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