negligence,
ignorance, carelessness or just sheer bad luck can bring about a lot of
consequences to you and your car.
And as a car owner, these consequences do cost you a lot. From a small dent on the
trunk to major accidents and natural disasters, a car on the road is subjected to
diverse threats on a daily basis. Moreover, money is involved in every stage of the
car’s recovery and safety. That’s why a car insurance policy becomes inevitable in
today’s day and age.
If you haven’t taken their wheeler insurance for your car yet or if you’ve just
bought a new car and are looking for a car insurance policy, here are some
extensive reasons you should get one today.

Covers Expenses On Own Damage

Apart from accidents, cars can be damaged due to natural disasters, natural
instances or their own technical glitches and malfunctions. Regardless of the
reason, expenses are involved in getting the car serviced. That’s why it’s ideal to
buy a car insurance as it covers damages arising due to uncommon reasons.

Third-party Liabilities
A car is a machine that is subjected to technical issues. A car gone out of control is
a threat to civilians and public properties. If there has been an accident with you on
the driver’s seat, you are bound to compensate for the damages caused. If you have
a car insurance policy, your insurance company would take care of the expenses.
 Personal Accidents
Having four wheeler insurance is like driving with a lifeguard. There is a backup
you have to cover the expenses incurred due to car accidents. A proper car
insurance policy also compensates for permanent disability arising due to a car
accident. This is an ideal financial support that is inevitable for families.

Mandatory by Law
If you are a car owner, you should mandatorily have a minimum of a third-party
car insurance according to the Motor Vehicles Act. Failing to have is an offence
and you could be penalized for it when caught.

Extended Benefits with Add-ons

You could include add-on benefits such as zero depreciation cover, consumables
cover, breakdown assistance, conveyance benefits and more when you buy car
insurance. This only makes their policy more airtight.

Additional Convenience
An extensive online their wheeler insurance policy also allows you to experience
benefits like coverage of personal baggage theft/damage, paperless-digital
insurance applications and processing, online claims, spot services and more.

Documents Required To Buy Car Insurance Online

When you buy car insurance online, ensure you have the soft copies of the
following documents in hand to seamlessly complete the process in minutes –

 Details about their vehicle including registration number

 A valid driver’s license
 Completed claim form
 Bank details
 Tax receipts
 Filled insurance forms
Why Bajaj Allianz Car Insurance
The features contained in the motor insurance of Bajaj Allianz are immaculate.
There are no loopholes through which the company can make your claim pending.
Buying a policy here will definitely give the car users not only safety but mental
peace and relaxation. But, you have to be a bit careful regarding the usage of the
car like it is used strictly for private purposes with a valid license holder driver
driving it. Beyond that I am happy with my car insurance.

No claim bonus or NCB from Bajaj Allianz Car Insurance

No claim bonus is rewarded to the owner of the vehicle who is currently the policy
holder and haven’t claimed anything in preceding year or years as the case may be.
It can be accumulated over a period of time.  It basically is a reward given to you
for being a good driver and helps you to reduce your motor insurance premium. At
Bajaj Allianz, you can save up to 50% of your premium if you haven’t made any
claim or claim pending in the last five years. Your NCB becomes zero as soon as
you make any claim and it can be transferred to a new vehicle in case you are
substituting your car with a new one but it should be of the same category.

What are the Benefits of Bajaj Allianz Car Insurance?

 It has tie ups with many service centres and workshops all around the
country which facilitates of cashless settlement. It has around 4000 preferred
garages for this purpose. It gives you hassle free inspection and high quality
services.
 There are toll free numbers given to locate the nearest preferred garage. You
can contact Bajaj Allianz Car Insurance customer care contact number
toll free 18002090144 or 18002095858 or 18001025858.
 The process of getting car insurance or its renewal involve very easy and
few steps.
 It facilitates you to transfer existing No Claim Bonus from any other motor
insurance provider ranging from 20% to 50%.
 It avails 24 hour theirs telephonic services all through the year, even on
holidays for claim support or any other kind of services.
 It even provides towing facility from the location of accident or breakdown
of the vehicle.
Limitations of Bajaj Allianz Car Insurance

 It does not include normal wear and tear and maintenance of the car like
change of tyres. It only accepts the claim if the car also damages and the
liability is restricted to 50% of the replacement cost.
 The car insurance does not apply if you use your car for taxi or hiring
purposes, for carriage of goods other than samples  or used in some race or
related purposes.
 The cars equipped with the CNG kit or bio-fuel kit is insured at an additional
premium.
 It does consider the claim made if a person is driving without a valid driving
license.
 The insurance policy does not cover the damage done to the vehicle or
person if the driver is driving under the influence of alcohol or drugs.
 It does not cover any consequential losses due to depreciation.
Inclusions
 Loss due to natural calamities: We may not have the power to prevent
them but we will cover your car against naturally occurring calamities such
as fire, explosion, self-ignition or lightning, earthquake, flood, typhoon,
hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide
and rockslide. 

 Loss Due to Man-Made Calamities: Man-made calamities reveal the dark

side of humanity but we will help lessen the blow by covering your car
against burglary, theft, riot, strike, malicious act and accident by external
means, terrorist activity and any damage during transit by road, rail, inland
waterway, lift, elevator or air.

 Personal Accident Cover: Your car is precious, yes, but so are you. The
Personal Accident cover provides coverage of Rs 15 lakh to the owner-
driver of the car while driving or travelling and while mounting or
dismounting. Optional personal accident cover for passengers and paid
driver is also available.
  Third Party Legal Liability: If you happen to be involved in an accident
that results in damage to property or loss of life of a third party individual,
we help you cover the legal obligations arising from it.

Exclusions

 Depreciation: Normal wear and tear and general ageing of the vehicle and
consumables like tires and tubes is not covered. Neither is depreciation or
any consequential loss. 

 Influence of Substances: We promote safe driving and hence, any damage

caused to the vehicle by a person driving it under the influence of substances
like liquor or drugs is not covered.
 Invalid license: Since getting your wheels on the road without a valid
license is illegal, we too do not cover damages caused by a person driving
the vehicle without a valid license. 

 War, Mutiny or Nuclear Risk: Just like in a zombie apocalypse, the

situation during war, mutiny and nuclear risk, is chaotic and uncontrollable
and any damage to your car during such events is not covered.