As per the Motor Vehicles Act of 1988, it is mandatory to have a car insurance policy for every car owner in India. It is a must to have this policy as it provides protection against financial loss or damage in the event of a personal accident, third party liabilities, theft and calamities like fire, floods, etc. Without car insurance, the car owner may face a lot of issues legally and financially. Thus, it is crucial to buy a suitable policy to meet these requirements.
Comprehensive Insurance:
Comprehensive car insurance is an extensive insurance policy for private cars that offers protection to the vehicle from all kinds of risks, such as accidents and collisions, theft, third party liabilities and natural calamities like flood, landslide etc. The insured also has the option of adding add-on covers to enhance the scope of coverage.
Third Party Insurance:
Third-party car insurance is a standard vehicle insurance policy which is mandatory to be taken in India. It covers you up to a maximum of INR 7.5 lakh against third-party liabilities and offers insurance coverage against damages caused by your car to a third party or third property. It also provides coverage in case of the death of a third party.
Third Party Car Insurance Premium Rates as per FY 2021-22
| Capacity of the Car’s Engine | Premium Rates (INR) |
|---|---|
| Not more than 1000cc | 2094 |
| More than 1000cc but not exceeding 1500cc | 3416 |
| More than 1500cc | 7897 |
Standalone Own-Damage Car Insurance Policy
This kind of policy provides coverage for own damages, which has caused loss to the policyholder’s car. It is to be noted that this kind of policy does not offer coverage for third-party car insurance. Standalone own-damage car insurance policy is effective in India from September 2018.
Cashless garages provide a quick and easy way to repair your car’s damages and also settle claims in a hassle-free way. Generally, insurance companies have a great tie-up with these garages which are specialized to mend all the car repairs. The insured is not required to pay anything to these networked garages as the claim gets settled with the insurance company. However, it is to be noted that policyholders of comprehensive plans can only make use of cashless garages.