What Are Different Types Of Car Insurance Policies In India?

Understanding car insurance is vital when purchasing a new car. It provides financial protection in case of accidents or unexpected incidents. There are various policy options, so choose one that suits your needs and budget.

The Various Categories Of Car Insurance In India Are As Follows:

1. Third-Party Liability Only Cover

A type of car insurance called third-party car insurance protects the insured against legal liability resulting from loss or damage to a third party’s property or person caused by the insured. This kind of insurance may cover the cost of replacing or repairing a third party’s damaged vehicle, the expense of a third party’s hospitalisation and medical care, and liabilities resulting from a third party’s demise. Claims are subject to terms and conditions set forth under the motor insurance policy. *

2. Own Damage (OD) Or Collision Damage Insurance

Collision damage car insurance covers repairing a damaged car after an accident. The coverage cost depends on the car’s age and insured declared value (IDV), which is the market value. IDV minus depreciation determines the maximum payout. Depreciation is the vehicle’s deterioration since purchase.

A car owner should have collision damage coverage if they finance their vehicle.

This is because the lender will demand that the car’s owner have this kind of insurance to safeguard their interest in the vehicle. Claims are subject to terms and conditions set forth under the motor insurance policy. *

3. Personal Accident Cover

In the event of an accident, the owner-driver of the vehicle may be protected by a personal accident car insurance policy. It provides coverage for passing away, medical costs, and permanent disability. People who frequently travel for work should have this kind of insurance because they are more likely to be in an accident. Claims are subject to terms and conditions set forth under the motor insurance policy.

Car owners should consider getting a personal accident car insurance policy if they frequently travel for work. This kind of insurance can offer the owner financial protection. *

4. Zero Depreciation Insurance

In India, car insurance policies can be upgraded to include zero depreciation coverage. It enables the owner to receive the full claim amount without considering depreciation. This indicates that the owner won’t be responsible for covering the depreciation of the components that require replacement. 

All car components may be eligible for zero depreciation coverage except for tyres, tubes, and batteries. 50% of these components may be covered. Claims are subject to terms and conditions set forth under the motor insurance policy. *

5. Comprehensive Car Insurance

It offers the most comprehensive car insurance policy, as the name would imply. It covers a variety of risks, such as harm to third parties or their property, harm to the owner’s car, bodily harm, and non-collision damage from things like storms, floods, fire, and theft. The user can add additional coverage choices to enhance the policy even more.

Financial protection from a variety of risks, such as harm to the vehicle, injuries to the driver and passengers, and damage to other people’s cars and property, may be provided by comprehensive vehicle insurance. It may offer extensive coverage, including defence against third-party liabilities and any losses or harm done to the owner or the vehicle. Claims are subject to terms and conditions set forth under the motor insurance policy. *

*Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.