Comprehensive Car Insurance
What Is A Comprehensive Car Insurance Policy?
A comprehensive car insurance plan is a package policy that offers coverage for the loss and damage sustained by both parties involved in the accident/mishap. It includes comprehensive insurance coverage for the damages incurred by the insured vehicle as well as third-party liabilities. It is an all-inclusive comprehensive insurance coverage plan.
Policyholders can enhance the coverage of a comprehensive policy with the help of a number of add-on covers such as zero depreciation cover, NCB cover, Bi-fuel kit cover etc., which are available with it. Although a comprehensive car insurance policy is not mandatory by law unlike a third party only car insurance polic, it is nonetheless recommended.
What All Is Covered Under A Comprehensive Car Insurance?
- Own damages incurred by the insured vehicle in any road accident, natural/man-made calamity, theft, fire or any other mishap.
- Third party bodily injuries as well as death.
- Third party property damage
What is your car's brand?
Car Insurance for Popular Car Models
What All Is Not Covered Under A Comprehensive Car Insurance Policy?
- Depreciation/wear and tear of the vehicle.
- Mechanical or electrical breakdown of insured vehicle.
- Accident which occurred when the vehicle was being driven without a valid driving licence.
- Accident which occurred when the driver was under the influence of intoxicants.
- Any loss or damage due to mutiny war, or nuclear attacks and other events that are beyond compensation.
Comprehensive Car Insurance Vs Third Party Car Insurance
Comprehensive Car Insurance
Third Party Car Insurance
Comprehensive car insurance policies offer compensation for damage caused to the insured vehicle as well as the injury/death of a third party. It also offers coverage up to a maximum cap of Rs 7.5 lakh in case of third party property damage.
The third-party Car insurance plan offers compensation for injury/death of a third party( as decided by a court of law) and third party property damage (up to Rs 7.5 lakh).
A number of add-on covers such as Zero Depreciation Cover, Consumables Cover, etc. are offered along with a comprehensive car insurance policies against extra premium.
No such add-on covers are available for purchase with the third-party policies.
Comprehensive plans are comparatively costlier due to extensive coverage.
Third-Party policies are compared cheaper to comprehensive policies due to its limited coverage.
Add-ons For Your Car Insurance Policy
A car's value depreciates constantly with time. Thus, at the time of a claim settlement, the depreciated value of a car is deducted from the claim amount. However, by opting for a zero depreciation add-on you can shift the liability of the depreciation cost to the insurer and get the entire claim amount without any deduction of the depreciation sum. This add-on is generally available till the age of 5 years of car, however, the car age limit varies from insurer to insurer.
A No Claim Bonus (NCB) is a discount given by the insurer in the premium amount to a car insurance policy holder for not making a claim in the entire tenure of the four wheeler insurance policy. This discount is not available if the policy holder has made even a single claim. However, with the NCB cover, a policyholder will be entitled to receive an NCB discount despite having made a claim subject terms and conditions of insurance company. The NCB discount keeps on increasing with every claim-free year until it reaches 50%.
A car's engine is by default not covered under either a comprehensive or a standalone own-damage car insurance policy. And therefore, if it gets damaged due water-logging or oil leakage, your insurance company is not liable to pay for its damages. But, if you opt for the add-on known as Engine Cover, you can get your car's engine insured by the insurer for damages incurred due to water ingression as well as leakage of lubricants. Engine Cover is one of the most popular car insurance add-ons and is available against the payment of a nominal premium.
If you have a return to invoice cover added on to your comprehensive car insurance policy, you can claim the total ex-showroom price of your four wheeler, taxes and registration charges, in case of total loss. In case of total constructive loss (more than 70% of damage) or theft of your car, an insurance company pays the Insured Declared Value (IDV) of your car as compensation. However, this IDV is lesser than the actual amount paid by you at the time of purchasing your car. When you opt for the add-on called Return To Invoice Cover with your car insurance policy, the insurance company pays the total ex-showroom price of your car plus the taxes and registration charges incurred at the time of purchase, as the claim amount in case of total loss.