Four Wheeler Insurance

Car Insurance: The primary use of Car insurance is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. Car insurance covers incidents like theft of the vehicle, damage to the vehicle sustained from events like weather or natural disasters, and damage sustained by colliding with stationary objects. 

How does Car Insurance work in India?
In simple terms, Car insurance is an agreement between the insurance company and the car owner. In this agreement, the car owner ensures to pay premiums timely and in return the insurance company covers for any loss or damage caused to the car. Car Insurance is mandatory in India regardless of the type of vehicle, whether its commercial or private/ personal vehicle. Mostly there’s a tie-up between the car insurance companies and the car manufacturers. They provide instant quote and insurance to the car buyers at the time of purchase and then the renewal is processed accordingly There is a wide range of options available for car insurance in the market. One should compare different plans available in the market and choose which suits them best. And if you are still unable to decide which one to opt for its good to seek help from consultants like us, as we can guide you with the best possible option as per your need. 

Types of Car Insurance in India

There are mainly two types of car insurance.

  •    Third Party Liability Insurance cover– Third-party liability insurance offers limited protection and is mandatory in India. This type of car insurance protects you against the costs incurred from the damage done by your vehicle to another vehicle, property or person and it does’t cover damage done to your own car. 
    •    Comprehensive Insurance cover– Comprehensive car insurance available in the market offers cover against damage to the vehicle, death of the driver or passengers and damage caused by the vehicle to a third party vehicle, property or person.

Features covered under a car insurance policy

  •    Bodily injury- It offers cover for any bodily injury incurred from an accident involving the insured’s car.
    •    Damage- It offers cover for the damage incurred to the car either due to an accident, theft or certain natural calamities
    •    Third party property damage- It pays up for the damage incurred by a third party vehicle involved in an accident with the insured vehicle
    •    Death- It also offers cover for the death of the driver/ passengers present in the insured vehicle at the time of accident or calamity

Advantages of Car Insurance

Listed below are the advantages of car insurance.
•    It provides benefit in case of death as a result of an accident
•    It covers the repair cost of vehicle repairs due to damage caused in an accident.
•    It covers any damage caused by reasons other than an accident, for example, theft, fire, etc.
•    It offers cover for damage caused to third party
•    It  covers third party liabilities
•.   No claim bonus

Here are some of the car/motor insurance clauses and exclusions.

  •    Any issues related to the vehicle due to the general ageing of the car
    •    Mechanical breakdown of the car
    •    The policy won’t offer any cover for the damages incurred from using the car outside the geographical location of the country
    •    No cover will be offered if the person who was driving the car was not having a valid driving license
    •    No cover will be offered if an accident occurs while the driver was under the influence of alcohol or drugs
    •    No cover will be offered if the damage was incurred to the vehicle during a war or nuclear attack
    •    The policy does not offer cover if the car was  being used for purposes other than what was mentioned in the policy