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Are you planning to buy a car and have yet not decided on your car insurance policy? Well, according to the Motor Vehicles Act, 1988, every car owner should mandatorily buy a third party car insurance. But the coverage of third party liability is limited to only damages done to third party vehicles. To get coverage for your vehicle, you must choose own damage car insurance. Here is a guide that will help you with the right car insurance policy in India.
Before looking for the potential car insurance, it is necessary to know about the different car insurances that are available in India.
• Third-party insurance: This policy covers the financial liabilities to a third party vehicle arising from the damages done to the car or loss of life. Having third party insurance is mandatory for all vehicles plying on Indian roads.
• Own Damage Insurance: This policy covers financial liabilities arising due to partial or total loss of own vehicle due to accident, theft or any natural or man-made calamity.
• Comprehensive Car Insurance Policy: This is a complete policy that includes third-party liability, own damage insurance, and personal accident cover.
Your car insurance plan should provide you with complete coverage for your car. As Indian roads are more prone to accidents, having a comprehensive car insurance plan is ideal. As this insurance policy covers both the third party insurance as well as own damage insurance, you would not require to buy two separate policies. Moreover, buying two different policies would mean tracking them for renewal year on year.
Let’s know what all should be covered in your comprehensive insurance policy:
• Your insurance policy should cover the damages done to your own car due to an accident or collision.
• The policy should cover any losses that occurred due to the theft of your vehicle.
• Your comprehensive car insurance policy should cover any damage to the car due to natural calamities such as earthquakes, storms, floods etc. or man-made calamities such as vandalism, riots etc.
Apart from the above parameters, there are other factors that you should keep in mind before selecting the insurance cover.
No Claim Bonus (NCB): NCB is a discount on the premium that the insurer gives in case you do not make any claims during the policy tenure. This is an important feature that decreases your premium rates on renewal. Check whether you can avail this benefit on your insurance policy.
Add-on covers: There are a few add-on policies that you should include in your comprehensive insurance policy. Including add-ons will increase your premium rates, but this would definitely give financial assistance in case of any damage. A few add-on covers that you must consider are:
• Breakdown assistance
• Tyre protection
• Engine and gearbox protection
• Return to invoice cover
• Consumable cover
Deductibles clause: Comprehensive insurance policies come with a deductible clause where you have to bear a certain percentage of the damage expenses. Deductibles are of 2 types compulsory deductible and voluntary deductible.
Under compulsory deductible, it is mandatory to pay a certain amount towards the claim before the claim settlement.
In voluntary deductible, you can choose to pay a certain percentage of the claim amount of your volition. Choosing a higher deductible decreases your premium amount.
Once you are convinced that your comprehensive car insurance policy covers all the required areas, you can proceed with the purchase. At Kotak General Insurance, you can choose the option to buy and renew your comprehensive car insurance policy online. To ensure a hassle-free claim settlement process, we allow an online claim settlement facility. To know more about our insurance policy, click on the Kotak Car Insurance page.
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