In India, third-party liability car insurance is a mandatory requirement for all vehicle owners as per the Motor Vehicles Act, of 1988. Choosing the right car insurance coverage can be overwhelming and an important task with numerous policy options available. In this article, we’ll explore the basic coverage options available in India and what they mean for you.
What is car insurance?
Car insurance also known as four-wheeler insurance is an agreement between a car owner and the car insurance provider that offers protection for four-wheelers in the case of financial losses due to unforeseen events like accidents and natural calamities. In India, third-party liability car insurance is legally mandatory under the Motor Vehicles Act, of 1988. Car insurance helps keep you, your car, and pedestrians for life’s unexpected twists and turns while driving. It provides you with financial security during unfortunate events involving risks and damages.
Basic coverage options in India
Here are the basic coverage options available in India:
Third-party liability insurance
Third-party liability insurance is the most basic and mandatory type of car insurance in India. This type of insurance covers damages or losses caused to third-party property or individuals in the event of an accident.
Comprehensive car insurance
Comprehensive insurance provides comprehensive coverage for your car, including damages or losses caused by accidents, natural disasters, theft, and more. This type of insurance also includes third-party liability coverage along with own damage coverage.
Own damage insurance
Own damage car insurance provides coverage for damages or losses caused to your car.
Personal accident insurance
Personal accident insurance provides coverage against death or disablement in the event of an accident.
What does car insurance cover?
Here are some key points that car insurance typically covers in India:
Damages or losses caused by accidents
Car insurance covers damages or losses caused to your vehicle or third-party property in the event of an accident.
Natural disasters
Car insurance covers damages or losses caused by natural disasters such as floods, cyclones, earthquakes, or storms.
Theft
Car insurance covers losses caused by theft of your car.
Third-party liability
Car insurance covers damages or losses caused to third-party property or individuals in the event of an accident.
How to choose the right car insurance policy?
Choosing the right car insurance policy is essential while driving on the Indian roads, but here are some tips to help you make the right decision:
Check the policy coverage: Check the policy coverage and ensure that it meets your needs and requirements for driving your car on the road.
Check the insurer’s reputation: Check the insurer’s reputation and customer service on their website to get a fair idea about the Insurer’s offerings before making the final decision.
Check the premium: Check the premium and ensure that it fits your budget to avoid facing any financial burden in the future.
The final note
Car insurance is a mandatory requirement for all vehicle owners in India. Understanding the basic coverage options available can help the policyholders to make a right decision when purchasing a car insurance policy. By choosing the right car insurance, you can ensure that you’re protected against financial losses in the event of an accident, theft, or damage to your car.