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Insurance Article

Did You Know About The Different Types Of Car Insurance Covers?

April 15 2015

1. Zero Depreciation Cover

When you register a claim, standard insurance policies deduct depreciation on the replaced parts. However, if you opt for a Zero Depreciation Cover, you can receive full claim coverage on the value of parts replaced. This will enhance the claim amount and you will have to pay less money out of your pocket.

This is an optional feature available at a marginal extra cost and is generally applicable for the first few claims as per the terms of insurance.

2. No Claim Bonus

In case you have not made a claim in the entire year, an insurance company offers you a discount on the next year policy premium. This lowers the insurance premium that you need to pay on your current policy. No Claim Bonus is generally transferable from one insurance provider to another.

3. Own Damage Cover


This is the key component of your car insurance. In case your car is damaged due a man-made or natural disaster, the Own Damage Cover will compensate for the expenses (based on the provisions of the policy) borne towards repairs or replacements. This covers your losses due to calamities like earthquake, storm, fire, explosion, etc.

While opting for the Own Damage Cover, go for the highest sum assured available for your vehicle type and age. Remember that it does not make sense to opt for lower cover only to save a few hundred rupees of insurance premium.

4. Third Party Cover

The Indian Motor Vehicle Act makes it compulsory to avail Third Party Insurance Cover. While you personally do not benefit from this cover, it covers legal liability caused by damage to third party property using your own vehicle.

Premium for Third Party Cover depends upon engine capacity of the vehicle. Higher the engine capacity more is the insurance premium.

5. Personal Accident Cover

A report by the National Crime Records Bureau in India highlights that over 137,000 people were killed in road accidents in 2013 alone. This is more than the no. of people killed in all our wars together. A Personal Accident Cover generally provides cover against Accidental Death or Permanent Total Disability arising due to accident. In addition, you can opt for a Personal Accident cover of up to Rs 2 lakhs for the co-passengers also.

5. Additional Covers

In addition to the standard covers, one can avail Additional Covers for electrical/non-electrical accessories such as fog lights, music system, seat covers, etc. In case you have made modifications to your fuel system and switched over to a bi-fuel variant such as CNG, you can opt for a cover for the same too.

Availing motor insurance has never been so easy! You can design your own car insurance plan using the online car insurance calculators and quote generators available on insurance company websites.

Choose a Comprehensive Car Insurance Cover including a Personal Accident Cover. This would financially safeguard you from many eventualities related to losses and will give you peace of mind. Click here to know more about motor insurance.

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