By law, one needs to cover their personal vehicle under an insurance policy. It is a legal requirement in India that one must have a minimal insurance policy covered for their car if driving within India. For different brand of automobiles, this insurance coverage varies. It also varies based on the company offering car insurance in India.
Broad over view about coverage of car insurances
Broadly speaking, car insurance in India is covered under two categories given as below:
A comprehensive car plan – Such kind of an insurance plan covers every kind of damage or loss that is incurred by the automobile due to either natural or artificial causes and calamities. Technically these are broadly categorized as “Natural Calamities” and “Manmade Calamities”. The various natural causes of accidents can be due to storm, flood, fire, explosions, hurricane, typhoon, tornadoes, landslides, cyclone, damage of stock, rockslide and many more. A man made cause can be theft, shooting, burglary, accidents, rage attacks etc.
A third party policy – Such kind of car insurance policy is made in between two individuals – one who insures and the other who is insured. A third party is one who is not any one of the above. They can be pedestrians on the street, passengers driving by paying fare or simple passengers driving with you on your car. Such third party car insurance policy will protect these people who are using your vehicle and have incurred damage due to an accident. Such pillion drivers are also covered under these insurance plans.
List of possible coverage under car insurance in India are given below: –
- Physical liability – Here the insurance covers any kind of physical damage caused to the individual who has become injured while driving the car by meeting any kind of accidents. Any kind of such physical damage due to the collision of the car is covered under such car insurance plans in India.
- Damage of property – When an accident occurs due to the collision in between the insurer’s car and the other person there occurs a damage of property. The loss incurred in such damage of the third party’s vehicle is also covered under car insurance in India.
- Medical related payments – The owner of the policy is responsible for any kind of payment related to the medicals associated in the incidence of an accident. This not just covered damage caused to the car owner but also for any passenger sitting in the policy owner’s vehicle at the time of an accident.
- Coverage of uninsured or underinsured vehicle owner – Car insurance in India has plans which covers or protects a vehicle owner who is ignorant about insurance plans. One who either has no policy of his own or has insufficient coverage is also assisted by these policymakers. Generally physical damage is covered under such plans. However, there are some states in India where only damage and loss incurred due to the damage of the property is covered.
Hence, it is extremely important have a proper understanding about all type of car insurance policies and their coverage before investing into a particular policy for your vehicle.