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Different Types of Car Insurance Policies Available In The Market

Written by Udit Varshney
Updated On Oct 15, 20232 min read
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A car policy could be a required demand for your car if you own one. It is mandated that every car on Indian roads ought to carry a sound policy on that to run de jure. If your car doesn't have an insurance policy and you're caught, you'd face penalties within the variety of fines and even imprisonment in extreme cases.

When you buy a new car, you protect it with all of your ability. You go to great lengths to protect it safely and in good working condition. Your car insurance takes a step forward to assist you with this. Your car insurance protects you and your car from unnecessary stress in the event of an accident, and it guarantees that your car provides the best possible care at all times.

Different Types of Car Insurance Policies Available In The Market

Difference Types Of Car Insurance Policies Available In The Market

Here are the different Car Insurance Available in the Market:

Third-Party

This policy protects you from third-party financial obligations that can occur in the following circumstances.

  • If your car kills anyone.
  • If your car causes physical harm to another person,
  • If you cause any harm to the property of a third party 

Under either of the above circumstances, you will be responsible for the third-party's loss. This financial responsibility is protected by a third-party liability insurance policy, which compensates the third-party on your behalf. According to the provisions of the Motor cars Act of 1988, third-party car insurance is required. Every car in India is mandated to have this basic insurance coverage in order to reimburse any third party who is injured by the car.

Standalone Own Damage Insurance Policy

This is a new form of car insurance policy that is valid for cars purchased on or after September 1, 2018. The policy only includes own loss coverage, which only covers the car's damages or theft. The package would not have third-party coverage. The coverage only applies to cars that already have a legitimate third-party insurance policy. Own damages incurred in the following situations is covered under this plan - 

  • Natural disasters
  • Man-made disasters like riots, strikes, terrorist activity, etc
  • Fire, explosions
  • Theft of car
  • Damage in transit

Comprehensive Insurance Policy

Although a third-party liability policy is required and protects any third-party liability, it does not cover the financial loss you incur if your car is damaged or stolen. In such situations, they expected you to cover the financial costs of the car's damage or theft. A robust strategy comes to your rescue and protects your car from potential harm. This is referred to as "own damage cover." A comprehensive car insurance policy protects you against all third-party liabilities and financial loss incurred by your car as under standalone own-damage cover. A comprehensive car insurance plan thus provides an all-round coverage to the car.

Also Read

Benefits of Engine Protection Cover in Car Insurance!

How You Can Handle the Car Insurance Claim Rejections?

Take Away

If you want to drive on Indian highways, you'll need a car insurance policy. So, familiarise yourself with the various car insurance policies on the market and then choose the policy that offers the most appropriate and comprehensive coverage for your car, ensuring that the car insurance policy adequately covered any financial losses incurred.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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Written by Udit Varshney
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 Udit has built B2C segments across various industries and has had significant contributions to the insurance sector. Udit in his last stint helped set out the last mile vertical, which soon became the go-to logistics name for daily needs, In his free time, Udit likes to write and listen to poetry.

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