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What Should I Know About Vehicle Insurance in India?

Navigate the world of motor car insurance in India with clarity. This article breaks down the three essential types of coverage – Third-party liability, Comprehensive car insurance, and Standalone OD Cover.

  • 12 Jan 2024
  • 3 min read
  • 127 views

A car has become more utilitarian than a thing of luxury. It can fit more people, shorten distances, protect occupants from nature’s vagaries, and ensure a comfortable riding experience.
As a proud car owner in India, do you know it is essential to have insurance coverage to operate a car legally? Yes, motor car insurance in India is mandatory. This article is a must-read if you have yet to purchase motor insurance or are confused about which policy to opt for.

Vehicle Insurance in India


Three types of vehicle insurance in India are currently operational. This article looks at each type in some detail.

 

Third-party liability cover:

This type provides basic coverage and is mandatory if you wish to drive a motor vehicle, including a car, a two-wheeler, or a three-wheeler. This policy gets triggered if your car accidentally damages the property of another person. It also pays for the physical injury to a third person or persons.
However, the policy does not cover damage to your car. The premium for this insurance is decided by the Insurance Regulatory and Development Authority (IRDA) and is fixed based on the car engine’s cubic capacity.

 

Comprehensive car insurance:

This policy has dual features. It has the component of third-party liability coverage while also covering damages to the insured car. Comprehensive insurance typically covers damage from fire, vandalism, terrorist attacks, natural calamities, and accidents. However, you must meet certain conditions to ensure the acceptance of your claim.
For instance, at the time of the incident, your insured car’s driver must have been free from the influence of alcohol and carrying a valid driving license.
The best aspect of this type of plan is that you can increase the coverage scope by opting for riders, such as roadside assistance, engine protection cover, and so on.

 

 

Standalone OD Cover:

This policy only covers damage to your car. This cover is considered active only if you have a valid third-party liability plan. You can also increase your plan scope by adding riders to this cover.

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Conclusion

Understanding car insurance policy in India is crucial for every car owner. Whether opting for mandatory third-party liability, comprehensive coverage, or standalone OD cover, each type offers unique benefits and considerations. Make an informed decision to ensure legal compliance and safeguard your vehicle from unforeseen events to maintain your peace of mind.

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