Knowledge Centre

Do You Have Enough Coverage for Car Insurance

Every mistake in life can cost you something, and even small errors may cost time and some money to correct them. But when the mistake is a major one, the cost and consequences are more serious. For example, if you are involved in a serious car accident and you have partial or total fault, then it can cost you a lot of money to pay for the damages and injuries caused by your mistakes.

We all make mistakes, but we need to take reasonable steps to make sure that our mistakes do not become a financial burden on us. Here comes the role of car insurance. Auto insurance or car insurance is designed to protect you and your vehicle from unforeseen risks. Insurance protects against losses incurred because of unavoidable instances. It protects you in case of theft and accident. When you have auto insurance, you do not have to worry about things like repair, replacement cost, and legal liabilities because all these things are handled by the insurance company based on the coverage and limits you have chosen.

Coverage which car insurance offers are:

Third Party Liability Coverage

In case you meet with an accident and it is concluded that the accident took place because of your fault or negligence then liability coverage plays an important role. It covers damage to third party property. Liability coverage also includes injury or death of third party. As per the recent Supreme Court Order on September 1, 2018, it has mandatory for all the cars that have been bought after September 1, would need to compulsorily have a third party policy of 3 years tenure.

Comprehensive coverage

Comprehensive insurance includes third party liability cover which provides insurance coverage from any kind of bodily injury or damage to third party and also the features of the own damage plan where you get insurance coverage for your car from natural calamities like floods, earthquake, tornado and also from manmade calamities like riots, arson, civil unrest.

Own Damage Cover

In this car insurance policy you can have coverage for risks arising from natural events like storm, tornado, floods and earthquake and also from manmade events like theft, burglary and damage in transit. As per the circular from Insurance Regulatory and Development Authority of India (IRDAI), effective September 1, 2019, car insurance companies would be able to offer separate standalone Own Damage cover policy.

Therefore in third party liability you get covered for losses arising from bodily injury to the third party and also for any damage to the third party property. It is suggested that one goes for Comprehensive insurance plan to ensure that car gets insurance coverage against large pool of risks.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales


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