Car insurance is a must on dangerous Indian roads. Here we tell you all you need to know about this essential cover
India has a massive road network that covers 54,72,144 kilometres. The roads are used by a billion people a day, and are regarded as some of the most unsafe in the world. According to a report published by the Transport Research Wing of the Ministry of Road Transport & Highways, a total of 4,80,652 accidents took place in 2016, resulting in 1,50,785 deaths.
These statistics mean that nearly 413 people died each day in as many as 1,317 road accidents, or 17 fatalities every hour. The figures are shocking and clearly convey how dangerous and unpredictable our roads can be. Therefore, it is necessary to drive out with a comprehensive car insurance so that you and your car are ready to face any situation.
Here we will tell you all about the various types of car insurance and what they generally cover.
Types of Car Insurance
Third Party Car Insurance
Third party car insurance is mandatory by law. A vehicle plying on the road without this insurance is deemed illegal. It protects the policy holder against any liabilities arising out of an accident involving a third party.
The cover protects the holder against liabilities arising out of injury/death of the third party or any damage to property. It does not, however, cover the policy holder against expenses incurred in his treatment or expenses incurred in repairing damage to the vehicle.
Comprehensive Insurance
This is the most complete form of car insurance available in the market. It not only provides third party coverage, but also provides cover to the policy holder, their car and co-passengers (if any). This insurance also insulates the insured from losses arising out of natural or man-made calamities and even comes with a personal accident cover, that offers compensation if the insured sustains injuries or dies.
Add-on Covers
There are also additional covers, or add-on covers, that can be taken by the insured to further improve his insurance coverage. These covers are only available with a comprehensive car insurance policy. Here we explain some of them and their benefits:
- Roadside Assistance Cover – This cover can be extremely useful for those who undertake long trips to unfamiliar locations. In the event of the insured’s car suffering from minor issues such as a flat tyre, empty fuel tank or battery drain, this cover will provide assistance and in some cases even arrange for accommodation.
- Zero Depreciation Cover – A popular add-on among car insurers. This cover gets the owner the full value of the replaced parts, negating the effects of depreciation. However, this is only available for cars that are not more than three years old.
- NCB Protection Cover – No Claim Bonus (NCB) is basically a reward given to the insured by the insurer for not making any claims in a year. This reward is usually given in the form of premium reduction the following year, the percentage of reduction keeps on increasing every year till it reaches a maximum of 50% on the premium payable.
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