There are two types of car insurances; third-party insurance and comprehensive insurance. Third-party insurance is a basic insurance as per applicable terms and conditions, it covers bodily injuries/ damage(s) or losses caused to any third-party vehicle/property by the insured vehicle and comes at a low premium. Comprehensive insurance has a wide range of coverage options including third-party liability as well as own damage to the insured vehicle.
The value of your insurance policy is determined by the Insured Declared Value (IDV) of your vehicle, which is the maximum insured sum amount the insurer can pay you. When you renew your motor policy after a year, your IDV will decrease because of the rate of depreciation that is applied to it.
Your Motor Insurance Must Cover:
● Loss or damage due to a natural and man-made calamity -
Natural calamities like earthquake, storm, cyclone, landslide, etc. and man-made calamities like burglary, theft, riot, strike, terrorist activities, etc. are covered.
● Personal accident cover -
In the event of a permanent disability or in the unfortunate circumstance of your death you can get coverage of up to 2 lakhs for any damage caused.
● Third-party legal liability -
By law, this cover protects you against the legal liability of accidental damages that have resulted in permanent injury or death of a third party. It also covers damage caused to any surrounding property.
Your Motor Insurance Does Not Cover:
- Driving while drinking or under the influence of drugs
- When driven by an uninsured person
- Damage due to war
- Deliberate loss/ damage
You can also opt for insurance add-ons to fulfill your individual insurance expectations. While add-ons come at a nominal premium, they are offered for the cars that are not more than 5 years old.
The Few Of Many Online Car Insurance Add-ons Are:
Return To Invoice Cover - In case of total damage, the cover entitles the policyholder to get the original on-road cost of the insured car.
Consumables Cover - There are a few consumable parts such as nuts, bolts, ball-bearings, engine oil, AC gas, coolant, grease that are not covered under the online car insurance policy. With this add-on, the insurance coverage is extended to consumables.
Nil Depreciation Cover - The value of your vehicle depreciates as it ages. When you file a claim, it is processed after deducting the applicable depreciation. If you opt for a nil depreciation cover, no depreciation is applied.
NCB Protect Cover - In case you file a claim in a policy year, you aren’t entitled to get it. Opting for this cover helps you to be eligible for ‘No Claim Bonus’ even if you filed a claim.
Engine Protection Cover - In case the damage is caused to the engine, the repair/ replacement expenses will be covered by the insurance provider.