It is mandatory for every person buying his own vehicle in India to buy a vehicle insurance i.e. motor insurance policy.
Types of Car Insurance: After the new rule of the Insurance Regulatory and Development Authority of India (IRDAI) came into effect from August 1, the obligation to take third party insurance + on-damage insurance in the package form for your vehicle has ended. Now on buying a new vehicle, the owner can take third party insurance and on-damage cover separately. Talking about the car, with the arrival of this new rule, buying a car will be a little cheaper. But do you know what is third party insurance and on damage insurance?
In fact, it is mandatory for every person buying his vehicle in India to buy a vehicle insurance i.e. motor insurance policy. This applies in the case of a car, two-wheeler or commercial vehicle. Driving a motor vehicle in a public place without insurance is a punishable offence as per the Motor Vehicle Act 1988. Talking about the car, there are 4 types of insurance policies for this, including third party insurance and on damage insurance. Let’s know about them in detail …
Third Party Insurance
Third-party insurance is a legal requirement for car owners. This type of insurance provides compensation for any harm or damage caused by your vehicle to other people or property on the road. It’s a way to protect yourself and others while driving Legal liabilities arising on you due to such an event are covered by this policy. In case of bodily injury or death caused by your vehicle, the person gets compensation from this insurance plan. But in this insurance there is no responsibility to compensate for any loss caused to the vehicle owner or driver. According to IRDA rules, it is mandatory to take third party cover for 3 years for a car and 5 years for a two wheeler.
own damage Insurance
The policy which is bought to compensate for the damage caused to the vehicle only, is called Own Damage Policy.In this type of insurance, the insurance company provides compensation to you. Your car insurance can help you avoid paying out of pocket for any damage to your vehicle by covering the repair costs. It’s a way to protect your vehicle and ensure you’re not left with a hefty repair bill. According to IRDAI, under the own damage section, the loss is covered under these circumstances:
- Fire, explosion, spontaneous combustion, lightning
- Earthquake
- Flood, Storm, Cyclone, Tornado, Thunderstorm, Inundation, Hail, Snowfall
- During travel by rail/road, inland waterways, lift, elevator or air
- Landslide/rock slide
- Burglary/robbery/theft
- Riot and strike
- Crash in external factors
- Malicious act
- Terrorist act
Comprehensive Policy or Package Policy
A Comprehensive Policy combines Third-Party Insurance with an Own Damage Policy. This means that it covers damage to other people and vehicles, as well as damage to your own car. With this policy, you can get compensation for any harm caused by your vehicle.IRDA has abolished the compulsion to take this long term package policy.
Now it will be optional for the vehicle owner to take third party insurance and own damage insurance in the package. From August 1, it will be necessary to take third party cover for 3 years for a new four wheeler and 5 years for a two wheeler. There will be two options for own damage cover. Firstly, the customer can take one year own damage cover bundled with third party insurance and secondly, can take two separate policies for third party and own damage.
Personal Accident Insurance
Personal accident insurance comes in handy for the physical damage caused to the driver in a car accident. Taking it is also mandatory like third party insurance. In this, apart from the driver and the other person sitting on the front seat, other passengers can also be included. If the car owner dies in an accident or in case of permanent disability, he / his family gets compensation.
With motor insurance in India, it is mandatory to take personal accident insurance of minimum 15 lakhs for the vehicle owner/driver and co-passenger. IRDAI has removed personal accident cover from motor insurance policies from January 1, 2019. That is, if the vehicle owner wishes, he can take both Motor Insurance Policy + Personal Accident Cover while buying the car. Alternatively, the personal accident cover can be taken separately from any other insurer as a general personal accident product. If you already have personal accident coverage of 15 lakhs or more, you don’t need to get compulsory personal coverage under your motor insurance. This means you’re already protected and don’t need to pay for additional coverage.
If the customer wishes, he can increase the benefits by adding some additional cover in motor insurance. As…
- Accessories cover
- Engine protection
- No Claim Bonus Protection
- Zero depreciation
- Roadside Assistance
- Return to Invoice etc.
