Types Of Car Insurance Coverage: A Quick Guide


Unfortunately, road accidents in India are common, often resulting from various factors, including negligence and carelessness. These incidents lead to property damage and, in severe cases, life-altering injuries or even fatalities. Having adequate car insurance is crucial to mitigate the financial and legal consequences. Here, we discuss India’s top five categories of car insurance coverage.

1. Third-Party Liability Only Cover

Mandatory by law, third-party liability insurance is a fundamental coverage every vehicle on Indian roads must have, as per the Motor Vehicle Act of 1988. It exclusively covers harm caused to any person, property, or vehicle due to the insured’s driving activities. Despite its narrow scope, it is one of the more affordable insurance options in the country. It covers damages to the third-party vehicle, property damage to third parties, expenses related to third-party treatment and hospitalisation, and obligations resulting from the passing of third parties. However, damages or losses to the insured vehicle from accidents, natural disasters, or theft are not covered. Claims are subject to terms and conditions set forth under the motor insurance policy. *

2. Own Damage Cover (OD)

Under the collision damage cover insurance policy, the insured receives payment for repairing their damaged vehicle. The premium is calculated based on the car’s age, insured declared value (IDV), and market value. The insurance provider reimburses the current market value if repair costs exceed the vehicle’s present worth. This coverage suits those living in accident-prone areas or cities with heavy traffic. Claims are subject to terms and conditions set forth under the motor insurance policy. *

3. Personal Accident Cover

Personal accident insurance shields the car owner from post-accident medical costs. It also covers drivers and passengers, regardless of who caused the accident. The insurance company pays for medical bills, and the bereaved family receives a lump sum payment in case of demise. This type of insurance is crucial for providing financial protection after an accident. Claims are subject to terms and conditions set forth under the motor insurance policy. *

4. Uninsured Motorist Protection

Uninsured motorist protection comes into play when the driver who caused the accident is uninsured. It covers the cost of repairs for damages sustained by your car and can also extend to cover accident-related medical expenses. This coverage is valuable when damages exceed the amount covered by third-party insurance or when dealing with an uninsured driver. Claims are subject to terms and conditions set forth under the motor insurance policy. *

5. Comprehensive Car Insurance

Comprehensive car insurance is the most extensive coverage available, protecting damage to your car and damage caused by others. It offers a 100% protection guarantee, covering many risk factors encountered while driving. Comprehensive insurance includes theft protection, a feature absent in other types. It safeguards against natural catastrophes, artificial disasters, fires, acts of terrorism, and more. However, specific scenarios like damages due to intoxication, driving without a valid license, mechanical failures, and irresponsible driving are not covered. Make sure you carry out the car insurance policy renewal process on time for uninterrupted coverage. Claims are subject to terms and conditions set forth under the motor insurance policy. *

Navigating the diverse landscape of Bajaj Allianz car insurance online in India involves considering the specific needs of the vehicle owner and understanding the coverage options available. Each category serves a distinct purpose, providing a layered approach to financial protection in the face of unforeseen events on the road. *

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Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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