Car insurance is an agreement between the owner of the car and the insurance company; where the car owner agrees to pay certain premium amount with a promise by the insurance company to cover for the loss, repair or damage caused to the insured vehicle in case of accident or mishap. It is mandatory under the law of Motor Vehicle Act of 1988, to own a vehicle insurance. Car insurance covers various damages that may occur to you or the owner or third party. It also comes with add-on covers that enhance your basic policy by giving you an extensive cover that cater your needs. If you are buying a new car, the car dealers will have tie-ups with various insurance providers. So it is easy for you to buy an insurance along with the purchase of the car.
Comprehensive policy: This is a standard policy that provides an extensive coverage under various situations for the policyholder. Also known as ‘other than collision’ cover, this plan covers third-party liabilities due to body injuries and/or accidental death/property damage, own liabilities arising out of personal losses and/or property damage from natural calamities and/or man-made calamities. The premium for this plan is high due to the extensive insurance coverage the plan provides. Insurers usually provide a number of add-ons that you can opt for under the comprehensive plan. Few add-ons are zero-depreciation, engine cover, Key replacement, roadside assistance, anti-theft device, etc.
Third-party Liability cover: Also known as third-party insurance, this plan provides cover against all the legal liabilities that arises due to damages or injuries caused to a third-party person or property by the insured vehicle. Personal losses covered under this plan include accidental death, body injuries, permanent disability, etc. This insurance cover can be availed at a low premium as it covers only third-party liabilities. This cover allows you to raise a claim under the ‘no-fault liability claims’ category. Here, you are allowed to raise the claim without having to provide proof that suggests your negligence caused the accident. Sometimes insurers provide personal injury protection cover as an add-on for this insurance policy.
IDV=Manufacturers listing price – Depreciation
There are many add-ons as per the requirement of the policyholder. You can avail these benefits for extra premium amount on your standard policy. These will enhance the cover making it more secure for the vehicle. Here are the add-on covers that are available for car insurance:
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