The last few months saw a lot of activity in the motor insurance sector with IRDAI coming up with a slew of regulations and innovative changes. One of them was mandatory bundling of third-party insurance for three years when buying new vehicles. Then, it was increasing the minimum personal accident cover from Rs. 2 lakh to Rs. 15 lakh. As per latest directive, the IRDAI has said that vehicle owners are now free to buy third-party insurance and comprehensive car insurance from two different insurance companies. [1]
Post September 1, 2018, IRDAI has allowed insurers to sell long-term third-party and comprehensive car insurance policies. Earlier there were only two types of car insurance policies available – whether you buy car insurance online or offline. Today, there are three varieties of car insurance available to car owners:
- A long-term comprehensive car insurance policy for 3 years bundled with third-party car insurance for 3 years.
- A 3-year third party cover bundled with own damage (OD) comprehensive car insurance policy for a 1-year term.
- Only long-term TP insurance. You can buy a OD cover from the same insurer or different insurer for 1-year or for the long-term if you want to. [2]
When you buy car insurance online, these are the different variations that you get. However, buying a comprehensive car insurance policy is highly recommended to cover damage to your vehicle.
What is comprehensive car insurance?
A comprehensive car insurance policy provides third-party liability cover as well as overall protection to your vehicle against damages in an accident. It offers complete financial coverage to your car against accidental damage, theft and personal accident.
To get extensive coverage you can also buy add-ons such as engine protection cover, zero depreciation car insurance cover, accessories cover, pillion rider accident cover, medical expenses, etc.
With Bajaj Allianz car insurance available on Finserv MARKETS, you can get comprehensive protection for your car against natural calamities, thefts and man-made disasters. Without a comprehensive car insurance cover, you have to pay out of pocket for expensive repairs in case of accidental damage. A little extra that you pay compared to the bare minimum third party insurance, helps you drive and own your car with peace of mind.
Third Party Car Insurance vs. Comprehensive Car Insurance
| THIRD PARTY COVER | COMPREHENSIVE COVER |
|
Low cost of premium |
Premiums are slightly higher |
|
Third-party (TP) claims under ‘no fault liability’ |
Accidental damage to own vehicle or TP |
|
Bodily injury and accidental death caused by the policyholder to TP |
Compensates for more than just vehicular collisions |
|
Property damage caused by the policyholder |
Damages caused due to man-made and natural calamities |
What are included in comprehensive car insurance?
Comprehensive car insurance policy is also known as “other than collision” coverage and it covers the following:
- Accidental damage
- Theft
- Flood damage
- Fire damage
- Glass damages such as broken windshield
- Damage caused due to collision with an animal or bird [3]
- Damage caused by falling objects [3]
- Car damage as a result of natural disasters such as cyclone, hail, windstorm, heavy rain, etc.
- Physical injury or death of third-party or damage to third-party property
Coverage that are excluded from comprehensive car insurance
Though comprehensive car insurance with add-ons provide full protection to the owner-rider, his vehicle and third-party, there are certain limitations and exclusions that are not covered by any type of motor insurance. Those include:
- Normal depreciation of the car
- Mechanical or electrical breakdown
- Damage as a result of normal wear and tear
- Tyre and tube damage. (In case tyre and tube damage causes an accident, the insurance company will only cover 50% of the repair costs)
- Accident caused by a person travelling without a valid license
- Damage caused while driving in a drunken state or under the influence of drugs
- Damage caused by war, mutiny and nuclear attack
A comprehensive car insurance policy makes more sense than buying mandatory third-party insurance because the costs of repairs can be expensive. Before you buy car insurance online make sure to carry out some research on the insurance provider. Ensure that your insurer has a large network of cashless garages and offers add-ons such as zero depreciation cover, return to invoice cover, no claim bonus protection cover, engine protection cover, etc.
With Bajaj Allianz car insurance available on Finserv MARKETS, you can get access to a network of 4,000 plus cashless garages across the country. You can also avail a multitude of add-ons to enhance your coverage at competitive prices.