What is the Difference Between Third Party Insurance and Comprehensive Car Insurance?
Published On Sep 23, 2019, Updated On Feb 22, 2021
Let's learn about different car insurance plans.
Car insurance is one of the most popular and important general insurance plans. It insures you against financial liabilities that may arise due to any mishap or unfortunate event involving your car. The insurance coverage depends on the type of car insurance purchased by you. There are three types of car insurance - third party liability only policy, comprehensive policy and standalone own-damage policy.
Types of Car Insurance
1. Third Party Liability Only Car Insurance: It is compulsory for every car owner in India to have at least a third party liability only car insurance policy as per the Indian Motor Tariff 2002. It insures a car owner against only third party liabilities - both life and property.
2. Comprehensive Car Insurance: This car insurance policy comes with extensive coverage. Besides covering all the third party liabilities, a comprehensive plan also provides coverage for damages incurred to the insured's car, be it during a road accident, a natural disaster, fire, theft or any other mishap.
3. Standalone Own-Damage Policy: An own-damage car insurance policy provides coverage only for the damages incurred by the insured's car. Third-party liabilities are not included in this plan.
Third-Party Insurance vs Comprehensive Insurance
Points Of Difference
Third Party Insurance
Mandatory as per Indian Motor Tariff 2002 for all car owners
Not mandatory but recommended for car owners
Death/bodily injuries of third party - Unlimited/limited coverage. The compensation amount is decided by a court of law
Third-party property damage - Up to Rs. 7.5 lakh
Death/bodily injuries of third party - Unlimited/limited coverage. The compensation amount is decided by a court of law.
Third party property damage - Up to Rs. 7.5 lakh
Own damages of car - As per car’s IDV
Availability Of Add-on Covers
No add-on covers can opt with it
Add-on covers such as Zero Depreciation Cover, Engine Cover, NCB Protection, etc can be availed against an extra premium.
Relatively cheaper than a comprehensive policy
Relatively expensive than third party liability only policy
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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.