Do you want to understand the basics of motor insurance? It is mandatory to have motor insurance in India before plying your vehicle on its roads. To make it reachable to all, the IRDAI offered two variants of motor insurance. One is third-party insurance, which is more affordable but offers third-party coverage only. The second is comprehensive motor insurance that offers coverage for own vehicle damage as well as the third-party cover. Let us now learn more about a comprehensive vehicle insurance policy:
What is Comprehensive Motor Insurance?
A comprehensive motor insurance policy protects your vehicle against all risks and losses. It is a kind of insurance that covers both third-party liabilities as well as own damage to the insured vehicle. The coverage includes damage or loss due to fire, theft, natural calamities, collision, accident, etc.
What is covered under Comprehensive Motor Insurance?
The coverage under a comprehensive motor insurance policy includes:
Outright loss or damage to your vehicle due to fire, theft, or natural calamities.
Damage or loss due to collision, accident, etc.
Expenses incurred in connection with recovery, storage, and delivery of your vehicle after an accident.
Losses and damages incurred to your vehicle due to vandalism and man-made hazards.
Losses and damages incurred to third-party vehicles or property are also covered.
In case your vehicle gets damaged while in transit via land, air, or water, the insurer pays for its repair.
A comprehensive vehicle insurance policy also covers its owners and drivers in case they get injured or die in a vehicle accident.
What is not covered in a Comprehensive Vehicle Insurance Plan?
You will not be covered by a comprehensive motor insurance policy if your vehicle is damaged or lost due to:
An accident caused by you or someone else while driving under the influence of drugs or alcohol.
An accident caused by you or someone else while driving without a valid license or permit.
Consequential damages are also not covered. This means if your vehicle gets damaged at the time of towing, these damages are not covered.
Electrical and mechanical breakdowns are also not covered.
Damages due to regular wear and tear are also not covered.
Damages or losses caused to your vehicle due to war or nuclear perils.
The non-accidental damages to the tires are not covered.
Benefits of Comprehensive Vehicle Insurance Policy:
Here are the benefits that you get with a comprehensive vehicle insurance policy:
Complete Insurance Coverage: This provides complete coverage to your vehicle. This means that your vehicle is insured against all kinds of losses, including third-party liability, damage, and theft.
Cost-Effective Insurance: With this, you get coverage for both third-party and own vehicle damage. In this way, you do not need to purchase separate covers. Therefore, it is the most cost-effective car insurance plan.
Peace of Mind: You get peace of mind while travelling that your vehicle is insured and you will get financial help in case of any mishap.
Advantage of No Claim Bonus: With a comprehensive car insurance policy, you get the benefit of a No Claim Bonus. This means that if there are no claims made against your vehicle in a given year, you will get a discount on the premium during your policy renewal.
Riders available for Comprehensive Motor Insurance Policy:
To enhance the coverage of your comprehensive motor insurance policy, you can add riders. However, for every rider benefit, you need to pay an additional premium. Here are some of the useful rider benefits available for this motor insurance plan:
Insurance Coverage for Co-Passengers: If you carry a co-passenger in your car, then you can add this rider benefit.
Key Replacement Rider: This rider benefit enables you to get the benefits of the replacement of vehicle keys in case the original ones get missing.
No Claim Bonus Protection: This rider allows you to protect your NCB in case you need to claim your policy.
Roadside Assistance: In case your vehicle gets stuck on the road due to an accident, vehicle key loss, flat tire, empty fuel tank, etc. then this rider helps you.
Engine and Gearbox Protection: With this rider, your vehicle's engine and gearbox are protected in case they get damaged not only because of an accident but even in all other situations.
Zero Depreciation: Under zero depreciation add-on cover, the depreciation of your vehicle is not considered in case of claim settlement. However, this rider is available for vehicles that are less than 5 years old. Some insurers also offer this additional benefit for vehicles up to 7 years of age.
Return of Invoice: This add-on cover provides the benefit of getting an Insured Declared Value (IDV) equivalent to the vehicle's invoice price.
These are some of the riders available for a comprehensive vehicle insurance policy. There are numerous other riders as well, such as tire protection cover, consumable cover, etc. You can select rider(s) as per your requirement.
Who should buy a Comprehensive Motor Insurance Policy?
If you fall under any of the following categories, you must buy a comprehensive car insurance policy:
Owner of a new car
Owner of a fancy car
Not confident about your driving skills or a new driver
Frequent road trippers
If you drive your vehicle in a high-risk area
If you live in a metropolitan area
Conclusion
These are some of the basics of a comprehensive vehicle insurance policy. However, for a proper list of inclusions and exclusions of your comprehensive car insurance policy, you must contact your insurance company, because these features may vary from insurer to insurer.
