What Is the Coverage of Car Insurance?

01/20/2021

Car insurance is a must for all car owners in India. In other words, it is a legal requirement for all vehicles to have at least the third-party motor insurance policy to become legally eligible for driving the vehicle in the Indian roads.

When it comes to coverage, car insurance comes with two types of plans to choose from: third-party liability only cover and comprehensive cover. The third-party policy is mandatory by law and it offers coverage to a third-party in the event of the death or injury to a third party in case of an accident where your car was at fault. It also offers compensation against any property damage to a third-party due to your vehicle. Note that this policy doesn't offer any coverage to the owner of the vehicle or the vehicle itself.

The comprehensive policy, on the other hand, is optional. It's up to you to go for this plan. It covers both third-party legal labiality as well as any damage to your vehicle, including the theft of the vehicle. It is advisable to go for this plan since it offers cover for both third-party and own damage.

Third Partly Policy Coverage

The liability only motor insurance policy covers the vehicle owner's legal liability claims to pay compensation for the followings:

  • Death of a third party person due to an accident.
  • Bodily injury of a third party
  • Damage to any third party property.
  • Owner-driver personal accident coverage up to 15 lacs.
  • Covers third party legal liability in case of third party injury, death, or property damage.

Comprehensive Policy Coverage

Comprehensive car insurance is the best motor insurance plan that you should consider. The policy covers the following.

  • Terrorist Act.
  • Strike and riot.
  • Any damage or loss to the car while it is in transit through road, lift, inland waterway, rail, elevator, air, etc.
  • Damage from landslide/Rockslide
  • Earthquake (Fire and Shock) Damage.
  • Housebreaking, burglary, theft.
  • Damage to your vehicle due to fire, self-ignition, lightning, explosion.
  • Malicious Act.
  • Inundation, Flood, Typhoon, Hailstorm, Hurricane, Cyclone, Storm, and Tempest
  • Accidental external means.

Apart from these two types of car insurance covers, there are various add-on covers available in exchange for a little premium. Add-ons offer an additional layer of protection to your vehicle. Meanwhile, you can click here to compare and find the best car insurance policy online.

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