Types of Car Insurance

09 Feb 2019

What is Car Insurance?

Car insurance policy is taken by the owner to protect her vehicle from damages and/or loss arising from unavoidable and unforeseen circumstances. It provides cover against theft, total/partial, Third Party Liability arising out of Motor vehicle accident

Let us take a look at the different types of car insurance.

Liability Coverage

This is mandatory cover under the Motor Vehicles Act. It covers third party injury, death or damage to the property of third party.

Own damage to private car: Own Damage (OD) Car insurance helps you stay covered against damage caused to your vehicle due to accidents like fire, theft, etc. In case of an accident, an own damage cover compensates you for expense to repair or replace parts of your Private Car damaged in the accident. Your own damage insurance policy covers damage caused by fire explosion, riots and strikes, earthquake (fire and shock damage), floods, accidental external means, malicious acts, terrorist activity, whist in transit by road, rail, air, water or lift, and landslides. You are also covered in case of housebreaking and theft.

However, it does not cover the following

• Damage to third-party vehicle
• Damage caused to third-party property
• Injuries caused to people in the accident
• Normal wear and tear
• Mechanical and electrical breakdown
• A vehicle being used other than in accordance with the limitations as to use. For example, if you use your Private car for commercial purposes
• Damage caused by person driving without a valid licence
• Driving under the influence of alcohol or any other intoxicating substance
• Consequential loss.

Third-party insurance

Third party insurance policy is a statutory requirement as per the Motor Vehicles Act, 1988, and driving without a third-party insurance policy for Private car in a public place is an offence punishable by law.

There are two types of third-party liability coverage. First coverage to third party person i.e. bodily injury/ Death/ disability etc. covers costs resulting from an accident to an insured vehicle. These injuries' costs could include expenses like hospital care, lost wages, and pain and suffering due to the accident. Second, property damage liability covers costs resulting from damages to or loss of property from an insured vehicle.

Add-ons

Choose wisely and secure your two wheeler with our range of add-on covers.

Depreciation Cover: It covers depreciation component applicable in the event of claim on the value of parts replaced as a result of admissible claim under Own Damage Section (Section I) of the policy.

Passenger Assist: This add-on offers comprehensive coverage to secure the passengers travelling in the insured vehicle.

It covers-

• Hospital Cash allowance paid per day of hospitalization
• Medical Expenses
• Medical Transport Allowance.

Consumable Cover: It covers expenses incurred towards those items or substances of specific use which at the time of loss are either totally consumed or rendered unfit for further consumption arising out of damage to the vehicle insured and/or to its accessories. Major items covered are engine oil, coolant, fuel filter etc.

Engine Safe Cover: It covers expenses incurred for repair or replacement of internal parts of gearbox (such as gears or shafts, bearings, gear oil and gaskets), engine block and internal child parts of engine, labour cost (incurred towards overhauling the damages engine/gear box), engine compression tests and other machining charges due to ingression of water in the engine or leakage of lubricating oil from the engine / assembly arising out of accidental damage.

GAP Value Cover: It insures the difference between the Insured declared value and the purchase price or current replacement value of the vehicle (whichever is lower). It also covers the Road Tax and first-time registration charges of the vehicle.

Special Conditions applicable to this benefit-

• Insured should be the first registered owner of the vehicle.
• This cover can be offered to only indigenous vehicles.

Key Loss Cover: The Company will reimburse the cost of replacing vehicle keys in case of irrecoverable occurrences of broken or damaged keys and replacing locks and keys in case of theft of keys and /or if the vehicle is broken into along with damage to the locks/keys of the insured vehicle resulting in security threat to the vehicle.

Roadside Assistance Cover: It provides assistance to insured and passengers of the vehicle in case of distress "due to breakdown of the vehicle". The services provided under the Roadside Assistance are as follows:

• Vehicle relocation to the nearest garage in case of major breakdown.
• Repair Services for minor breakdowns
• Assistance in case of lost keys (availed only once during the policy period)
• Flat Tyre support
• Arrangement of emergency fuel in case the vehicle runs out of fuel. (Cost of Fuel shall be paid by insured on the spot- availed only once during the policy period)
• Alternative Transport assistance to the nearest safe location for the passengers of the vehicle (Taxi fare for the journey shall be borne by customer and shall be payable directly to the provider on spot)
• Coverage Area: Pan India
• Support given: 24 X 7

Disclaimer: For more details on risk factors, terms & conditions please read sales brochure carefully before concluding a sale. *The discount amount will vary subject to vehicle specification and place of registration