How Comprehensive Car Insurance should be in India

In the country of India, especially in the region of Delhi/NCR, you would see jam-packed roads during the daytime. In the morning, you would see people commuting to their workplaces, starting from about 8:30 in the morning until 10:30 AM. Almost everyone gets unruly on extremely busy roads of the city of Gurgaon. Every inch of the road is covered by four-wheelers, two-wheelers, auto rickshaws etc.

Literally, you can see everyone striving hard to be the first to get home, whereas people have to stick to the roads until the massive traffic jam clears. Meanwhile, there is a huge probability of accidents. You can say that everyone tries to make their rules and drive like they own the roads.

When we talk about driving rashly on the busy roads of the city, it is understood that you need to be told that things are not going to work that way. You need to drive carefully on the roads for the safety of your own as well as of the pedestrians. What it your car was damaged in an accident was stolen when parked on the roadside? There comes the need for car insurance in the picture.

Types of Car Insurance Policies

Car insurance is one of the most important documents that you should carry when driving on the roads. Just like your driving license, you need to have a valid insurance plan for your car. Also, you need to make sure you do not forget about car insurance renewal and have it back in force before it expires. The following are two types of insurance policies available for cars:

1. Comprehensive Car Insurance Policy
2. Third-party Liability Insurance

You can find a little more about these policies below:

1. Comprehensive Car Insurance Policy

A comprehensive car insurance policy covers the expenses arising from accidental damages to any third-party vehicle and property in the surroundings along with the insured vehicle and owner-driver. Therefore, if you have a brand new car or it’s not more than 5 years old, then having a comprehensive car insurance policy is highly recommended. This policy also covers your car against the unfortunate events like earthquake, cyclone, lost or stolen, self-ignition etc.

2. Third-party Liability Insurance

A third-party liability insurance policy does not cover any damage to your car buy to the third-party vehicle or property in the surroundings. In such an incident, an FIR needs to be lodged at a local police station and the claim will be settled by your insurer in the Motor Accident Claims Tribunal (MACT). The MACT will decide the compensation and that is based on various factors that include the income level of the party at fault (in this case you). Under valid motor insurance, the same is applicable to the damages to a third-party property where the coverage ranges up to Rs. 7, 50,000 and can be as limited as Rs. 6, 000.

As per Motor Vehicle Act, 1988, a valid insurance third-party insurance policy is mandatory for every motor vehicle running on the roads.

The Verdict

When it comes to choosing car insurance, the advice is based on the age of your car. If your car is less than 5 years of age, then you should go for comprehensive car insurance plans. In contrast, you can opt for third-party liability only insurance for an old car.

Prateek is a seasoned independent writer. His explanatory and creative writing style helps understand the subject matter easily and offers tips, tricks and expert suggestions for Star Health Insurance polices..