Road safety is a major concern in India, where the number of vehicles on the road increases day by day. The more staggering fact is that the country has the highest number of deaths in road accidents across the globe. One in every 10 deaths is reported in our country.
While there can be no substitute for responsible and safe driving, a comprehensive motor insurance policy can cover your vehicle and the driver against unforeseen circumstances. It also covers liability against damages to third parties or their property. As per The Motor Vehicle Act of 1988, minimum third-party car insurance is mandatory for all vehicles plying on Indian roads.
Why do you need comprehensive motor insurance?
Paying for the repair of your car when it takes a hit can be a costly affair. Whether it is because of your own negligence or someone else’s, it can set you back by a considerable amount of money. However, if you have insured your car with a comprehensive motor insurance policy, you don’t have to pay for these repairs from your pocket. In cases where your car is damaged beyond repair, you are compensated with the insured declared value (IDV) of the vehicle.
Apart from the damages to your vehicle, the motor insurance also covers hospitalisation and treatment charges for the driver. Not everyone escapes with minor cuts and bruises in an accident. You can end up paying hefty medical charges from your pocket in case of serious injuries. Your car insurance policy will act as your financial bodyguard and pay your hospital bills.
Risks covered under comprehensive insurance
Here's a breakdown of the incidents that are covered under a comprehensive car insurance policy:
- Own damage from accidents: Covers damage to your car due to collision, overturning or impact.
- Natural disasters: Loss or damage from floods, storms, earthquakes, cyclones, etc.
- Fire and explosion: Any damage from accidental fire, lightning, or explosions.
- Theft: Full compensation if your car is stolen and not recovered.
- Vandalism and riots: Losses due to social unrest or deliberate damage.
- Third-party liability: Covers bodily injuries, death, or property damage to others involved in an accident with the insured vehicle.
- Personal accident cover: Financial protection for the owner-driver in case of injury or death.
Risks not covered under comprehensive insurance
While comprehensive insurance offers wide coverage, it does not include everything. Being aware of exclusions helps avoid surprises during claim settlement.
Typical exclusions include:
- Normal wear and tear: Depreciation, mechanical breakdowns, or aging of parts are not covered.
- Driving under the influence: Accidents caused while driving drunk or under the influence of drugs are not eligible for claims.
- Unlicensed driving: No coverage if the driver does not have a valid driving licence.
- Electrical or mechanical breakdown: Failures not caused by external impact are excluded.
- Consequential losses: Indirect damages, like engine failure from water ingress post-flooding, may not be covered unless additional riders are bought.
Reading the fine print in your four wheeler insurance document is crucial to understanding what is covered and not.
Other features and benefits
Financial prudence lies in covering your drive with a comprehensive car insurance policy. You have to declare an Insured Declared Value (IDV) of your vehicle while insuring it. Compare and check premium with various insurance companies before buying one. Here are few factors which you should look out for before selecting a motor insurance policy:
- Cashless service at network garages
With a comprehensive car insurance policy, you can get cashless repairs and other services at network garages of the insurance company. For example, ICICI Lombard’s car insurance makes you eligible for cashless services at more than 3,500 network garages across the country.
- Road side assistance in case of breakdown
If you are secured with a car insurance policy, you don’t have to panic when your car breaks down in the middle of the road. Most of the insurers provide roadside assistancein case of breakdowns. Just give a call and you will be helped in repairs, accommodation and more till your car is fit to run again.
- Online purchase facilitates affordability
Buying a motor insurance policy online results in lower premiums. The insurer passes the benefit of lower operating costs on online transactions to the customers. Not only that, the online policies are paperless, convenient and come into effect almost immediately. When the time comes for renewal, that can also be taken care of online and without any hassles.
Conclusion
It’s imperative to get your vehicle covered with a comprehensive motor insurance policy to ensure a worry-free and safe drive. While third party car insurance fulfils your legal obligations, a comprehensive policy ensures your car is protected, your finances remain stable and your journeys continue uninterrupted. With the added perks like no claim bonus, roadside assistance and coverage against theft and natural disasters, investing in comprehensive four wheeler insurance is a wise and essential decision for every responsible driver.
FAQs
1. Is comprehensive insurance mandatory in India?
No. Only third-party car insurance is mandatory by law. While comprehensive insurance is not a must, it is crucial for the safety of your vehicle and financial health.
2. Can I switch from third party to comprehensive insurance?
Yes, you can switch during renewal or even mid-policy by contacting your insurer and paying the difference in premium.
3. What is the role of NCB in comprehensive policies?
NCB (No Claim Bonus) rewards safe drivers. If you don’t make any claims, you get a discount on your premium when renewing your four-wheeler insurance.
4. Does comprehensive insurance cover flood damage?
Yes. Natural calamities like floods are covered under comprehensive plans.
5. Will I get the full cost of my car back in case of theft?
You will only get the IDV (Insured Declared Value), which is the current market value of your car minus depreciation, unless you have a return-to-invoice add-on.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. 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.