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Insurance Article

Leave your driver’s anxiety behind

July 09 2019

A motor insurance policy will keep you secured against any type of legal or medical contingencies, arriving due to reckless driving or unavoidable calamity

car worry free

If you’re driving across Whitefield in Bangalore or around Marine Drive in Mumbai, there is a high possibility that you’ll come across these 3 things - traffic that takes an eternity to disperse, a jaywalker who has to make his way through the traffic, and a reckless driver who has to overtake every other vehicle on the road. Add to this the degrading conditions of the roads of our country, and being a driver becomes quite a task.

The year 2017 saw the death of 1.49 lakh people due to road accidents which roughly counts for the entire population of Shillong, the capital of Meghalaya. Accidents or their causes cannot be predicted but one can take certain precautionary measures; having a motor insurance plan will definitely help you drive worry-free and forget about the what-ifs.

What constitutes car insurance?

Based on the coverage, there are two types of motor insurance - third party liability policy and comprehensive car insurance policy. The third-party liability coverage pays for the losses or damages caused by your car to any third party during a mishap. On the other hand, a comprehensive policy, along with the third-party liability also covers the losses or damages caused to your own car in case of an accident.

A comprehensive motor insurance plan provides coverage for the damages inflicted to the policyholder’s vehicle, arising out of accidents, vandalism, riots, natural disasters and calamities, loss due to theft and personal accident. A comprehensive motor insurance hence provides an all-around protection to the insured person and his/her vehicle, and thus, enabling them to drive their car stress-free.

What is the need for car insurance?

With expanding formal sector employment, increasing disposable income and easy financing solutions, owning a car is no more a distant dream for the Indian households. Vehicle density seen on Indian roads is greater than the carrying capacity of our current road network. Along with this increased vehicle density, the chances of mishaps and accidents have also increased, thereby, increasing the need for car insurance.

Adherence to the law

As per the Motor Vehicle Act of 1988, a minimum of third-party liability cover is mandatory for every vehicle plying on Indian roads. The third-party liability cover is the arrangement between the insured and the insurer wherein the insurer promises to cover the costs of damages or losses incurred to any third party (in lieu of a price called the premium) arising out of the mistake or negligence of the policyholder or first party.

Takes care of your liability

The mandatory third-party motor insurance essentially guards a car owner from the legal, financial, and medical liabilities that he/she can incur in case of an accident or a collision. The third-party liability cover policy takes care of the liability you owe to the aggrieved party, in case of a loss or damage to the property, bodily injury, or disability caused at your fault. However, the third-party insurance does not cover the policyholder for any loss or damage to his/her own car or property in case of an accident or theft.

Reimburses the damage

While a third-party insurance covers the damages inflicted to the third party, a comprehensive car insurance takes care of the damages and losses to your own vehicle as well as damges caused to third party.

Cover the medical costs

In case of a major accident causing bodily injuries, the cost of hospitalisation, surgeries, treatment etc. can soar so high that it can significantly deplete your savings. Buying a car insurance will keep you financially protected from such medical expenses. Depending upon the terms, conditions, features and add-ons, the car insurance policy can also reimburse the medical expenses for the treatment of your co-passengers as well.

A car insurance, hence, covers your expenses in the event of vehicle damage, theft or bodily injuries to driver, passengers, or pedestrians. By protecting you against all such contingencies, it lets you drive sans souci and concentrate only on the roads ahead of you.

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