Car Insurance Inclusions – Everything You Must Know

Driving a brand-new car out of the showroom is a dream come true for many. However, it isn’t as simple as it seems. First, the finances need to be sorted after which the registration of the vehicle begins. While the process is managed by the vehicle dealer, you as a buyer need to look into buying a car insurance policy. Only and only when all these three requirements are ticked off, you can take the delivery of your car.

As crucial is the buying process considering various requirement of you and your family, similar is the case when you buy car insurance policy. Hence, it is vital to know of the different policies that can be bought and the coverage they offer.

To start with understanding cars insurance plans, there are two type of policies that are available—a third-party cover and a comprehensive cover. The regulator, Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory to have a third-party cover for the protection it offers. On the other hand, a comprehensive policy is an optional upgrade from the third-party plan. You can visit the official website of IRDAI for further details. Here are some of the inclusions that each of these plans offer:

  • Protection from third-party liabilities

Accidents can occur either due to your fault or other third person. In case you are the party at fault, the liability to compensate such aggrieved persons rests upon you. The result of an accident can be either property or damage or injuries. A third-party cover available as a standalone plan or a part of comprehensive can help compensate for such damages and injuries. For a third party car insurance, the property damage is capped at ₹7,50,000 while there is no specify capping for the compensation towards injuries. The amount of such compensation is decided based on a judgement of the tribunal court. * Standard T&C Apply

  • Coverage for own damage

Accidents do not mean damages to third person only. It also results in damages to your car. While the third-party cover protects the damages and injuries to other person, an own damage cover can help insure against the repairs required for your car. If your policy has a cashless claim facility, then the repairs must be carried out at one of the network garages. * Standard T&C Apply

  • Protection against disasters, both natural and man made

Comprehensive policies not just provide coverage against accidents, but other risks too. A natural calamity might end up causing severe damages to the car where floods can cause water damages, earthquake might uproot trees and more. Not just natural disasters, man-made events like riots also cause property damages in which vehicles are always a first. Hence, a comprehensive plan extends its coverage towards these damages. * Standard T&C Apply

  • Personal accident (PA) cover

A personal accident cover is part of the mandatory insurance coverage that is required when you buy car insurance online. The basic PA cover protects the owner-driver while passengers and paid drivers can be insured using add-on covers. * Standard T&C Apply

These are some inclusions of a car insurance policy based on which type of insurance policy you buy. Also, make sure to read the policy documents thoroughly for detailed information regarding the policy inclusions. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.