When vehicle owners think of a car insurance policy and its benefits, some just think of the base reason that it covers the cost of damages caused to the vehicle following an accident. However, there’s more to a motor insurance policy than just covering the cost of damages caused to the vehicle. Before getting to things you never knew were covered under a car insurance policy, let’s iron out the difference between a third-party insurance policy and what is known as a comprehensive insurance policy.
A third-party insurance policy is a basic motor insurance policy and is mandatory as per the Motor Vehicles Act, 1988. A third-party insurance policy covers only the damages caused to the third party involved in the accident. This basic insurance policy covers the cost of the car damages as well as the medical expenses of the third party in the case of disability, injury or even death.
That said, a comprehensive car insurance policy offers coverage to both the first party and the third party for damages caused to the car as well as the medical expenses. With just these benefits scratching the surface of what a motor insurance policy covers, we’ve listed a few things that you probably never knew a motor insurance policy covers.
Listed below are some important aspects of a car insurance policy you probably didn’t know:
For policyholders with a comprehensive car insurance policy, they can claim coverage for damages caused to their car arising from natural calamities such as earthquakes, floods, landslides, and lightning. In addition, one can claim for coverage of damages caused to the car from any sort of fire, or from riots, strikes, or any sort of terrorist activity.
If in case your car breaks down or you meet with an accident, a car insurance policy will cover the cost of the towing charges till the garage up to a certain limit as stated in the policy terms and conditions.
When it is time to renew your policy, you can now do it online on the official website of your car insurer. You just need to choose the renew option and make the payment for the car insurance renewal. You do not need to submit any documents or visit the insurance branch to renew your car insurance policy.
If you thought a car insurance policy only covers damages caused to the exterior or the engine of the car, then you are wrong. By purchasing an add-on cover to cover the car accessories, all the fittings and accessories in your car will be covered following an accident.
Be it a third-party insurance policy or a comprehensive car insurance policy, following an accident or a mishap, the motor insurance policy will cover the damages caused to the car of the third party as well as any medical expenses due to injury or disability caused to the third party following an accident.
Your car might be old, but you can get a maximum claim coverage by having a zero-depreciation add-on cover. When a claim is made, the insurance company will offer coverage for the damages caused to the car based on the depreciation factor or the current insured declared value (IDV) of the car. With the zero-depreciation add-on cover, there will be no depreciation factor involved in the claim, and one will get the maximum claim coverage possible.
If your car does break down in the middle of nowhere, you can call for roadside assistance anytime and the insurance company will arrange for assistance or tow your vehicle at their cost. The motor insurance policy covers it all.
Most basic comprehensive car insurance policies do not cover damage to the engine as it is a costly affair. However, if you purchase an engine protect add-on cover, the cost to repair your engine following an accident will be covered by the insurance company - saving you thousands of rupees. In addition, the add-on cover offers coverage for gearbox failures as well as engine oil leaks.
This add-on cover offers coverage not only for the policyholder but also all the occupants in the car when the accident occurs. The accident shield cover will cover the medical expenses of all the passengers in the car when the accident occurs.
Tax benefits are not applicable for personal car insurance policies, but for businesses that have availed a commercial vehicle insurance policy, they can avail tax benefits for the cost as part of their expense.
For those who wish to purchase a motor insurance policy, ensure you read the fine print of the policy document on purchase or before purchasing the policy, to know exactly the benefits of the policy you are buying. As listed above, a motor insurance policy comes with a number of benefits that will save you thousands of rupees in case of an accident or any other circumstance that can be covered by the policy.
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