Car Insurance
Car Insurance Benefits
Everything You Want To Know
In the event that you own a vehicle in India, it is mandatory to get it guaranteed under a valid insurance contract. A vehicle insurance contract covers the monetary obligation which emerges in the event that the guaranteed vehicle harms any outsider or harms any outsider property. In addition, assuming that the inclusion of the strategy is extensive, the misfortune endured by the vehicle because of mishaps or some other catastrophes is likewise covered. The Engine Vehicles Act, 1988 order each vehicle to be protected before running on Indian roads is permitted. Thus, of course, vehicle proprietors need to put resources into appropriate engine insurance contracts for their vehicles. The vehicle proprietor is the policyholder who is expected to pay the superior on a yearly premise.
Types of Car Insurance Policies
Different Types of Car Insurance Policies
Comprehensive Cover : This policy covers the mandatory third-party liability as well as the damages suffered by your own car due to natural or man-made causes.
Long term liability cover : This policy offers third party liability coverage for a continuous period of 3 years. The policy is available only for new cars that are required to carry a long term third party cover as per IRDAI’s latest rules.
Third-party liability : This is the mandatory cover as required by the Motor Vehicles Act, 1988. This policy provides coverage against third party legal liabilities. It pays the required compensation for any death, injury or damage of property to any third party.
Standalone own damage cover : This policy covers only the damages that your car suffers. Third-party liability coverage is not allowed. A standalone car insurance policy can be purchased when you already have third-party liability insurance or you can buy them both simultaneously.
Bundled plan : A bundled policy is available for new cars. This policy allows third party liabilities for 3 years and own damage cover for one year.
CAR INSURANCE PLAN COVERAGE INCLUSIONS & EXCLUSIONS
Here’s a look at the coverage available as well as the instances when the car insurance policy does not pay a claim –
INCLUSIONS
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Damages suffered due to accidents
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Damages suffered when the car is in transit by rail, road, water or air
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Any third party injury or death which is a result of an accident involving your car
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Damages suffered due to natural calamities like floods, earthquakes, lightning, etc.
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Damages suffered due to man-made disasters like fire, theft, explosion, terrorism, etc.
EXCLUSIONS
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When you are driving without a valid license
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When you are driving under the influence of alcohol and/or drugs
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Depreciation and normal wear and tear of the car and its parts
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Deliberate accidents or attempted suicide
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Consequential losses
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When you are using the car in violation of its usage limitations
