car insurance There is a contract between a car owner and a general insurance company that promises to protect the car owner against financial loss caused by an unfortunate event involving his car. Based on the scope of coverage, there are 3 types of car insurance policies – third-party car insurance, standalone own-damage (OD) car insurance, and comprehensive car insurance. In order to continue getting the benefits of these policies, the process of car insurance renewal should be done by the policyholders on time.
Comprehensive Car Insurance
A comprehensive car insurance policy is the most comprehensive car insurance cover under which an insurance company is liable to pay for its own damages caused to the insured’s car along with financial liabilities towards third parties. Apart from road accidents, this policy is applicable in the event of natural calamities, man-made calamities, self-ignition or lightning, explosion, fire, theft etc.
Third-Party Car Insurance
Third-party car insurance policy is a mandatory requirement for driving a car in India. This is the most basic car insurance plan and hence it is also called as liability only car insurance policy. Under this cover, the insurance company is liable to pay for bodily injuries, permanent disability, temporary disability as well as death of a third party due to an accident caused by the insured’s car. The plan also provides coverage for property damage by third party up to Rs.
Own Damage Car Insurance
In September 2019, the Insurance Regulatory and Development Authority of India (IRDAI) introduced a standalone own-damage car insurance policy. Under this plan, the insured gets insurance coverage only for the damages caused to his/her four wheeler due to road accident, natural/man-made calamity, fire, explosion, theft or any other accident. The objective of a standalone own-damage car insurance policy is to provide flexibility to the insured in terms of the insurance provider they wish to choose.
How To Choose Car Insurance Policy Online?
1. Select the type of scheme – Assess your car insurance needs and finalize the type of policy you require. Choose a third party cover or comprehensive cover depending on your needs.
2. Compare Policies – You should compare different car insurance plans online. Comparison makes it easy to choose the best car insurance plan as per your budget and needs.
3. Check IDV: IDV or Insured Declared Value is the maximum amount that your insurance company will pay in case your car is totaled damaged or stolen. Car insurance premium is directly proportional to IDV, which means higher the IDV, higher will be the car insurance premium.
4. Check Premium: Based on the IDV of the car, model, fuel type, age and other factors, the car insurance premium varies accordingly. Hence, it is wise to first compare the car insurance premiums and then take a final decision.
5. Ask for add-on cover Add-on covers expand the coverage of your policy. You can buy it by paying an additional premium. You should inquire about add-ons and choose the one that best suits your needs. However, you can get this cover only with a comprehensive insurance plan.
6. Explore the Claims Process , Look for an insurance company that has a simple and fast claim process. To confirm the quality of claim processing of insurers, you can check their claim settlement ratio (CSR) before finalizing. It refers to the percentage of claims settled by the insurer in a year. It is better to buy a plan from a company with high CSR.
7. Network Garage: Network/cashless garages in car insurance help policyholders to settle their claims in a cashless manner. Thus, the higher the number of network garages, the more beneficial it is for the policyholders.
Benefits Of Buying Car Insurance?
Car insurance helps you stay legally compliant as as per the Indian Motor Tariff, it is mandatory for every car owner to have at least one third-party car insurance policy. In whose absence a fine of Rs 5000 can be imposed. 2,000 and/or imprisonment of up to 3 months.
Protection against third-party liabilities
A car insurance policy helps you to reduce third-party liabilities like bodily injuries, temporary/permanent disability, death as well as property damage. Whereas, the compensation for third party property damage is limited to Rs. 7.5 lakhs, there is no limit on compensation in case of third party bodily injury, disability or death.
self damage protection
A car insurance policy helps to keep you financially secure against the expenses of own damage to your car. Damage caused due to road accidents, natural calamities, man-made calamities, fire, explosion, vandalism etc. are covered under standalone own-damage as well as comprehensive car insurance plans.
coverage against theft
Car insurance policy also provides coverage in case of theft of your car. If your car is stolen, your insurance company provides you with the Insured Declared Value (IDV) of your car which is equal to the market value of your car.
personal accident cover
Along with the car insurance policy, you can also get personal accident cover of up to Rs. 15 lakhs which provides coverage in case of death, bodily injuries as well as disability of the policyholder in a car accident.