What Does Car Insurance Policy Cover?

Car insurance is a legal requirement that must be met. As per the Motor Vehicles Act 1988, all vehicle owners must have third party car insurance cover. There are basically two types of motor insurance covers to choose from: third party liability only cover and comprehensive cover.

Apart from these, there are a number of add-on covers available with motor insurers. You can buy these add-on covers to extend your basic car insurance coverage. You will have to pay an additional premium to avail the benefits of an add-on cover.

Let’s find out what does each car insurance plan covers.

Third Partly Liability Coverage

The liability only motor insurance policy covers the vehicle owner's legal liability claims to pay compensation for the followings:

• Death of a third party person due to an accident.
• Bodily injury of a third party
• Damage to any third party property.
• Cover third party legal liability in case of third party injury, death, or property damage.
• Owner-driver personal accident coverage up to 15 lacs

Comprehensive Policy Coverage

Comprehensive car insurance is the best motor insurance plan that you should consider. The policy covers the following.

• Damage to your vehicle due to fire, self-ignition, lightning, explosion.
• Terrorist Act.
• Any damage or loss to the car while it is in transit through road, lift, inland waterway, rail, elevator, air etc.
• Earthquake (Fire and Shock) Damage.
• Housebreaking, burglary, theft.
• Damage from landslide/Rockslide
• Strike and riot.
• Malicious Act.
• Inundation, Flood, Typhoon, Hailstorm, Hurricane, Cyclone, Storm, and Tempest
• Accidental external means.

It’s advisable to go for comprehensive protection since this plan comes with both third-party coverages as well as own damage cover. Meanwhile, If you are looking for the best car insurance policy for your vehicle, you can click here to get the best deals.