Even though there are over 295 million vehicles in India, car insurance isn’t any kind of conversation for most people, let alone an important one. But why is that? Well, you could say that the primary reason is a lack of awareness. Since it is a legal mandate to buy insurance in our country, it is crucial to know how it works.
There are three types of car insurance policies in India. Today, we are going to talk about comprehensive insurance, a popular kind. It provides extensive coverage for you and your vehicle. It provides financial protection against both third-party and personal damage liabilities.
Here’s an example to help you understand the insurance plan better:
Let’s assume that Rishi, a 24-year-old from Delhi, bought comprehensive insurance for his car. But 2 weeks later, Rishi gets into an accident (which was mostly his fault) that leaves his as well as the third-party person’s car damaged. Now, it falls on Rishi to pay the expenses incurred by the other individual involved in the incident and to also get his car repaired.
You might think that this will leave Rishi with monetary losses, but since Rishi purchased comprehensive insurance (which, let’s be honest, was a smart move), the insurance provider will cover all the expenses incurred by both Rishi and the third-party individual.
Comprehensive car insurance offers financial protection against bodily injuries and property damage as well. This means that if Rishi’s car accident also caused an injury to a third party or damaged someone’s property (a shop or kiosk, for example), the insurer will offer monetary compensation.
Since a comprehensive policy covers third-party liabilities, you will fulfil the legal requirement of having car insurance because only third-party motor insurance is mandatory in India.
So, if you’re a car owner, especially an overprotective one, buy a comprehensive insurance. But don’t stop reading just yet. We’re now going to discuss the features, benefits, inclusions, and exclusions of comprehensive car insurance. Stay tuned!
- A comprehensive insurance plan offers financial coverage against both personal damage and third-party liabilities.
- If you have comprehensive car insurance, you will fulfil the legal mandate, and you don’t need to buy an individual third-party insurance policy.
- Since comprehensive insurance provides complete protection, the premiums for this policy type are comparatively higher.
- The premium for comprehensive insurance depends on several factors, including the technical specifications of your vehicle, Insured Declared Value (IDV), geographical location, coverage benefits, riders, and a few personal aspects like your age and profession.
Get Your Wheels Fully Covered: Know About the Features of a Comprehensive Policy
If you’re planning to buy comprehensive insurance, it is best to know the policy’s features, which are:
Coverage for Third-Party Liabilities
As we explained earlier, comprehensive insurance provides financial coverage for third-party liabilities. This means that if you (or your car) end up causing damage to another individual’s vehicle or property, the insurance provider will cover the expenses incurred by the third party. Similarly, if the individual sustains bodily injuries, the insurer will pay for the medical expenses. However, in case of disability or death of a third-party person, the insurance provider will be liable to provide monetary compensation.
Coverage for Personal Damage
In addition to covering third-party liabilities, comprehensive insurance also included personal damage liabilities. This means that if you end up damaging or losing your car due to an accident, natural calamity, fire, or theft, the insurance provider will provide monetary assistance. Similarly, if you sustain any bodily injuries due to the accident, you can file a claim for the medical expenses.
Personal Accident Cover
If your comprehensive insurance policy includes a personal accident cover, your family will be eligible to receive a death benefit in the unfortunate event of your demise. Moreover, if an accident, natural disaster, or related mishap leaves you with a disability, the insurance company will pay the entire cover amount as compensation. However, while most comprehensive insurance policies include personal accident coverage, others offer it as an add-on cover.
Availability of Add-On Covers
Although comprehensive car insurance offers wide coverage, you can choose to increase it by opting for add-on covers, also known as riders, by paying an additional sum. For instance, you can buy riders for roadside assistance, towing assistance, engine protection, zero depreciation, and more. The best part? The premiums for add-on covers are nominal, so you won’t be burning a hole in your pocket!
Protecting You Against Every Crash: Comprehensive Car Insurance Benefits
Now that you are familiar with the features of comprehensive insurance, let’s look at some benefits of investing in the policy:
Offers All-Round Protection
Since comprehensive car insurance offers coverage for both third-party liabilities and personal damage liabilities, you get all-round protection. So, whether an accident results in damage or loss of your vehicle (or property) or a third-party individual’s vehicle (or property), the expenses incurred by both parties will be covered by the insurance provider.
Eliminates the Need to Buy a Third-Party Policy
As you now know, as per section 146 of the Indian Motor Vehicles Act, 1988, buying third-party car insurance is a legal mandate in India. However, buying a comprehensive policy eliminates the need to buy a third-party insurance policy. So, not only do you meet the legal mandate, but you also receive complete financial protection.
You Can Buy Comprehensive Insurance Online
If you’re someone who loves staying indoors and only shops online, you’d be glad be to know that you can purchase even comprehensive car insurance online. Better yet, the process is quick, easy, hassle-free, and requires half the time and effort. Plus, there isn’t as much paperwork or documentation involved, and you can also renew your comprehensive policy online.
A No Claim Bonus (NCB)
Today, No Claim Bonus (NCB) is a popular inclusion in most car insurance policies, especially comprehensive plans. As per this feature, a pre-decided sum (or percentage of your total sum insured) is added to your coverage amount if you make zero claims throughout the year. It is a great way to enhance your policy’s coverage, and you only need to be a responsible driver in return.
Avail the Service Benefits
When you purchase comprehensive insurance, your policy comes with a few service benefits, such as 24 x 7 customer service support, quick online renewals, a wide network of garages, cashless claims, paperless claims, and much more. So, when buying a comprehensive policy, make sure you select a plan offering the maximum number of service benefits.
Did You Know
In 2019, potholes were a significant contributor to road accidents in India, resulting in close to 5,000 casualties. While the number of accidents caused due to potholes has decreased over the years, it was particularly high during this period.
Ignorance Isn’t Always Bliss: Know the Inclusions and Exclusions of Comprehensive Insurance
A comprehensive insurance plan, like all other motor insurance policies, has several inclusions and exclusions that affect the premium of your plan.
While these largely depend on the insurance provider and the specifics of the insurance plan, it is best to know the most common inclusions and inclusions of a comprehensive policy – which have mentioned in the table below:
|Inclusions of Comprehensive Car Insurance||Exclusions of Comprehensive Car Insurance|
|Accidental damage to the insured vehicle||Wear and tear due to prolonged use of the vehicle|
|Vehicle damage caused as a result of natural calamities like earthquakes or floods||Electrical or mechanical failures, or both|
|Theft of the insured car||Vehicle damage resulting from alcohol or drug abuse|
|Third-party liabilities, including vehicle damage, bodily injuries, and property damage||Loss or damage due to war or nuclear perils|
|Car damage arising from fires, explosions, or other human causes||Vehicle damage if found driving with an invalid license|
|Personal accident coverage||If the car is damaged outside the policy’s geographical limits|
|Add-on covers/riders||Loss or damage if a private vehicle is used for commercial purposes|
Word to Remember
Zero Depreciation Rider
A zero-depreciation rider is a popular add-on cover that can be purchased with comprehensive insurance policies. If you have this rider, the insurance provider will settle the claim without subtracting your vehicle’s depreciation value from the sum insured. However, this cover is typically only applicable for cars that are no older than 5 years.
We guess that covers everything there is to know about comprehensive insurance policies in India. While you might think that purchasing third-party car insurance is sufficient, think again.
In our country, road accidents are a common occurrence, causing thousands of deaths each year. So, don’t just consider third-party liabilities; also consider your and your loved ones’ safety and well-being.
You could say that comprehensive insurance is a better choice than third-party car insurance, as it provides financial coverage for both own damage (stand-alone) and third-party liabilities.
Yes, it is possible to convert your third-party insurance plan into a comprehensive one by contacting your insurance provider. However, you will be required to pay a higher premium, and the insurer might inspect your vehicle again.
Yes, the model, variant, and other technical specifications of your vehicle will affect the premium of the comprehensive insurance plan.
Although this depends on which insurance provider you choose, some common riders include zero depreciation cover, roadside assistance, towing assistance, daily allowance, engine protection, passenger cover, and more.
Yes, today, you can easily buy comprehensive insurance online by visiting the website of an insurance provider of your choice. Even better, you can also renew your policy online.