Vehical Insurance
Vehical insurance is essential for protecting vehicle owners from financial loss due to accidents, theft, or damage. It typically includes liability coverage, which safeguards against legal claims for injuries or property damage caused to others. Additionally, collision coverage addresses damages to the insured vehicle in the event of an accident, while comprehensive coverage offers protection against non-collision-related incidents, such as theft or natural disasters. Personal injury protection (PIP) ensures medical expenses for the insured and passengers are covered, regardless of fault. By choosing the right motor insurance policy, individuals can tailor their coverage to meet their needs and comply with legal requirements, providing peace of mind on the road.
Features of Vehical Insurance
Vehical insurance typically includes several key features, such as:
1. Coverage Types:
– Third-Party Liability: Covers damages to other vehicles and injuries to other people if you’re at fault.
– Collision Coverage: Pays for damage to your vehicle from accidents.
– Comprehensive Coverage: Protects against theft, vandalism, and natural disasters.
2. Personal Injury Protection (PIP): Covers medical expenses for you and your passengers, regardless of fault.
3. Uninsured/Underinsured Motorist Coverage: Provides protection if you’re in an accident with someone who lacks adequate insurance.
4. Deductibles: The amount you pay out-of-pocket before the insurance coverage kicks in, which can affect your premium.
5. Premiums: The cost of the insurance policy, which can vary based on factors like vehicle type, driver history, and coverage levels.
6. Add-ons: Optional features like roadside assistance, rental car coverage, and gap insurance.
7. No-Claims Bonus: A discount offered for claim-free years, encouraging safe driving.
8. Policy Limits: The maximum amount the insurer will pay for claims, which can vary based on the policy.
These features help customize coverage to meet individual needs and provide comprehensive protection on the road.
Types of Vehical Insurance
There are 3 types of Vehical Insurance :-
1. Third-Party Liability Only Cover
The Motor Vehicle Act 1988 mandates that every motorised vehicle on Indian roads should have a third-party liability only cover. The “third-party” in third-party car insurance is any property, person, or vehicle that sustains damage due to the actions of the insured while driving their vehicle. This is one of the more affordable kinds of insurance for cars in the country, as the scope of its coverage is limited.
These are the incidents that will be covered under third-party liability only cover:
- Damages to the third-party vehicle
- Damages to the third-party property
- cost of hospitalization and treatment of third parties
- Liabilities arising out of the deaths of third parties
Third-party car insurance will not cover damages or losses to the insured’s vehicle due to an accident, damages or losses to the insured vehicle in case of a natural calamity, or theft of the insured’s car.
2. Own Damage (OD) Cover
Under the collision damage cover insurance policy, the insured will be reimbursed for the cost of repairs to your damaged vehicle. The premium for these types of car insurance in India will be calculated based on the vehicle’s age and its insured declared value (IDV). The insured declared value of the car is nothing but its market value.
In the event that the cost of damages to your vehicle exceeds the current value of the vehicle, the insurance company will pay the current market value of the automobile in question. For older vehicles, the collision cover can be as low as possible. You must buy coalition cover if there is a lien on your vehicle.
The most important thing to keep in mind when opting for these car insurance coverage types is that the insured will get compensation from the insurance company only in case of an accident. So a collision damage cover is great for those who live in accident-prone pockets of the country or in cities that have dense traffic flow.
3. Comprehensive Car Insurance
As the name suggests, this is the most comprehensive type of car insurance you can choose for your automobile. The damage covered under a comprehensive insurance policy includes damage from third parties and damage to your own vehicle. It basically guarantees complete protection. Even though the price of these types of car insurance can be higher than that of a third-party liability-only cover, the range of protection offered against all the risk factors that you can face when your vehicle hits the road is unmatched with these types of car insurance in India.
One such unmatched coverage provided by the comprehensive insurance plan is protection against theft which is a feature missing in other kinds of insurance. This insurance policy can also protect your vehicle from:
- Natural Disaster
- Man-made calamities
- Fire
- Terrorist activites
Here are some of the scenarios a comprehensive car insurance policy will not cover:
- Damages to the car due to drunk driving or driving under the influence of substances
- Damages the car incurs while driving without a valid driving license
- Electrical and mechanical breakdown
- Usage-related wear and tear
- Damages to the car due to illegal racing or speeding
- Damages to the car due to rash driving
- Damages incurred when on foreign soil