WHAT IS COVERED IN CAR INSURANCE POLICY

As per Indian laws it is mandatory to insure your vehicle. Any vehicle that is getting driven on Indian roads has to have an insurance. And why not? Despite precautions, you could meet unfortunate emergencies on the road like accidents, breakdowns or natural disasters as well. Wouldn’t you wish for a worry-free experience while driving your car?The best solution to free one of the financial burden in such situations is car insurance. Under all types of car insurance plans, protection is offered for financial losses arising from any unfortunate events on the road, involving your car, subject to the specific terms and conditions of your policy. So, what is covered in car insurance policy? Let’s first throw some light on what are the different types of car insurance coverage in India.

Types of insurance coverage

Insurance coverage means the kinds of protection available under different plans to get secured with insurance in India. Along with the basic plans there are options of Add-ons to enhance them with various protection. The basic types of car insurance plans accessible in India include;

Third-Party Liability cover - The Third-Party Liability cover is compulsory in India as per the Motor Vehicle Act 1988. It safeguards from cost of repairs or replacement of the damaged third-party car, cost of hospitalization or treatment of third party and liabilities arising out of death of third party in case of a road accident. Third-Party Liability cover is affordable, covers for property damage as well as bodily injury of third-party. Also, it helps fulfil the legal obligation of car insurance in the best possible manner.

Collision or Own Damage cover - The Collision or Own Damage cover is optional unlike the third-party liability car insurance, which is mandatory. When you opt for collision or own damage car insurance cover, the cost of repairs to your car that has been damaged in case of a road accident is reimbursed to you. The premium for such plan is calculated through age and insured declared value of the car.

Personal Accident cover - In personal accident cover, when your car is in an event of accident, the plan secures you- the owner or driver of the car. Personal accident cover protects you and reimburses for any medical expenses after an accident involving you and your car.

Zero Depreciation insurance - In the case of car damage where parts need to be replaced, the insurer will consider the depreciated value of the parts for claim settlement. A Zero Depreciation cover helps get the whole claim amount without accounting for any depreciation in the expenses.

Comprehensive car insurance - Comprehensive car insurance is a whole-some coverage that protects for liability for third parties, damage to own vehicle, personal accident cover, and damage from natural disasters like storms, floods, fire or theft. This coverage gives the highest level of protection. By installing anti-theft devices in your car, the high premium on such insurance plans can be decreased.

 

Car insurance add-ons

Along with a car insurance plan, opting for Add-ons gives extended coverage and helps get enhanced protection. The different Add-ons available for car insurance include;

 

• No Claim Bonus
• Return to Invoice
• Roadside Assistance cover
• Repair of glass, fibre orplastic parts
• Daily Allowance
• Emergency Transport
• Hotel Expenses
• Key Replacement
• Engine security
• Tyre safeguard
• Consumables expenses
• Loss of personal belongings

 

Car insurance exclusions

Though car insurance helps protect for all events on the road and safeguard against any unexpected incident, there are certain limitations to car insurance plans offered by numerous different insurance companies. The exclusions of car insurance plans include;

• Wear and tear of car
• Normal Ageing of car
• Breakdown of electrical or mechanical parts
• Impaired tires and tubes of car
• Damage to car driven by unlicensed driver
• Car damage due to driving under influence of drugs or alcohol
• Car damage due to war or nuclear attack

 

Conclusion

As you know the different car insurance policies available, you can compare and choose the best fit for you based on your requirement and budget. There are benefits of buying car insurance policies online, getting discounts, smooth claims settlement and also having the comfortable option of cashless garage facilities. Remember to be aware of all the terms and conditions of any car insurance plan you opt for.

FAQs – Frequently asked questions.

Let's take a look at some frequent queries on Car insurance policy coverage;

Q1. Has comprehensive car insurance plan got the best coverage?

Yes, the comprehensive car insurance provides cover for your car, driver, passengers, third-party liabilities, including third-party car, driver, passengers and property.

Q2. Is collision cover to be bought based on car age?

Yes, the collision cover should be bought based on car age, a new car is at more risk of collision and damage. While for old cars the collision cover is lower.

Q3. Does personal accident cover for car passengers and driver?

Yes, personal accident cover provides protection for car driver, passengers, and damage, regardless of whose fault in driving and resulting in accident.

Q4. Does Third-party liability cover give protection for own car?

No, Third-party liability cover only provides protection for damage to Third-party car, injury to third-party driver or passengers and also for death of third-party car driver or passengers but not for own car cover.