In India, you must purchase insurance cover for your vehicle when you buy a new car. As per Indian Motor Vehicles Act, all car owners must at least have a third-party insurance cover. You can purchase third-party policy and comply with the law, or you can buy a comprehensive car insurance policy and get wider coverage.
While it is recommended to opt for a comprehensive car insurance policy, you must understand the risks covered under the policy to get maximum benefit from it. If you are a first-time car insurance buyer, this write-up is just for you. We discuss the various risks covered under comprehensive car insurance policy.
First, let us understand what comprehensive car insurance is
As the name suggests, comprehensive car insurance provides much wider coverage than the mandatory third-party policy. It covers both third-party liabilities as well as own damage. While the premium for such policies is slightly higher than third-party plans, it is worth the price as you may save a significant amount when you file a claim.
Risks covered under comprehensive car insurance policy
• Financial Risk
One of the most significant benefits of comprehensive insurance is that it offers protection against financial risks. In simple words, if you meet with an accident, the insurance company will pay for the damages, disability, and death caused to the third party. The insurer will also compensate for the damages incurred to your car and bodily injuries you may suffer.
• Physical Risk
A comprehensive car insurance policy covers the physical risks such as damages to the car and injury caused to the third party and you. If you have a personal accident, the insurer will also compensate for the treatment cost of your family member who may get injured in the accident.
• Liability Risk
If the third party involved in the accident files a suit, then the comprehensive car insurance policy will help you get coverage against the legal charges; the insurer will bear the cost.
What is not covered under comprehensive car insurance?
A comprehensive car insurance does not cover all risks; it has a few limitations. It does not cover the damages under following situations:
• Accidents caused due to driving under the influence of alcohol, drugs or any other intoxicating substance.
• Damages caused to your and third-party’s vehicle due to driving without a valid licence.
• Accidents caused due to electrical or mechanical breakdown of the car or its spare parts.
• Vehicle used for commercial activities.
• Damages caused outside the state or country.
• Damage caused due to your involvement in illegal activities like street racing.
Now that you know what risks are covered and not covered, you must know about the steps to file a comprehensive car insurance claim. If you get involved in an accident, follow the below steps to file a claim.
• First and foremost, inform the insurance company about the accident and the damages incurred as soon as possible. Typically, the insurers have a time limit and you must report the accident within that limit.
• File an FIR at the nearest police station from the accident spot, and keep a copy of it for future use. It is one of the important documents you must submit while filing a claim.
• Submit the claim form along with necessary documents like, residence proof, identify proof, copy of licence, copy of vehicle RC (registration certificate), copy or car insurance policy, FIR copy, etc.
• Once you submit the form, the insurer will appoint a surveyor to investigate the accident and assess the extent of damage you have suffered or caused.
• You can then take your vehicle for repair to the nearby network garage and enjoy the benefit of cashless claim settlement. The insurer will directly settle the bill with the garage.
Accidents can happen anytime. While you cannot prevent it, you can stay sufficiently prepared by availing a robust comprehensive car insurance policy like Kotak Car Secure. You can visit our Kotak General car insurance page to know more about the policy and complete the purchase.
Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.