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Purchasing a vehicle represents a major financial decision for most individuals. As such, properly safeguarding this valuable asset and its passengers through comprehensive insurance coverage is critical. This article explores the key forms of automotive insurance that Indian vehicle owners should strongly consider to ensure complete protection on the country’s often chaotic roads.
Though pricier than basic third-party plans, opting for comprehensive policies with ample add-ons offers peace of mind by offsetting expenses stemming from accidents, natural disasters and theft. Read on to learn about crucial inclusions that help substantially cut out-of-pocket expenses while claiming vehicle insurance.
Page Contents
Third-Party Liability Only Cover
All vehicle owners must have basic third-party liability coverage in India. This mandatory liability cover helps pay for any significant injuries suffered by the third party or repairs needed for the damaged vehicle/property. It aims to provide some financial cushioning against such legal claims up to a predefined insured limit.
However, the key thing to note is that basic third-party policies only cover external parties affected in an accident involving the at-fault insured driver’s vehicle. Relying solely on liability plans leaves owners vulnerable to heavy losses since vehicle repairs and occupant insurance get ignored.
Own Damage (OD) Cover
Beyond basic third-party, it is prudent to opt for OD insurance covering repair costs or total loss stemming from:
- Accidents when the policyholder’s vehicle suffers damage
- Attempted theft, burglary or malicious acts by external elements
- Terrorist activities, strikes, riots
- Natural disasters like floods, storms, lightning, earthquakes
- Fire or explosion
Own damage premiums are calculated based on the Insured Declared Value (IDV) of the vehicle, and relevant depreciation is applied while processing claims.
Personal Accident Cover
Shockingly, just 5% of Indian vehicle owners invest in personal accident policies despite over 150,000 annual fatalities on roads, as per reports. Along with property damages, consumers must account for sizable medical care costs and potential loss of income that accompany injuries.
Personal accident cover bridges this protection gap via:
- Lumpsum payouts in case of dismemberment, loss of sight/hearing or death due to accidents
- Reimbursing hospitalisation charges above the base medical insurance plan’s coverage
- Weekly cash benefits for recovery duration
- Ambulance transportation and evacuation costs
Comprehensive Car Insurance
Bundling own damage and third-party plans under a single comprehensive policy ensures end-to-end protection at a lower premium compared to individual plans. Comprehensive coverage is highly recommended since it offsets repair bills and liabilities.
Add-on Coverages
Insurers offer optional riders to augment financial safeguards across scenarios not covered under standard comprehensive or standalone own-damage policies. Key value-adds include:
Zero Depreciation Cover
It waives off depreciation deductibles while processing own damage claims, ensuring maximum reimbursements for parts replacement. This add-on helps restore vehicles to pre-accident condition without incurring high out-of-pocket expenses.
No Claim Bonus (NCB) Protection
Opting for NCB protection retains accrued no-claim bonuses even if you raise a claim. This allows policyholders to continue availing discounted premiums on renewals despite registering claims.
Advantages of Buying Car Insurance
Switch Insurer and Cover
With spiralling claims and premium hikes, the IRDAI makes switching providers and plans convenient via standard portability guidelines adopted by insurers. This empowers owners to shift plans seamlessly towards lower premiums or improved offerings every 3-5 years sans fresh policy expenses.
Security
Holistic plans offer financial, medical and liability assistance across accidents, disasters, and thefts – scenarios where owners are otherwise left stranded. Robust coverage and add-ons bring immense mental relief against vulnerabilities, adding to the enjoyment of vehicle ownership despite rising risks.
Conclusion
With prudent add-ons and ample coverage limits, comprehensive policies make vehicle ownership affordable and safer for Indian motorists. Assess damage risks and opt for covers priced reasonably based on vehicle value. Ultimately, there is no price tag for peace of mind and financial security in case of road mishaps. Stay protected with tailor-made plans this season!
