Benefits Of Car Insurance


14 Jun 2023

A car insurance can help you offset substantial financial loss that you may incur because of damage caused to your car

A car insurance can help you offset substantial financial loss that you may incur because of damage caused to your car. Know about important inclusions of a car insurance plan.
According to the 1988 Motor Vehicles Act, it is a mandate for every car owner in India to have vehicle insurance. Although the coverage that one motor policy offers differs from another, most insurance providers generally cover the following:

Bodily injury liability

Any bodily injury caused to people involved in a car accident is covered.

Property damage liability

This aspect of car insurance offers coverage on any property damage (a car for example) of the third party due to an accident caused by the insured’s car.

Medical expenses

Any medical expenses incurred by the owner and the passengers of the car owing to a car accident are taken care of.

Uninsured and under insured driver coverage

Often it so happens that the driver of a car that has been involved in an accident has little to no insurance. In such cases, the car insurance policy covers any bodily injury loss and in certain cases even covers property damage.

Collision and comprehensive coverage

Any damage caused due to insured’s car colliding with another car or object is taken care by most insurance policies. These policies also cover losses due to theft of car as well as damage of car due to natural calamities.
It is important to know these car insurance details before opting for one. While these are constant when it comes to comprehensive car insurance policy coverage, there are a couple of things that a car insurance policy does not cover. Here is a list of a few exclusions that you as a car owner should be aware of as it helps in having a hassle-free motor accident claim.
No coverage is provided in the following cases:

  • If the driver is under the influence of alcohol or any other intoxicant

  • If the driver does not possess a valid license

  • If the engine is damaged due to oil leakage

  • In case the insured has not adhered to the manufacturers guidelines on how to use the car, which has thus resulted in damage to the car

  • Damage caused to the car due to war, terror attacks, or other such manmade calamities

  • Accidental loss that is deliberate in nature or in other words ‘staged’

Besides these, a claim is not recoverable if the insurer has rejected the claim the first time and the insured has not taken up this matter in court within 12 months of claim rejection.

It is essential to know all the necessary details of your car insurance policy before opting for any. Today, online insurance has made all information easily accessible to us at any time. You may get an auto insurance quote online. Your policy details are also easily available on the insurance provider’s website.

So, whether you are buying third party car insurance online or comprehensive car insurance cover, turning to the Internet for all your insurance needs is the best way forward.

Related Blogs:
Older Car Insurance
All You Need to Know About Personal Accident Car Insurance Cover
5 Things to Learn About Car Insurance for Beginners
Inform your car insurance company about these seven critical things

Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.