highlights
In third party insurance, the damage caused by the vehicle to a third party is compensated.
Comprehensive protection including third party insurance is available in the comprehensive plan.
There is an option to choose from a variety of add-on covers in a comprehensive policy.
New Delhi. If you are thinking of buying or renewing motor insurance for car or bike, then you must know about third party insurance and comprehensive policy. Because in the event of an accident or damage to the vehicle, the conditions attached to these plans are very important and protect you from every major loss by giving you adequate risk protection.
Under third party insurance, financial compensation is provided for the damage caused to a third party by your vehicle during an accident. Under the Motor Vehicles Act, this insurance is mandatory by law. On the other hand, in the comprehensive plan, the liability of all other losses including third party protection is with the insurance company. Let us know in detail about these two…
Third Party Insurance Cover
Under the third party insurance cover, the insurance company pays the damages in case of damage caused by your vehicle to any other person or his property. Under the Motor Vehicle Act, it is mandatory for every vehicle in the country to have third party insurance. Since whenever vehicles are on the road, there is a possibility of accident.
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In such a situation, if unfortunately during the accident your vehicle causes injury or death to a third person or damages his vehicle and property, then you will be responsible for compensating the financial loss caused to him. In such situations, the utility of third party insurance increases as it compensates for this potential loss.
How does third party insurance work?
- If the vehicle causes bodily injury to any other or third person
- The injured person dies in a car accident.
- Your car damages the property of a third party.
- In any of these unfortunate circumstances, you will have to inform the insurance company about the claim.
The insurance company will provide compensation for the financial loss to the third party.
Comprehensive Insurance Policy
Comprehensive insurance plan ie comprehensive insurance protection, under this type of plan all the necessary protection is provided to your car or vehicle. In these, comprehensive protection is given to protect against losses due to natural calamities, theft, accidents, fire etc.
The special thing is that in comprehensive insurance, the protection of third party liability is available. On the other hand, if you are not satisfied with the protection provided in this policy, then you can also customize it, that is, you can also take advantage of many optional benefits as a rider. In these, from zero depreciation cover to emergency assistance cover, you can avail many add-on covers. However, you have to pay an additional premium for each add on cover.
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Zero depreciation cover As the vehicle gets older, its value and its components depreciate. Therefore, in case of an accident, the insurance company pays the compensation by reducing the depreciation. But in zero depreciation cover, the insurance company pays in full and you do not have to bear the loss of depreciation.
Engine Protection Cover- In this, the facility of repairing or changing the new engine is available in case of failure or shutdown of the engine of the car or other vehicle.
No Claim Bonus Protection Cover- In motor insurance, if no claim is made during the insurance period, then the customer gets a rebate in the premium of the new insurance policy under the no claim bonus. But, in spite of making a claim under the No Claim Bonus protection cover, you get the benefit of the No Claim Bonus in the premium for the next policy.
Road Side Assistance Cover- If your vehicle gets damaged due to accident or any other incident, then the insurance company will provide necessary help to you on the spot. These include the facility of repairing the vehicle to arranging another vehicle for the customer.
Return to Invoice Cover- The compensation that the insurance company pays in case the vehicle is stolen or involved in an accident is based on the current market value of the vehicle less the purchase price. But under the return to in voice add on cover, the insurance company will compensate the full cost of your vehicle.
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Tags: car insurance, Insurance, insurance company
FIRST PUBLISHED : November 20, 2022, 10:23 IST
