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Explore The Types Of Car Insurance Policies In India

Written by Saad Ahmad
Updated On Oct 17, 20232 min read
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Let's look at some of the many sorts of automobile insurance policies available in India.

Car insurance is a mechanism that protects you from financial losses that may arise as a result of an accident or other tragic occurrence involving your vehicle. It is critical to get a basic automobile insurance policy since the Indian Motor Tariff considers it a requirement.

Explore The Types Of Car Insurance Policies In India

Types of Car Insurance Policies Available in India

However, before choosing a vehicle insurance policy, you should research the many types of car insurance plans available. You can simply choose an appropriate policy depending on your budget and requirements after you have a better grasp of the various insurance plans. There are three forms of automobile insurance:

1. Insurance for Third-Party Vehicles

Liability-only coverage is another name for third-party insurance. This is a fundamental insurance policy that is required in India to prevent legal ramifications. This coverage protects you from any financial obligations you could have to a third party as a result of an automobile accident. This policy covers the following:

  • Property damage caused by a Third Party -

Damages to a third-property party's The maximum amount of compensation is Rs. 7.5 lakh.

  • Injury-Related Medical Costs -

The cost of treating third injuries, parties such as bodily injuries, and temporary and permanent disability.

  • Death Indemnification -

In the event that a third-party individual dies, his or her family receives compensation.

2. Own-Damage Insurance on Its Own

The standalone own-damage auto insurance policy is designed to cover solely your car's own damage or loss in the event of an accident or other unforeseen event such as theft, fire, or natural disaster. This coverage compensates you for your car's own-damage losses in the following scenarios:

  1. Accidental Damages - In the event of a traffic accident, the cost of repairing the damages to your automobile is covered.
  2. In the event of a total loss due to fire or explosion, you will be reimbursed according to the Insured Declared Value (IDV) of your vehicle.
  3. Total Loss As A Result Of Theft - If your automobile is stolen, the insurance will cover the whole loss by providing you with the IDV.
  4. Natural Catastrophes - Compensation for damage to your vehicle caused by natural calamities such as floods, earthquakes, hurricanes, typhoons, hailstorms, lightning, or landslides.
  5. Man-Made Calamities - Losses sustained as a result of man-made calamities such as robbery, airstrikes, vandalism, riots, or terrorist acts.

3. Insurance for a Complete Car

Many insurance companies refer to comprehensive coverage as a "package plan." This plan includes coverage for both third-party and own-damage claims. This coverage includes the following features:

  • It includes all of the circumstances covered by standalone own damage insurance.
  • This coverage also protects you from third-party liability if your automobile is involved in an accident. It also covers third-party harm or death.
  • Third-party property damage is also covered by a compensation sum of up.

Add-Ons Covers

When you buy a standalone own damage insurance policy or a comprehensive insurance policy, you're also buying add-on coverage. These optional supplementary coverings are available for a little fee. You may broaden the scope of your automobile insurance coverage by adding these coverages to your comprehensive or standalone own-damage plan. Add-ons can be chosen based on your budget and needs. Zero Depreciation, NCB Protection, Passengers' Personal Accident Cover, Roadside Assistance, Return to Invoice, Engine Protection Cover, and many other options are available as add-ons.

Take Away

Car insurance comes in a variety of forms, but you must choose one that meets your needs and is financially stable. Keep in mind the different forms of auto insurance while making a car insurance selection. We hope the information provided above assists you in locating a plan that meets your requirements.

Do read - Inclusions And Exclusions In A Car Insurance Policy

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 Saad Ahmad
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 Saad is a marketing guru and has some exciting knowledge to share about the motor and related industry. Saad in his last work with a major Indian yet global conglomerate has made direct contributions to the Insurance sector. In his free time, Saad likes to play badminton and listen to melancholic music

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