Third Party & Comprehensive Car Insurance

List of Banks Providing Comprehensive Car Insurance:

What is Third-Party Car Insurance? 

A third-party car insurance policy is one of the most basic and mandatory insurance policies for your car as per the Motor Vehicles Act. These car insurance policies are essential as they cover you from financial loss caused due to any damage to a third-party car or property. These insurance policies do not cover any damage caused to you or your car. 

What is Covered in Third-Party Car Insurance? 

Here is the list of coverage offered under third party car insurance policy: 

1. Property damage to third party: This insurance plan offers coverage against legal liability up to Rs.7.5 lakh caused due to the damage to third party property by your car. 
2. Death or injury caused to the third party: Facilitates coverage against the compensation for death or injury caused to the third-party due to your car. 
3. Coverage for personal accident of the driver or the owner: Provides coverage against the compensation for accidental death or disability to the owner of the insured car’s driver or owner. 

What is not Covered in Third-Party Car Insurance? 

The following are the coverage provided under Third Party Car Insurance: 

1. Driving without valid license holder: For learner’s license holder, claims will not be covered if the individual was driving without having someone with valid license holder in the front passenger seat. 
2. Driving in drunk condition: Any damage caused to your car due to driving in drunk condition will not be covered under the third-party insurance policy. 

1. Damages caused to one’s own car: The third-party insurance plan covers only the damages caused to the third party and does not cover the damages of one’s vehicle. 

Benefits of Third-Party Car Insurance:

The following are the key benefits of availing of third-party car insurance policy: 

1. Offers coverage against traffic fines: Not having third-party car insurance policy will lead to penalty as this is mandatory for vehicle owners to have it while driving on Indian roads. This policy protects the insured from financial loss caused due to traffic fines. 
2. Covers against third-party liabilities: In case you damage third-party property or vehicle, then buying a third-party car insurance policy will protect you from financial loss.  

1. Provides legal assistance while driving on Indian roads: As per the Motor Vehicles Act, third-party car insurance policy is essential to drive safely on Indian roads and provides legal assistance whenever needed. 

What is Comprehensive Car Insurance? 

A comprehensive Car Insurance policy is one of the most basic and preferred car insurance policies. These insurance policies cover not only third-party liabilities, such as damage to third-party cars or property but also provide financial support during any situation that leads to damage caused to you and your car. 

What is Covered in Comprehensive Car Insurance? 

The following is the list of coverage facilitated by the Comprehensive Car Insurance policy: 

1. Disability compensation or accidental death coverage for owner or the driver of the car 
2. Loss due to third party, such as: 

1. Property damage 
2. Death of the driver or the owner 
3. Physical injury due to accident 

1. Other damages caused due to following reasons: 

1. Accidents 
2. Theft of car 
3. Man-made disasters or civil disturbances, such as vandalism, riots, and others 
4. Natural disaster or adverse weather condition, such as flood, hurricane, storm, or other form of disasters 

1. Damage due to explosion, fire, or self-ignition 

What is not Covered in Comprehensive Car Insurance? 

The following are the exclusion in comprehensive car insurance policy: 

1. Driving without license: Claims will not be covered under comprehensive car insurance policy if the owner drives the car without a valid driving license. 
2. Damages caused due to consequences of accident: The policy does not cover any claims if the damage caused to the car is due to the consequences of an accident. 

1. Driving without valid license holder: Insurer will not cover any claim under comprehensive car insurance, if an individual with learner license driving without any valid license holder in the front passenger seat. 
2. Drunk driving: Claims for accidents caused due to drunk driving will not be covered under comprehensive car insurance policy. 
3. No add-ons: Policyholders cannot claim the benefits of any add-ons if not purchased while buying the comprehensive car insurance policy. 
4. Damage due to negligence: Damage due to any negligence, such as damage caused if a car is taken out during a natural disaster, is not covered under comprehensive car insurance policy. 

Benefits of Comprehensive Car Insurance:

The following are some of the key benefits of availing a comprehensive car insurance policy: 

1. Offers add-ons for enhanced coverage: For enhanced coverage, some of the comprehensive car insurance policies offer add-ons that enable customers to customise their insurance policy.  
2. Cost-effective insurance plan: Comprehensive car insurance plans are way more cost-effective than other car insurance plans even after offering higher premium rates. The benefits and coverage offered by these plans make these insurance plans much more affordable than others. 

1. Provides coverage against natural disasters: These car insurance plans protect your four-wheeler from unpredictable damage caused due to natural calamities, such as cyclone, earthquake, or flood. 
2. Compensates the loss caused due to car theft: Comprehensive car insurance plan compensates for the financial loss that happens due to the loss of your one of the most valuable possessions due to theft. 
3. Offers zero depreciation cover: The value of four-wheeler drops over the years, but opting for comprehensive car insurance plan protects you from the depreciation value. Opt for zero-depreciation cover under this plan to receive an amount worth for a new car. 
4. Customers can opt for breakdown assistance: Breakdown assistance is one of the add-ons offered by the comprehensive car insurance plan. Under this add-on plan, you can call your insurer for help if you are stuck midway, and your car broke down. You will receive immediate assistance which does not even get counted as claim. 
5. Provides coverage against car damage: Comprehensive car insurance plans provide coverage against unfortunate loss or damage caused due to any accident, fire, collision, or any other similar situations. 

1. Third-party liabilities are covered: One of the most vital benefits of these plans is that they not only cover damage to you and your car, but also protect you against the loss caused to third-party liabilities. 

Comprehensive Car Insurance of Old Car 

The details about comprehensive car insurance of old car are mentioned below: 

1. Comprehensive car insurance provides coverage for both old and new cars. 

1. Old cars can also get comprehensive car insurance if the vehicle is still in use. 

1. Before applying for comprehensive car insurance consider the age of the car and how long the owner plans to use the car. 

Reasons to Purchase a Comprehensive Car Insurance Policy 

The following are the reasons to purchase a comprehensive car insurance policy: 

1. Covers own car damage due to theft, natural and man-made disaster, fire, accident, etc., apart from providing mandatory third-party liability cover. 

1. Provides No Claim Bonus discount which is granted as a reward for not making a claim during the policy tenure and the discount can be availed during policy renewal. 

1. Enhances policy coverage by providing the option of buying add-on cover at an extra premium. 

1. Provides the advantage of cashless claim at the time of claim settlement, thereby ensuring repair of car in an authorised network garage without making any payment. 

1. Provides compensation of up to Rs.15 lakh as a compulsory accident coverage against death or disability of the owner or driver of the insured car due to accident. 

Difference between Third-Party & Comprehensive Car Insurance: 

The following is the list of difference between third-party and comprehensive car insurance policy: