The Indian law mandates that all car owners in India have a third-party insurance policy. This reduces the policyholder’s financial responsibility for any harm a third party suffers due to the insured car. A surveyor will examine the damages and verify the repair costs before the insurance company pays the claim.
A comprehensive car insurance policy is a package that covers both parties involved in an accident. It provides comprehensive coverage for damages to the insured car and third-party liabilities and policyholders. While it is not mandatory, a comprehensive policy compensates for third-party liabilities from accidents caused by the policyholder.
Difference between CTP and comprehensive cover
Comprehensive insurance comes at a higher price but provides complete coverage. Its salient features are listed below:
- Complete coverage for both parties involved in an accident
- Offers additional add-ons
- No claim bonus if a policyholder doesn't make a claim in a policy year
Third-party car insurance is a basic policy that covers the following:
- Offers protection to a third-party car or person who met with an accident involving you
- Personal accident coverage for your injuries, but it doesn't cover the damages to your car
- Premium rate is low and pre-determined by the IRDAI, making it a cheaper option
- Suitable for those driving an old vehicle or people who drive their car less often
- Doesn't offer any customisation options or add-ons
Although the premium is comparatively higher than a third-party insurance policy, a comprehensive car insurance plan provides a wider scope of coverage.
Is compulsory third-party cover included in comprehensive insurance?
A comprehensive motor insurance policy integrates third-party coverage.
- Comprehensive car insurance combines both third-party and own damage or first-party insurance
- Actively provides complete protection for third-party liabilities and offers coverage for damages to the insured car from various causes like accidents, falling objects, fire, and vandalism
- Covers damages to third-party property and accidental physical injuries
- Covers damages to the insured car from natural disasters, such as cyclones, floods, earthquakes, and man-made disasters like thefts
- Provides add-on covers like engine protection, medical expenses, accessories cover, and zero depreciation cover to increase the scope of coverage
- You don’t have to purchase third-party insurance as a separate policy
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.