Car Insurance Policy, Car Insurance Policy | Car Insurance: You must have seen a sinking car in the sinkhole! Therefore, get such an insurance, in which cover is available on every loss.
Get vehicle insurance with all types of cover
- By the way, insurance of all vehicles is necessary.
- There is also a fine of two thousand rupees for not having insurance.
- There are two types of vehicle insurance. Comprehensive and third-party.
In India, monsoon usually provides relief from the scorching summers. However, incessant rains in many cities also create many problems. Recently, a video from Mumbai has gone viral in which a car was slowly sinking into a sinkhole after torrential rain. It was a scary scene not only for the car owner but also for the millions of people who watched the video. This incident highlights the need to be aware of the hazards of natural disasters not only to our lives but also to our vital assets. It also reminds us that we have little control over nature but we can certainly take measures – such as insurance, which can provide us financial relief in times of crisis.
Although the car shown in the viral video was eventually pulled out with the help of local authorities, it is certain that it may have developed serious defects due to its sinking. Comprehensive car insurance policy is designed keeping in mind the financial costs borne by the owners of the vehicle due to such risks and such sudden event.
As per the Motor Vehicles Act in India, all vehicles plying on the road are required to be insured. Driving a vehicle without car insurance may attract a fine of Rs 2000 under the new Motor Vehicles Act 2019. Therefore, car owners must go for an insurance policy that covers various types of damages.
Types of Automobile Insurance Products
There are mainly two types of auto insurance products available in the market – comprehensive car insurance policy and third-party car insurance. As the name suggests, a comprehensive insurance policy offers more coverage that covers the costs of damages not only to your car but also to third parties – other than you and the insurance provider, The costs incurred by the company are also covered. It also covers losses due to theft, fire damage, dacoity, man-made and natural calamities. Apart from this, you can also avail additional cover at an additional cost to strengthen your comprehensive car insurance policy.
Third-party insurance is required by law and it covers you against legal liabilities for damages caused to third parties. It covers injury, loss, disability and third party death due to your vehicle. However, you cannot claim insurance for self-injury or damage caused to your car. These will be covered by a comprehensive insurance policy only. That said, a comprehensive insurance policy also covers all the liabilities that are covered in a third-party insurance plan.
Scope of damages to be covered under a comprehensive policy
Generally, in a comprehensive car policy, you can claim damages caused to most parts of the car. You can make a claim for damages caused to your car seat, windshield and any other part that may be caused due to flood, cyclone, storm etc. However, it is also possible that you may not be able to claim damages due to water entering your car’s engine due to monsoon or floods. In case of vehicle damages caused by hydrostatic locks if the engine is flooded or when your vehicle is submerged in water, they may not be covered in the Standard Comprehensive Plan. However, the Engine Protection add-on cover offered as a paid optional facility for your Basic Comprehensive Plan can help you in such situations. The add-on cover, which is available in the market under various names, can protect your finances in case of engine damage in case of waterlogging. If your vehicle gets washed away or completely lost in a natural calamity like flood, earthquake etc., you can claim the damages as per the terms and conditions included in the insurance product you choose.
Consider these add-ons to strengthen your policy
Although most damages are covered under a comprehensive insurance policy, you may need to buy additional covers or add-ons to get protection against the cost of theft, engine damage, breakdown assistance, etc. At a nominal cost, these add-ons can give you peace of mind. Damage caused by flooding can be compensated for with the Engine Protection add-on. With personal accident cover, one can get compensation for injuries or death caused due to accident. The Breakdown Assistance add-on can help you with breakdowns, punctures, lost keys, locking of car doors, etc. As your vehicle gets older, its value decreases. Zero-depreciation add-on cover is provided to provide complete coverage at the purchase price, instead of the reduced cost of the car. Especially it is offered for new cars.
Apart from this, you can also avail the Accessories Cover add-on in which you can claim in case of damage to valuable accessories like LCD display, stereo, reverse camera etc. You can also get Consumable Protection Cover, which helps you claim damages for repair or replacement of nuts and bolts, screws, air conditioner gas, bearings, engine oil, oil filter, fuel filter, brake oil and other associated parts. can help.
Car tips to be followed during monsoon
If you live in an area prone to flooding, you should be mindful of where you park your car as well as when driving on waterlogged roads. Do not attempt to start a car that is parked in a waterlogged area as this may damage the engine. After damage occurs, take your car to an authorized garage and not to a local mechanic, as only authentic parts replacement are accepted by insurance companies and not unauthorized parts replacement. While driving during monsoon, keep the windows open slightly and keep the central locking system in the unlocking position.
In the end
To mitigate the impact of the associated financial risks, a comprehensive car insurance policy with significant add-ons should be preferred over mandatory third party plans. Doing so will cost you a little more, but this cost is not much compared to the benefits it brings in times of crisis. To decide you get the best deal, compare different insurance products and buy the insurance product that best meets your needs. However, don’t blindly buy a policy just because of the cheapest premium, but also consider the features of the policy and the claim settlement track record of the insurer while finalizing your buying decision.
(The author of this article is Adil Shetty, CEO, BankBazaar.com)
(Disclaimer: This information is being given on the basis of expert reports. Markets are subject to risks, so take your own advice before investing.) (This article is written for informational purposes only. should not be construed as financial or other advice)
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