As soon as you hit Indian roads with your vehicle, it must be covered by third party liability car insurance to ensure that anyone affected by an accident gets appropriate monetary compensation.
Driving without valid car insurance policies can result in heavy fines from the government, so this article details why it's necessary as well as how to select an ideal plan for your vehicle.
Third Party Liability
Third party liability insurance is mandatory under India's Motor Vehicles Act and provides financial and legal protection to policyholders should an accident result in physical injuries to other people or damage to their property. While comprehensive plans also cover your own car, third-party car insurance only protects third parties.
Insurance policies are an absolute must when driving as they protect drivers against trouble with authorities and costly fines in case of accidents.
Your third-party car insurance plan can now be easily purchased and renewed online in India, saving time and hassle by bypassing insurance offices. In addition, this system makes it easier to check policy details before buying or renewing them; compare existing coverage against alternative plans before making your choice switch car insurers if desired for improved coverage - saving both time and hassle along the way!
Third party liability policies provide not only financial and legal protection for your car, but they can also compensate any costs an injured third party incurs as the result of an accident with it.
To receive their due, injured third parties need only file an FIR detailing what occurred and submit all documents required; then their insurer will directly pay out compensation payments without passing it through you first.
Once considered a valid defense to avoid liability, the Supreme Court has made it more difficult for drivers to escape claiming insurance and even carrying passengers gratuitously will not relieve them from responsibility.
Before buying or leasing a new or pre-owned car in India, make sure that third-party liability coverage has been taken out. It is one of the cheapest and most essential types of coverage you can acquire and it will help both comply with local laws as well as safeguard you in case of accidents.
Comprehensive Cover
Comprehensive car insurance provides full protection from both third party liabilities and your own damage, making it an attractive choice when purchasing a new vehicle.
Although its cost may be slightly more than third-party liability policies, comprehensive cover gives greater peace of mind as it protects aftermarket accessories like stereo systems, navigation systems or bike carriers that might have been added. It will even cover expenses should your car be stolen!
With this type of policy, you can take advantage of add-on covers such as zero depreciation and engine protection, plus cover against natural disasters or acts of God that might damage your vehicle (e.g. floods, earthquakes, cyclones and hurricanes). Typically, claims will be settled minus your deductibles; however if it appears severe damage has been done then they may opt to replace instead of compensate you.
While third-party liability coverage is mandatory in India, comprehensive protection can provide added peace of mind if your car is particularly costly or valuable. However, for vehicles of lesser value just a third-party policy may suffice.
If you are planning on purchasing a vehicle soon, be sure to compare prices online before making your selection as the IRDA has issued a circular withdrawing long term car insurance policies for both four-wheelers and two-wheelers, making car and bike purchases cheaper for buyers.
Furthermore, starting August 1, 2020 the new three-year long term own damage and third party liability package will become available - this can be read about more here - while PayBima allows users to compare quotes from various companies before selecting their best plan before buying online car or bike insurance online allowing buyers a seamless shopping experience and finding their ideal plan before final purchase.
Fire and Theft Cover
Car insurance provides peace of mind by protecting against financial losses resulting from accidents or any unexpected events. Furthermore, having appropriate coverage can help avoid legal complications or costly repair bills should your car be damaged due to fire or theft.
Car insurance coverage must include third-party liability protection by law; however, you have the option of purchasing additional comprehensive policies that offer protection for damages beyond just third party liabilities as well. While these premiums will likely be higher, comprehensive policies provide comprehensive coverage against all possible eventualities.
Consider both the value and your willingness to pay for added protection when selecting a car insurance policy. If your car is of significant value, comprehensive cover may make sense; otherwise if it's only several years old and won't cost much in repairs or replacement costs it might not warrant its higher premium cost.
Final consideration should include reviewing your chosen policy's inclusions to ascertain which types of damage it covers. For instance, if you opt for a third party, fire and theft policy and your vehicle is damaged due to theft or fire, notify your insurer immediately of the incident and submit all relevant documentation such as First Information Report (FIR) as per their stated processes.
If your vehicle is declared totaled in an incident, its insured value (IDV) will determine how much of an insurance payout you can expect to receive from its insurer. IDV is calculated based on manufacturer-listed selling prices for brand and model car makes; some insurers also offer add-on policies like invoice cover which allow you to claim back all original amounts paid if total loss occurs.
Car insurance is an essential purchase for all Indian drivers. By following these tips and shopping around online for quotes to find a policy tailored specifically to your needs, purchasing auto insurance will prove to be an intelligent move.
Personal Accident Cover
As with other countries, India requires car insurance before driving on public roads. According to the Motor Vehicle Act of 1988, all vehicles must be covered with a third party liability policy prior to using them on public roads - this type of cover does not provide coverage for injuries or damages sustained by their owners.
Third party liability covers your legal responsibilities should an accident happen where you were at fault, including injuries to others as well as damage to their property. Maximum compensation available under this plan for deaths and Rs 3 lakh per person for loss of limbs/eyesight losses; additionally it covers medical expenses and lost wages should an incident occur.
Over time, IRDAI recognized that third party liability claims weren't the only ones being filed - personal accident covers were being filed too regularly as well. Therefore, they made personal accident coverage mandatory in all owners-drivers policies; otherwise they can incur fines.
Personal accident coverage is a lifesaving insurance that provides financial support in the event of an unfortunate incident involving the driver or owner. This cover is especially advantageous in case of death or permanent disability caused by an accident.
Minimum coverage available is up to Rs 1 lakh and it can be increased with additional premium payments for higher coverage levels. Prior to IRDAI making personal accident coverage mandatory, these covers were often only accessible at very high premium prices, thereby making them inaccessible for many vehicle owners.
Now with IRDAI making personal accident cover mandatory, comprehensive vehicle protection can now be obtained for just a small additional sum of money; an extremely welcome development for two-wheeler and four-wheeler owners alike!
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