For motor vehicle owners in India, not having insurance for their vehicles is not an option. Irrespective of whether a vehicle is personal or commercial, all car owners within the nation are mandated to have at least a minimum level of insurance by law, as clearly specified under the Motor Vehicles Act of 1988.
Today, having a car of your own is a necessity. With EMI payment facilities, purchasing a car has become easier however,what still remains a major cause of worry for most people is upkeep of their vehicle, post purchase.
Now while fuel expense is something that car owners can still try to curb, things such as accidental damage to the vehicle are beyond their control, and stifling both in terms of money and mental peace. Thankfully, there are various car insurance plans out there in the market that aid car owners in managing such expected financial losses.
Standard coverage offered by a comprehensive motor insurance policy
Car insurance policies are mutual arrangements between a buyer and an insurance company, wherein the buyer pays a certain amount of money to the company in return for coverage against loss and damage to the car. Basically, there are two types of motor insurance policies available in the market –third party liability and comprehensive cover.
Out of the two, a comprehensive motor insurance policy is known to provide a wider coverage to car owners. Among the covers that a comprehensive motor insurance policy generally provides, the most prominent ones are: –
Protection to Vehicle against Damage or Loss
A comprehensive car insurance policy protects your car financially against losses or damage occurring due to an expansive number of reasons. Some of these situations include: –
- Damage to the vehicle due to self-ignition, fire or lightning
- Damage or loss due to theft, break-in, riot, malicious activities, terrorism, road rage and so on
- Damage to the vehicle occurring due to natural calamities such as earthquake, flood, landslide, storm, tornado etc.
- Damage caused to the vehicle during transportation via road, air, water or rail
Personal Accident Cover
Vehicular accidents can be greatly damaging not just to the vehicle but also to those who are within it. Getting caught up in one such accident could affect you physically in several ways, not to mention the mental trauma that would accompany the same. You could receive serious injuries, damage or even lose a limb, undergo temporary or permanent damage to your body (partially or totally) or in the worst case scenario, lose your life. Even when you survive, life-threatening scenarios in vehicular accidents, you can still be incapacitated to work. A comprehensive car insurance plan with its personal accident cover protects you financially against these risks mentioned above.
Third Party Liability
People, other than those travelling with you, but in your immediate surroundings, are also at risk when an accident involving your vehicle occurs. Claims related to damage or loss of property and/or injury or death, raised by third party subjects you to both legal as well as financial liabilities.
Having a comprehensive car insurance policy will also fetch you coverage against claims made by third parties, in regards to accidents.
Other Kinds of Coverage that you can expect with a Motor Insurance Policy
Even though comprehensive motor insurance policies have a lot to offer to policy buyers, sometimes even those are not enough. So, to help out policyholders, several insurance companies offer additional covers that can be purchased alongside comprehensive motor insurances through the payment some extra premium. Add-on covers also known as riders, enhance the overall coverage that you extract put of your motor insurance policy.
Chief among such add-on covers are –
Zero Depreciation Cover– Depreciation refers to the damage your vehicle undergoes due to ageing. Insurance companies calculate this based on the rate at which your vehicle deteriorates and when a claim is made, they pay you an amount by applying depreciation rate to the current market value for new parts. So, the difference between the depreciated part’s value and the current market value is borne by the policyholder.
However, that is not the case when you are backed up by a zero depreciation cover. This add-on cover fetches policyholders a comprehensive coverage (full claim amount) without any depreciation rate factored in.
Road-Side Assistance– Having a road-side assistance cover will ensure necessary help to you in event of an emergency that leaves you stranded in some remote location.For various cases right from flat tire, no fuel, technical issues to severe accidents, most insurers offer 24/7 road-side assistance cover that includes – fuel assistance, accommodation and taxi benefits.
Engine and Electronic Circuit Cover– As is suggestive from the name, this add-on cover protects the engine and electronic circuits in your car financially against damages. So if your car were to get stalled due to water ingression, oil leakage or gear box damage; your insurance company will pay for it. Damages caused due to the above mentioned, especially to electronic circuits could incur massive repair costs on you, hence purchasing this add-on alongside your standard car insurance policy is a smart step.
Key Replacement– Under this cover, expense originating from the loss/misplacement/theft or damage of your car keys is taken care of by your insurance company. This sort of cover generally includes replacement of lock, key and lockset, cost of transportation of vehicles to the nearest garage and labour cost, in case your keys are stolen/lost.
Loss of Personal Belongings– Another good add-on, this allows policyholders to report claims related to apparent loss or theft of their personal belongings such as electronic equipment or laptop from a locked car.
The availability of motor insurance online has made it easier to buy motor insurance these days. You can research about various motor insurance policies online, learn about their inclusions and exclusions from company websites, and also compare them to find the best online motor insurance policy for yourself. You can also purchase the above-mentioned add-ons alongside your motor insurance online.
