What is the Difference Between Third Party Insurance and Comprehensive Car Insurance?
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 |
Comprehensive Insurance |
|
Compulsion |
Mandatory as per Indian Motor Tariff 2002 for all car owners |
Not mandatory but recommended for car owners |
|
Coverage Extent |
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. |
|
Cost |
Relatively cheaper than a comprehensive policy |
Relatively expensive than third party liability only policy |
For further reading:
How is Zero Depreciation Cover Different From Comprehensive Car Insurance?
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.
