What Should I Know About Car Insurance In India
In India, Why Should You Purchase Car Insurance?
According to the legislation, car owners are required to have auto insurance for any vehicles they drive on Indian roads. Vehicle owners are legally responsible for any losses, damages, or bodily harm they cause to third parties or their property if they don’t have car insurance online.
Car Insurance Types:
There are two different automobile insurance plans available in India:
- Third-party car insurance is a type of fundamental auto insurance. It provides coverage for any losses or bodily harm caused by the insured vehicle to any third-party vehicle or property, subject to any applicable terms and conditions.
- According to its name, the comprehensive auto insurance policy offers a higher level of insurance protection. It covers both own damages to the insured vehicle and third-party liabilities. *
Car Insurance Add-Ons
Car insurance add-ons are also known as riders or additional riders for car insurance online.
Even though add-ons are very inexpensive, they expand the area of insurance coverage to meet the expectations of the insurance buyer. Remember that these extra riders are often only available for vehicles that are under five years old.
Many of the numerous motor insurance add-ons are listed below:
- Nil Depreciation Coverage: The value of a car depreciates over time. Policyholder claims are processed (in accordance with the terms and conditions that apply) once the appropriate depreciation has been taken into account. There is no depreciation if the policyholder chooses a nil depreciation cover. *
- Engine Protection Coverage – If the engine is damaged, the insurance company will pay for the necessary repairs or replacements. *
- Return to Invoice Cover: In the event of total damage, this coverage entitles the policyholder to the insured vehicle’s original on-road price. If a policyholder makes a claim within a policy year, he is not eligible to get NCB Protect Cover. By choosing this coverage, the policyholder can still qualify for the No Claim Bonus even after making a claim. *
- Consumables Coverage – Certain consumable components, parts, and materials, such as nuts, bolts, ball bearings, engine oil, air conditioner gas, coolant, and grease, are not covered by auto insurance policies. Consumables are now included in the insurance coverage thanks to this addition. *
A Comprehensive Car Insurance Plan’s Inclusions
The complete auto insurance policy typically offers the following protection to the policyholder:
- Damage brought on by riots, strikes, malicious acts, earthquakes, floods, and other natural disasters.
- Driver personal accident insurance
- Theft or loss of the insured car
- Liability for third parties
Exclusions From Comprehensive Automobile Insurance
Typically, the following coverage is excluded from comprehensive car (motor vehicle) insurance plans:
- Vehicle ageing and wear and tear
- Damage caused by intoxicating substances such as alcohol, narcotics, or any other
- Harm to property outside of India’s borders
- Damage done by a driver who is operating a vehicle without a legal licence
- Loss that follows
- Breakdown of the mechanical or electrical
- If a policyholder chooses certain additional riders, some exclusions may no longer apply.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.