Comprehensive Car Insurance is no longer a luxury, it has become a necessity now
As per the Motor Vehicles Act of 1988, it is mandatory for all the vehicles plying on Indian roads to have a minimum of third-party motor insurance policy. It covers the vehicle owner against any legal and financial liabilities that may arise in case his/her vehicle is involved in an accident that may cause bodily injuries or property damage to an unknown third-party.
However, a standalone third-party insurance is of little help when it comes to protecting your own car against the damages due to any natural or man-made calamities. According to the data collected from the Ministry of Road Transport and Highways, more than 9 lakh road accidents took place in India during the last two years.
Such a horrifying statistic suggests that it’s prudent to consider a comprehensive motor insurance plan, which provides a 360-degree protection to your car throughout its life. Its importance can be further be emphasized through the following points:
1. It offers the highest level of security to your car
Unlike the third-party car insurance, a comprehensive plan offers a superior coverage by compensating you in case your vehicle suffers any damages during an accident. You can either claim a reimbursement from the insurance company later or take your car at a network garage for cashless repairment of the vehicle.
2. Compensation in case of death or disability
A comprehensive car insurance policy also covers the death and bodily injuries to the owner-cum-driver of the insured vehicle. In case, you suffer from death or, any partial or permanent disability post the accident of your car, the insurance company will pay full compensation amount to the nominee as mentioned in the policy.
3. Covers legal and financial hurdles
Apart from covering the damages to your own vehicle, a comprehensive car insurance plan also covers the legal liabilities that may arise in case of an accident. It provides the mandatory third-party insurance cover required to drive a vehicle in India and also covers the legal and financial obligations for the tribunal hearings of accident-related cases.
4. Protects your car against fire accidents
A comprehensive car insurance policy also covers your vehicle against the damages caused by all types of fire-related accidents. Although, it does not include mechanical defects, it does cover the fire caused by engine overheating. You’re provided full compensation for your car up to the Insured Declared Value (IDV) of your vehicle in case of such an unfortunate incident.
5. Secures your car against theft
If your car or any of its components gets stolen, then a comprehensive insurance plan will cover the entire losses incurred due to the theft. The car insurance company will provide you full compensation for your loss during such a scenario and in case your entire car gets stolen, you will be compensated with the entire IDV of your car.
6. Protection against vandalism
In case your vehicle is vandalized in an unfortunate event of civil disturbances or riots, then the comprehensive car insurance policy will work as a saviour by providing full reimbursement for the repairment of your vandalised car. In case your car is damaged beyond repair, the insurer will provide you the full market value of the car.
7. Full protection from flying objects
Imagine a situation where a projectile like a ball, tree, brick or a stone falls on your car and shatters the windscreen. Even in such an unpredictable situation, a comprehensive cover for your vehicle would offer full coverage for your losses. It will include compensating the entire damage to your vehicle, comprising of the window panes and windscreens.
8. Full protection against the natural calamities
The comprehensive cover also acts as a cushion against the natural calamities that can render your precious car irreparable. For example, marvels like earthquakes, cyclones, floods and hailstorms etc can destroy your car beyond repair. In such a scenario, you will be provided a big relief by your car insurer in form of a compensation against the damages inflicted on your car by the natural calamity.
Since, a standalone third-party insurance has many limitations, a comprehensive cover becomes crucial for the all-round protection of your car. It ensures maximum coverage for your vehicle by providing financial assistance for expensive repair works, thereby enhancing your peace of mind and reducing your anxiety about your car.