Insurance companies in India offer two types of policies – comprehensive and third-party. While the third-party cover is cheaper and covers only third-party damages, the comprehensive cover offers wider coverage and is hence, slightly expensive.
There are several key factors that come into play when you have to choose a car insurance scheme. One such point of concern is deciding whether to choose a comprehensive car insurance scheme or a standalone third-party car insurance scheme. In India, insurers sell both comprehensive covers and standalone third-party covers. While comprehensive motor policies cover both personal damages and third-party liabilities, standalone third-party car insurance cannot be used for own personal damages.
Essential Components Of Comprehensive Car Insurance Policy:
A comprehensive car insurance policy is the highest form of protection you can buy for your vehicle. It is always recommended to have comprehensive insurance even though the law does not mandate it. With a comprehensive insurance plan, you can be rest assured that the potential losses due to accidents are easily taken care of. Some of the essential components of comprehensive car insurance are as follows:
- It provides protection against damages from accidents, even if you are at fault.
- It provides end-to-end protection for a vehicle even against theft or damages caused by natural disasters.
- Add-on covers like zero depreciation and engine protection are also available along with comprehensive insurance covers.
- No additional premium is required for covering third-party liabilities in the case of accidents.
Reasons to Upgrade to Comprehensive Car Insurance:
Comprehensive is also known as “other than collision” coverage because it normally includes coverage for:
- Theft
- Vandalism
- Glass damage (such as a broken windshield)
- Damage sustained from hitting an animal or bird
- Damage from falling objects or missiles
- Fire incidents
- Floodwaters
- Damage sustained due to severe weather or natural disaster — such as windstorm, hail, hurricane, tornado, etc.
- Damage to a third party.
Without comprehensive coverage, a car insurance cover cannot be made if your vehicle receives damage that is not due to collision. For high valued cars, this type of insurance is desirable as an additional protection.
Third-Party Car Insurance:
Third-party car insurance offers cover against any legal liability to a third party caused when you are at fault. It covers any damage or injury caused by the insured, to another person or property. A third-party liability cover is made mandatory in India under the Motor Vehicles Act, 1988. There is no specific limit on the liability coverage for injuries or death of a third party. However, liability coverage for property damages sustained by a third party is capped at Rs.7.5 lakh.
