Car Insurance works as a safety net for the owner/user of the car. Realising its importance for car owners across the country, the Government made it obligatory for vehicle owners to have a third-party insurance cover for their vehicle. This means you have to buy a policy for your car to avoid any penalty/losses/legal trouble in the future.
Purchasing a car insurance policy is often a formality among many car owners because the only reason they care about getting a cover for their four-wheeler is that it is mandatory by law. Low premium plans are generally preferred since they are easy on the pocket. This means that spending on an inadequate cover that can make the owner pay a hefty amount out of his pocket in the event of a mishap or damage.
It is very important to invest in a comprehensive car insurance plan that's right for you. Keep in mind that you need to understand the terms and conditions of the car insurance plan and draw a comparison with other policies to come at a suitable decision.
All the motor cars plying on the Indian roads must have a valid motor insurance policy as per the Indian Motor Vehicles Act, 1988. It is illegal to ride your car for private or commercial purpose on Indian roads without having a mandatory third-party liability cover insurance.
It is obligatory to have a valid car insurance policy as it provides financial protection against unfortunate accidents, which may damage to third-party property, and/or cause bodily injuries to the third-party driver or co-passengers and/or pedestrians. In such cases, having a liability cover provides financial coverage, the insurance company pays compensation on behalf of the car owner.
It is the fixed amount that you need to pay to the insurance agency to keep the policy in effect.
The premium amount of the policy will depend upon the Insured Declared Value (IDV). This affects how high or low that amount will be. Many insurance firms have contacts with the manufacturers and provide you with the optimum value.
This section includes protection against the following phenomenon: landslide, self-ignition, lightning, explosion, earthquake, flood, typhoon/hurricane, inundation, and hailstorm.
Under this, you will be covered against threats like burglary, theft, damage during transit, an accident caused due to external agents, terrorist activities, riots, and strikes.
A valid car insurance policy provides you with financial coverage in case of car theft or any damage caused by or to your vehicle.
It is mandatory to have a valid motor policy for your hatchback, saloon, SUV car to drive them legally on Indian roads, so having a valid motor policy keeps you legally protected.
In case the policyholder meets an accident, which causes a partial or total permanent disability or dies due to an accident, the insurance company covers the insured up to the sum of Rs.15 lakh.
You can enjoy your drive without having any worries about riding your car illegally, paying a hefty penalty, or paying from your pocket in case of third-party bodily injury or property damage.
There are two primary options available in the market and both of them cater to completely different needs.
| Accidental Event | % of Sum Insured |
|---|---|
| Death | 100% |
| Dismemberment of both the limbs or loss of vision in both eyes or one limb and one eye | 100% |
| Dismemberment of one limb or loss of vision in one eye | 50% |
| Permanent Total Disability | 100% |
