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Anyone driving a car knows the importance of a car insurance policy. In India, having a car insurance coverage is obligatory by law. At least, one should have a basic insurance in place to be able to venture freely in his/her car on the roads of the country.
Depending on the product or insurance you choose to buy, the level of coverage differs. In this article, we are going to discuss the list of possible coverage offered by a car insurance policy in general.
But before we proceed further in the article, you might be interested in knowing what is insurance coverage.
An insurance coverage is the security offered by an insurance company against any kind of risk and liability to protect a person or a unit. It assists the insured person or unit in case of any emergency or financial loss.
Here are the possible features of a basic Car Insurance Coverage:
Liability against bodily injury: A car insurance gives coverage against bodily injury claims of people in case of an accident.
Liability against property damage: It also give coverage against property damage costs to third-party damages.
Covers medical costs: Most of the insurances available offer car insurance coverage against medical claims by paying the medical bills of the policy owner and other passengers involved in an accident.
Coverage for uninsured or under-insured cases: In case a third party is involved in an accident and the party involved is not covered enough by the insurance or has no insurance at all, then this car insurance coverage can be used to pay for the damages. Some Indian states cover physical injuries under this policy, while some states give coverage for property damages as well.
Below are some of the instances in which your car’s physical damages are covered:
In general, the vehicle insurance policies are broadly divided into two different categories depending on their coverage types:
Here, the auto insurance coverage is offered against any damage or loss caused to the vehicle and the accessories of the vehicle that are covered under the policy. This damage could be caused by man-made catastrophe or by natural calamities, and are categorized under:
Another compulsory feature of the comprehensive plan is the legal liability coverage for third party. Under this feature, the owner of the policy is safeguarded against any legal liability caused due to an accident involving his car. Moreover, this car insurance coverage also protects against legal liability in case of death, permanent bodily damage or permanent damage to any asset such as property.
Another interesting feature of this policy is that it provides coverage to vehicles against theft or fire even when the vehicle is parked in a parking lot and not in use for the time being.
All insurance policies involves two parties –
Thus, in case an accident involves a third-party, it can be termed as the one that doesn’t fall in the category of the insurer or insured. They may be anyone like a passersby walking on the streets and getting hit by a vehicle, or the passengers/people sitting in car and so on. It can also be the driver or passengers using a public transport, such as a bus or taxi. It also includes the fare paying as well as non-fare paying passengers.
The third-party car insurance policy covers the insured against all the legal liabilities in terms of compensation that needs to be paid due to an accident involving your vehicle. It include both compensation for death, major injury etc. for third-parties like street-side walkers, passengers etc.
In case of personal vehicle, the owner of the car is insured for any major injury or death caused to anyone sitting in the car while the accident takes place. This car insurance coverage also protect against damages to property of third-party.
There are many different types of car insurance policies available offering different car insurance coverage. You must tread cautiously while buying a policy and purchase an insurance policy depending on your needs and the kind of coverage you seek.
Go for a car insurance cover that offers maximum advantages and coverage. Don’t buy an insurance without examining and considering the details properly. Rather choose the policy that offers better coverage and value for money. Compare different policies and the coverage that they offer and choose the best auto insurance coverage that suits you.
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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