Types of car insurance available in India and their key features!!!

Confused in Buying a Car Insurance??

Have questions in mind like- which insurance product suits best for your CAR? What are the various Car insurance products available in India?

Don’t worry. We are here to address all your queries and explain in detail about different types of CAR insurance products available in Indian Market and which product suites best to your requirements.

Before we start let’s understand what is a CAR insurance and how does it protect your CAR from huge financial loss. As we know that an expensive property requires more safety against theft, damages, loss etc, and unfortunately if any of these events encounters, we incur a huge financial loss. Insurance product plays a vital role in mitigating the financial risks by covering some or complete cost of the property.

Why to buy a CAR insurance in India?

In addition to the financial protection that you enjoy after purchasing a CAR insurance, it is also an obligation to have a CAR insurance as per legal regulations. Non-obedience of same, may lead to a legal penalty. However, there are several types of CAR insurance products available and we may choose the best for our CAR based on various parameters.

The claim and settlement process may differ slightly from different insurance providers. However, in India all insurance companies are governed by a central body which is responsible for monitoring and providing guidelines to operate insurance services on a transparent platform.

Types of Car Insurance in India

  1. Comprehensive insurance:

A comprehensive car insurance provides financial coverage to your CAR in an inclusive manner. It provides an overall coverage to your CAR except the damages encountered due to a direct collision of CAR or an accident. A comprehensive car insurance does protect your CAR against indirect damages, theft, the plastic damage, glass breakage, metallic part damage and body paint impairments.

A comprehensive CAR insurance in India can be availed for 15 years and there are no restrictions on the number of claims that can be raised within this period.

However, in case of comprehensive insurance, the insurance company may not pay the complete amount and hence is not considered a cash less insurance.

Broadly a comprehensive CAR insurance in India covers Robbery, Wreckage, Fire accidents, Damage incurred due an animal or a bird hit, Glass Impairments, Damages due to Natural disaster and Damage due to indirect collisions against an object.

This product is good for Personal Cars which and wide-range of risks in long run.

  1. Zero Debt Insurance:

Zero Debt Insurance is also called as a cash-less or bumper to bumper CAR insurance, the primary feature of this insurance product is that it allows to claim the complete amount for the damage for which only a nominal fee is charged by the insurance company. However, compared to comprehensive insurance plan, the total period allowed for Zero debt insurance is shorter (4 to 5 years only) and the maximum number of claims in a year are generally restricted to 1 or 2 times.

The premium of Zero Debit Insurance may pick slightly greater amount than the comprehensive plan due to high financial risk coverage.

This product is good to opt for Personal Cars as wells as Cars deployed on Rental services.

3. Third Party Car Insurance:

The Third-Party Car Insurance covers any legal financial obligation enforced on the CAR’s owner due to an incident causing harm or damage to other’s property or accidentally resulting a physical injury to another person. The third-party Car insurance does not cover any damages to your own CAR. However, the third-party car insurance was made mandatory in India under the Motor Vehicle Act in 1988.

Leave a Reply

Your email address will not be published. Required fields are marked *