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Comprehensive Car Insurance from Leading Indian Banks

Protect your vehicle with trusted insurance plans offering extensive coverage, cashless claims, and competitive premiums from India's top banking institutions.

Explore Insurance Plans

What is Car Insurance?

Car insurance is a contractual agreement between a vehicle owner and an insurance company that provides financial protection against physical damage or bodily injury resulting from traffic collisions, theft, and other vehicular incidents. In India, it is governed by the Motor Vehicles Act, 1988, and regulated by the Insurance Regulatory and Development Authority of India (IRDAI).

Key Insurance Terminology

Premium

The amount paid to the insurance company to keep your policy active. Calculated annually based on risk factors, vehicle value, location, and coverage selected. Paid upfront for policy activation.

IDV (Insured Declared Value)

The maximum sum insured fixed at policy inception, representing your vehicle's current market value after depreciation. Forms the basis for own-damage premium calculation and claim settlement.

Deductible

The amount you pay from your pocket during claim settlement before insurance coverage applies. Compulsory deductible is insurer-mandated; voluntary deductible is optional and reduces premium by 15-25%.

NCB (No Claim Bonus)

A discount on own-damage premium earned for every claim-free policy year, ranging from 20% to 50%. Portable across insurers and vehicles, encouraging safe driving and claim discipline.

How Car Insurance Works

1

Choose Your Coverage Plan

Select from comprehensive, third-party, or standalone own-damage insurance based on your vehicle type and protection needs. Indian banks offer flexible policy options with varying coverage levels to suit different budgets and requirements.

2

Pay Premium & Get Instant Coverage

Complete your premium payment through multiple channels including net banking, credit/debit cards, or UPI. Your policy becomes active immediately upon successful payment, and you'll receive digital policy documents via email within minutes.

3

File Claims When Needed

In case of accidents, theft, or damage, notify your insurer within 24-48 hours. Submit required documents including FIR (for theft), repair estimates, and photographs. Most banks offer cashless claim settlement at their network garages across India.

4

Quick Claim Settlement

After verification, claims are processed within 7-15 working days. For cashless repairs, the bank directly settles bills with the garage. For reimbursement claims, funds are transferred to your bank account after approval.

Cashless Car Repair
Cashless Benefit

Cashless Car Repairs
At Network Garages

With Cashless Car Insurance, you can get your vehicle repaired at authorized network garages without paying repair costs upfront. The insurer settles the bill directly with the garage.

In case of an accident or damage, simply take your car to a network garage and enjoy a hassle-free, cashless repair experience.

How It Works

  • Inform the insurer immediately after an accident.
  • Take the vehicle to a nearby network garage.
  • Survey and repairs are handled directly by the insurer.

*Cashless repairs are available only at network garages. Deductibles and policy terms apply.

Key Benefits of Car Insurance

🛡️

Financial Protection

Shields you from substantial repair costs due to accidents, natural disasters, theft, or vandalism. Comprehensive coverage includes own-damage and third-party liability, ensuring you're never burdened with unexpected expenses.

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Legal Compliance

Third-party insurance is mandatory under the Motor Vehicles Act, 1988. Avoid legal penalties, fines up to ₹2,000, and potential imprisonment by maintaining valid insurance coverage at all times.

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Cashless Repairs

Access to 4,000+ network garages across India for hassle-free, cashless claim settlement. Simply show your policy document, and the insurer handles payment directly with the garage, eliminating out-of-pocket expenses.

Customizable Add-ons

Enhance your base policy with zero depreciation cover, engine protection, roadside assistance, consumables cover, and return to invoice coverage. Tailor your insurance to match your specific needs and driving patterns.

🏥

Personal Accident Cover

Mandatory personal accident coverage of ₹15 lakhs for owner-driver provides financial support in case of accidental death or permanent disability. Extended coverage available for passengers as well.

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No Claim Bonus (NCB)

Earn up to 50% discount on premium renewal for every claim-free year. NCB accumulates annually: 20% after 1st year, 25% after 2nd year, 35% after 3rd year, 45% after 4th year, and 50% after 5th consecutive claim-free year.

What Is the Ideal Car Insurance Coverage?

The ideal car insurance coverage depends on your vehicle’s value, usage, location, and driving habits. A well-chosen car insurance plan protects you from financial losses due to accidents, theft, or natural calamities.

Experts recommend opting for a comprehensive car insurance plan with adequate own-damage cover and a sufficient third-party liability cover to ensure complete protection.

How Much Car Insurance Cover Do You Need?

  • Insured Declared Value (IDV) of the vehicle
  • City of usage and traffic conditions
  • Frequency of vehicle usage

For new or high-value vehicles, a higher IDV is recommended, while older vehicles may opt for a lower IDV to reduce premium costs.

Recommended Car Insurance Coverage

Vehicle Type Metro Cities Tier-2 Cities Tier-3 Cities
Hatchback IDV ₹5–7 lakh IDV ₹4–6 lakh IDV ₹3–5 lakh
Sedan IDV ₹8–12 lakh IDV ₹6–10 lakh IDV ₹5–8 lakh
SUV IDV ₹15 lakh & above IDV ₹10–15 lakh IDV ₹8–12 lakh

*Disclaimer: IDV values are indicative and depend on vehicle age, model, and depreciation.

You can further enhance protection by adding zero depreciation, engine protection, and roadside assistance add-ons to your car insurance policy.

Current Car Insurance Scenario in India

With a rapidly growing number of vehicles on Indian roads, the risk of road accidents, traffic congestion, and vehicle damage has increased significantly. Factors such as dense traffic, unpredictable road conditions, and weather-related incidents contribute to frequent claims.

Repair costs for vehicles have also risen due to expensive spare parts and advanced vehicle technology. Car insurance has become essential to protect vehicle owners from unexpected financial losses.

Did You Know?

  • India reports over 4.5 lakh road accidents every year.
  • Vehicle repair costs have increased by more than 30% in recent years.
  • Third-party car insurance is mandatory under Indian law.
  • Comprehensive car insurance covers own damage and third-party liability.
  • Natural disasters cause thousands of vehicle damage claims annually.
  • Metro cities report higher accident rates than smaller towns.
  • Zero depreciation cover reduces out-of-pocket repair expenses.
  • Engine protection is crucial during floods and waterlogging.
  • Cashless repairs are available at network garages.
  • Car insurance helps avoid sudden financial strain after accidents.

Top Car Insurance Plans from Indian Banks

Compare premium rates and coverage details from India's leading banking institutions and insurance providers. Data sourced from IRDAI reports and insurer disclosures for FY 2023-24. All prices are indicative for a ₹8 lakh vehicle (Maruti Suzuki Swift VXI) with comprehensive coverage in Mumbai.

Bank / Insurer
Annual Premium
IDV Range
Claim Settlement Ratio
ICICI Lombard General Insurance
Comprehensive Package Policy
Network: 6,500+ garages | 24/7 Support
₹11,245 - ₹13,890
Base: ₹8,450 + Add-ons
₹7,12,000 - ₹7,88,000
Depreciation: 5% (1 yr old)
97.54%
Avg Settlement: 11 days
Claims FY23-24: 8.2 lakh
HDFC ERGO General Insurance
Optima Secure + Smart Drive
Network: 5,800+ garages | App-based Claims
₹12,180 - ₹14,950
Base: ₹9,200 + Zero Dep
₹7,15,000 - ₹7,92,000
Depreciation: 5% (1 yr old)
99.17%
Avg Settlement: 9 days
Claims FY23-24: 6.8 lakh
SBI General Insurance Co. Ltd.
Motor Own Damage + TP Cover
Network: 4,200+ garages | SBI Branch Support
₹10,890 - ₹13,450
Base: ₹8,100 + NCB Protection
₹7,08,000 - ₹7,85,000
Depreciation: 5% (1 yr old)
96.28%
Avg Settlement: 13 days
Claims FY23-24: 5.1 lakh
Bajaj Allianz General Insurance
Car Guard + InTouch App
Network: 5,200+ garages | Digital Claims
₹11,650 - ₹14,200
Base: ₹8,750 + Engine Protection
₹7,10,000 - ₹7,87,000
Depreciation: 5% (1 yr old)
98.03%
Avg Settlement: 10 days
Claims FY23-24: 7.5 lakh
Kotak Mahindra General Insurance
Kotak Motor Protect Comprehensive
Network: 3,800+ garages | Kotak Net Banking
₹11,980 - ₹14,590
Base: ₹9,050 + Consumables
₹7,14,000 - ₹7,90,000
Depreciation: 5% (1 yr old)
95.76%
Avg Settlement: 14 days
Claims FY23-24: 3.2 lakh
The Oriental Insurance Co. Ltd.
Private Car Package Policy
Network: 3,500+ garages | PSU Backed
₹10,450 - ₹12,780
Base: ₹7,850 + PA Cover
₹7,05,000 - ₹7,82,000
Depreciation: 5% (1 yr old)
93.42%
Avg Settlement: 16 days
Claims FY23-24: 4.6 lakh
National Insurance Company Ltd.
Motor Private Car Comprehensive
Network: 4,000+ garages | Government Entity
₹10,280 - ₹12,650
Base: ₹7,750 + Basic Add-ons
₹7,02,000 - ₹7,80,000
Depreciation: 5% (1 yr old)
92.85%
Avg Settlement: 17 days
Claims FY23-24: 5.8 lakh
Reliance General Insurance Co. Ltd.
Private Car Package + Prime Care
Network: 5,500+ garages | Express Claims
₹11,420 - ₹13,990
Base: ₹8,600 + RTI Cover
₹7,11,000 - ₹7,89,000
Depreciation: 5% (1 yr old)
97.22%
Avg Settlement: 10 days
Claims FY23-24: 6.9 lakh

Data Methodology & Sources:

  • Claim Settlement Ratios: Sourced from IRDAI Annual Report 2023-24, representing the percentage of claims settled against total claims received
  • Premium Calculations: Based on comprehensive policy for 1-year-old Maruti Suzuki Swift VXI (1197cc), registered in Mumbai (Zone A), with 20% NCB
  • IDV Ranges: Calculated using IRDAI depreciation schedule (5% for 1-year-old vehicle) from manufacturer's listed price of ₹7.5 lakh ex-showroom
  • Settlement Duration: Average time from claim intimation to final settlement, data from insurer quarterly disclosures to IRDAI
  • Network Garages: Total authorized cashless service centers across India as per insurer websites (updated November 2024)
  • Add-on Premiums: Zero Depreciation (₹1,800-₹2,500), Engine Protection (₹800-₹1,200), NCB Protection (₹600-₹900), Consumables (₹500-₹800)

*Premium rates are indicative and subject to change based on individual risk assessment, vehicle condition, driving history, location, and selected add-ons. Always compare quotes directly from insurers for accurate pricing. Third-party premium component (₹2,094 for vehicles not exceeding 1000cc, ₹3,416 for 1000cc-1500cc) is fixed by IRDAI and constant across all insurers.

Why Car Insurance is Critical

Rising Repair Costs

Modern vehicles incorporate advanced technology and expensive parts. A minor accident can cost ₹50,000-₹1,50,000 in repairs. Comprehensive insurance covers these costs, protecting your savings from unexpected depletion.

Third-Party Liability

If your vehicle causes injury or property damage to others, you're legally liable. Third-party claims can run into lakhs or even crores. Insurance provides unlimited third-party liability coverage, protecting your assets from legal claims.

Natural Disasters

India experiences floods, cyclones, earthquakes, and landslides regularly. Own-damage coverage includes natural calamities, ensuring your vehicle is repaired or replaced even after severe weather events without financial burden.

Theft Protection

Vehicle theft rates remain significant in urban areas. Comprehensive insurance covers complete vehicle loss due to theft, reimbursing you with the IDV amount so you can purchase a replacement vehicle without financial loss.

Statistical Insights (India - 2023-24)

  • Over 4.6 lakh road accidents reported annually, resulting in 1.6 lakh deaths
  • Average claim amount for comprehensive policies: ₹35,000 - ₹45,000
  • Third-party claims averaging ₹2.8 lakhs per incident
  • Approximately 38,000 vehicles stolen annually across major cities
  • 68% of insured vehicles carry only mandatory third-party coverage
  • Average claim settlement time reduced to 12-15 days with digital processes

Car Insurance Buying Checklist

Check these essential features before choosing the right car insurance policy.

IDV

Insured Declared Value (IDV)

Choose the right IDV for your vehicle to ensure adequate compensation in case of theft or total loss.

Cashless Garages

Cashless Garage Network

A wide network of cashless garages allows hassle-free repairs without paying repair bills upfront.

Zero Depreciation

Zero Depreciation Cover

Zero depreciation add-on ensures full claim payout without deducting depreciation on car parts.

Claims

Claim Settlement Process

Choose insurers known for fast and transparent claim settlement to avoid delays during emergencies.

Engine Protection

Engine Protection

This add-on protects against engine damage caused by waterlogging or oil leakage.

Roadside Assistance

Roadside Assistance

Get support for breakdowns, towing, flat tyres, and emergencies anywhere in India.

No Claim Bonus

No Claim Bonus (NCB)

Enjoy premium discounts for every claim-free year, reducing your insurance costc over time.

Third Party Cover

Third-Party Liability Cover

Mandatory by law, this cover protects you against legal liabilities arising from third-party injury or damage.

Eligibility Criteria for Car Insurance

Vehicle Requirements

  • Valid Registration Certificate (RC) from RTO
  • Vehicle should have valid PUC (Pollution Under Control) certificate
  • Fitness certificate for vehicles older than 15 years
  • No major modifications without RTO approval
  • Commercial vehicles require commercial policy

Owner Requirements

  • Minimum age: 18 years to purchase insurance
  • Valid driving license for the vehicle category
  • PAN card for premium above ₹50,000 (as per IT rules)
  • Aadhaar card for identification and address proof
  • Previous policy details for renewals

New Car Insurance

  • Must be purchased within 14 days of vehicle delivery
  • Comprehensive coverage is strongly recommended
  • Dealer may offer insurance, but comparison shopping saves money
  • Long-term policies (2-3 years) offer convenience and savings
  • IDV is set at invoice value for brand new cars

Renewal Eligibility

  • Can renew anytime within policy expiry date
  • 15-day grace period for renewals (but no coverage during this time)
  • Lapsed policies require vehicle inspection before renewal
  • NCB preserved if renewed within 90 days of expiry
  • Change insurer during renewal without losing NCB

Documents Required for Purchase

For New Vehicles

  • Vehicle invoice copy from dealer
  • Temporary registration number
  • Valid driving license of owner
  • PAN card copy
  • Address proof (Aadhaar/Passport/Utility bill)

For Renewals

  • Expiring/expired policy copy
  • Vehicle Registration Certificate (RC)
  • Valid driving license
  • NCB certificate (if changing insurer)
  • Claim history from previous insurer

What Is Covered in a Car Insurance Plan?

A comprehensive car insurance policy protects you from financial losses arising from accidents, theft, and unforeseen damages to your vehicle.

Own Damage Cover

Covers repair costs for damages to your car caused by accidents or collisions.

Third-Party Liability

Covers legal liabilities arising from injury, death, or property damage to a third party.

Theft of Vehicle

Provides compensation if your vehicle is stolen or suffers total loss.

Natural Calamities

Covers damages due to floods, earthquakes, storms, cyclones, and landslides.

Man-made Disasters

Protection against damages caused by riots, vandalism, fire, or explosions.

Personal Accident Cover

Provides compensation for accidental injury or death of the car owner-driver.

Cashless Repairs

Allows cashless vehicle repairs at authorized network garages.

Engine Protection (Add-on)

Covers engine damage caused by water ingress or oil leakage.

Zero Depreciation Cover

Ensures full claim settlement without depreciation deductions on parts.

Roadside Assistance

Provides help during breakdowns, towing, flat tyres, or battery issues.

What Is Not Covered in a Car Insurance Plan?

While car insurance provides financial protection, some situations are excluded as per policy terms.

  • 🛞 Normal wear & tear of tyres, brakes, and car parts.
  • 🚫 Driving without a valid licence or with an expired licence.
  • 🍻 Accidents caused under the influence of alcohol or drugs.
  • ⚙️ Mechanical or electrical breakdown not caused by accidents.
  • Intentional or deliberate damage to the vehicle.
  • 🚓 Use of vehicle for illegal activities or commercial purposes.
  • 🌍 Accidents outside the geographical area mentioned in the policy.
  • 🔑 Key loss or tyre damage unless relevant add-ons are purchased.
  • 🌧️ Engine damage due to water ingress without engine protection add-on.

Key Factors to Consider Before Buying a Car Insurance Plan

Buying car insurance is essential to protect yourself against financial losses arising from accidents, theft, and legal liabilities. Considering the following factors carefully will help you select the right car insurance policy.

Why Compare Car Insurance Plans Online?

Comparing car insurance plans online helps you find the right policy that offers maximum protection for your vehicle at an affordable price.

Common Myths About Car Insurance

Many vehicle owners misunderstand car insurance due to common myths. Let’s clear the confusion and understand the actual facts.

Third-Party Insurance Is Enough

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Third-party insurance is the minimum legal requirement in India and covers only legal liabilities towards a third party in case of an accident. It does not cover damages to your own vehicle such as accident repairs, fire damage, vandalism, or natural disaster losses. A comprehensive insurance policy includes third-party liability and also protects your car against theft, flood, cyclone, collisions, fire, and more, offering complete peace of mind.

Older Cars Don’t Need Insurance

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Even older vehicles are exposed to the risk of accidents, theft, natural disasters, and third-party liabilities. Repairing an old car can still cost a significant amount, especially if major parts are damaged. Additionally, insurance is legally mandatory for every vehicle under the Motor Vehicles Act, regardless of its age. Insurance protects both your finances and your legal standing as a vehicle owner.

Car Insurance Covers Mechanical Breakdown

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Standard car insurance policies do not cover engine failure, electrical breakdown, or normal wear and tear unless they occur due to an accident. These damages are your responsibility. To protect against high repair costs, especially in premium or modern cars, you can opt for add-ons like Engine Protection Cover and Zero Depreciation Cover for extended financial security.

Claims Always Increase Premium

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Not all claims lead to a premium increase. Insurance companies consider your driving history, frequency of claims, type of claim, city of use, and IDV (Insured Declared Value) while calculating renewal premiums. Small cosmetic repairs can be paid from your pocket to retain No Claim Bonus (NCB) and keep premiums low. Add-ons like NCB Protection also help maintain discounts even after a claim.

Zero Depreciation is Not Necessary

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Without Zero Depreciation, the insurer deducts depreciation on replacement of parts, especially bumper, windshield, plastic fittings, fibre panels and rubber components, reducing the payout significantly. A Zero Depreciation Add-on ensures the insurer pays the full repair cost without depreciation cuts. This add-on is highly recommended for new cars, expensive cars, and cars used in heavy traffic conditions.

Insurance Can Be Bought Only Through Agents

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Today, buying car insurance online is faster, easier, and more transparent. Online platforms allow you to compare multiple insurers, premiums, claim settlement ratios, and add-on covers before buying. The process is fully digital, with instant policy issuance and doorstep claim support, often at a lower premium because you avoid paying agent commissions.

Frequently Asked Questions

Third-party insurance is the mandatory minimum coverage that protects you against legal liabilities arising from damage to third-party property or injury to third-party individuals. It does NOT cover damage to your own vehicle.

Comprehensive insurance includes third-party coverage PLUS own-damage coverage for your vehicle due to accidents, theft, fire, natural disasters, and vandalism. It also includes personal accident cover for the owner-driver. While more expensive, comprehensive insurance provides complete protection for your vehicle and peace of mind.

Car insurance premium is calculated based on multiple factors regulated by IRDAI:

1. IDV (Insured Declared Value): The current market value of your vehicle. Higher IDV = higher premium.

2. Vehicle Details: Make, model, cubic capacity, fuel type, and manufacturing year significantly impact premium rates.

3. Location: Registration city affects premium due to varying accident rates, theft rates, and repair costs across zones.

4. NCB: Claim-free years earn No Claim Bonus discounts ranging from 20% to 50%.

5. Add-ons: Optional covers like zero depreciation, engine protection, roadside assistance increase premium.

6. Deductible: Choosing voluntary deductible (₹2,500-₹15,000) reduces premium by 15-25%.

IDV (Insured Declared Value) is the maximum amount you'll receive if your vehicle is stolen or damaged beyond repair (total loss). It represents the current market value of your vehicle, calculated as manufacturer's listed selling price minus depreciation based on vehicle age.

Higher IDV means higher premium but better coverage. Lower IDV reduces premium but may result in inadequate compensation during claims. You cannot arbitrarily set IDV - insurers follow IRDAI guidelines and provide an IDV range (usually ±10% of calculated value).

IDV impacts claim settlement: If repair costs exceed 75% of IDV, it's declared a total loss. Always choose IDV close to your vehicle's actual market value for fair compensation.

Step 1: Immediate Action - Inform your insurer within 24-48 hours via helpline, mobile app, or email. For theft, file FIR immediately; for accidents with injuries, obtain police panchnama.

Step 2: Documentation - Collect claim form, driving license copy, RC copy, policy copy, repair estimates/bills, photographs of damage, FIR copy (for theft/major accidents), and police report if applicable.

Step 3: Inspection - Insurer's surveyor inspects damage and estimates repair costs. For cashless claims at network garages, this happens before repairs. For reimbursement, after repairs.

Step 4: Approval & Settlement - After document verification, claims are approved within 7-15 days. Cashless: garage receives payment directly. Reimbursement: amount transferred to your account after submitting original bills.

No Claim Bonus (NCB) is a discount reward for not filing claims during the policy year. It encourages safe driving and applies only to own-damage premium (not third-party component).

NCB Scale: 1 claim-free year: 20%, 2 years: 25%, 3 years: 35%, 4 years: 45%, 5+ years: 50%

Maximizing NCB:

• Avoid claiming for minor damages (below ₹5,000-₹10,000) - pay out of pocket to preserve NCB

• NCB is linked to owner, not vehicle. Transfer NCB when buying a new car

• Protect your NCB with NCB Protection add-on (allows 1-2 claims without losing bonus)

• Renew policy before expiry - NCB lapses if renewal delayed beyond 90 days

• Keep NCB certificate when switching insurers - it's proof of claim-free history

Standard car insurance policies exclude certain situations and damages:

General Exclusions:

• Driving without valid license or under influence of alcohol/drugs

• Consequential damages (loss of earnings, depreciation beyond policy terms)

• Wear and tear, mechanical/electrical breakdowns

• Damage to tires unless vehicle also damaged

• Driving outside geographical area (India, Nepal, Bhutan, Pakistan, Bangladesh, Maldives, Sri Lanka)

Own Damage Exclusions:

• Intentional damage or negligence

• War, nuclear risks, terrorism (unless covered under STFI)

• Using vehicle for racing or unauthorized commercial purposes

• Damage when vehicle is used by unauthorized driver

Always read policy wordings carefully. Many exclusions can be covered through add-ons.

Zero Depreciation Cover: Most valuable add-on. Insurer pays full claim without deducting depreciation on parts replaced. Ideal for new cars (up to 5 years old). Increases premium by 15-20% but saves 30-50% on claim settlement.

Engine Protection: Covers engine damage due to water ingression, oil leakage, or hydrostatic lock. Critical for areas prone to flooding. Premium increase: 3-5%.

Return to Invoice: Pays difference between IDV and invoice price in case of total loss/theft. Useful for new cars. Premium increase: 10-15%.

Roadside Assistance: Provides towing, flat tire replacement, emergency fuel, key lockout service. Premium increase: 1-2%. Often bundled free with premium policies.

NCB Protection: Allows 1-2 claims without losing NCB. Premium increase: 3-5%. Worthwhile if you have high NCB (35%+).

Consumables Cover: Covers cost of consumables (engine oil, coolant, nuts, bolts) during repairs. Premium increase: 2-3%.

Yes, car insurance can be transferred to the new owner when you sell your vehicle. This is actually mandatory - the insurance must be transferred or the buyer must purchase new insurance immediately.

Transfer Process:

1. Seller and buyer jointly submit transfer request to insurance company

2. Required documents: Original RC, insurance policy, new RC in buyer's name (after RTO transfer), NOC from previous insurer, sale agreement, forms from insurer

3. Insurance company updates policy records with new owner details

4. No additional premium charged for transfer (unless tenure extends)

Alternative: Instead of transferring, the buyer can terminate the existing policy and purchase a new one. The seller receives refund for unused premium period (minus charges). The buyer then gets NCB benefits on their new policy if applicable.

Seller's NCB: When you sell your car, your NCB remains with you (not the policy). You can use it when buying insurance for your next vehicle, even if there's a gap of up to 90 days.

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