What Your Motor Insurance Covers

We list the important components that a good car insurance policy covers.

Buying a car, whether for private or commercial use, is simple enough since there are umpteen options in vehicle types and brands. A wide range of options are also available for motor insurance policies – the policy is purchased at the time of buying the car.
It is mandatory to take a motor insurance if you wish to drive your vehicle in India. Taking a comprehensive car insurance policy protects you and your car against a variety of dangers on the road. But you need not buy vehicle insurance from your car dealer – you can buy it independently by contacting an insurance provider directly. But before you do, it is necessary to brush up on the essential components that your car insurance plan must comprise.

    What a good motor insurance plan covers

  • Car damage expenses:
    The most comprehensive motor insurance plan covers a wide range of damages to your car. Whether your car sustains major damages in an accident, or a broken fender/windshield in a collision, or even wilful destruction (from theft and/or break-ins), the car insurance policy provides adequate coverage against them all.
  • Personal accident coverage:
    Your motor insurance policy offers a compulsory personal accident coverage for individual car owners. The coverage amount may vary from insurer to insurer. However, do opt for a minimum coverage of Rs 1 lakh for yourself, and increased coverage to account for passengers, up to Rs 2 lakh per person. The coverage is extended for the number of passengers; their names may not be required at the time of taking the insurance policy.
  • Third Party Liability (TPL):
    This is a vital, compulsory component of your car insurance plan. It provides protection against legal claims filed by a third party that has suffered bodily injury or/and damage to their car owing to an accident you may have caused. This coverage pays the damages to the third party and also the legal expenses required to defend yourself against the claim. There are stand-alone TPL policies available as well, but it is better to take a comprehensive plan that covers other benefits along with TPL.
  • Legal Liabilities:
    You can enhance the policy coverage with additional premiums to pay the legal liabilities arising from negligence shown by the driver or care staff employed for your vehicle, or the accidental damages incurred by users of your car (excluding the paid driver) and in case of private use of the vehicle, the damages incurred by co-passengers.
  • Additional features:
    Look for policy enhancements that add value to the overall plan. These include motor add-ons, 24/7 roadside assistance, speedy and hassle-free claims settlement process (not exceeding 7 days), online purchase and renewal, and accident help from the insurance provider.
  • The benefits of a good car insurance plan
    The basic benefit of taking a comprehensive motor insurance policy is that it provides security to you and your car every time you take the wheel. While you can account for your own safe driving, there are several unseen dangers lurking at every turn – and your car insurance plan combats them all while protecting you constantly.