Car insurance, also known as auto or motor insurance is an insurance policy that protects you against losses incurred if your car gets damaged from unforeseen events like an accident, theft, natural or man-made disaster. It also provides you with a financial shield in case any damage is done to a third-party person or property. Car insurance is very important and crucial in India.
What are the Features of Car Insurance Policy?
It is crucial for car drivers to know and understand the features of car insurance to make the most of it.
- Third-Party Liability:
Car insurance policy covers any bodily injury or death or property damages of any third party that may arise out of an accident with your insured car. The Motor Vehicle Act mandates having this motor insurance policy for every car owner, and in its absence, you will have to pay a penalty if caught by the traffic police. The policy does not cover any damage that is done to your vehicle.
- Comprehensive Car Insurance Policy or Package Policy:
It protects you and your vehicle against a number of risks along with third-party liabilities. Any damage caused to the vehicle due to an accident, theft, natural calamity or man-made disaster is covered. Likewise, the death of the driver and/or passengers inside the vehicle in the event of an accident are covered. Though not a mandatory policy, it is advised to have comprehensive coverage for your vehicle.
- Insured Declared Value:
IDVor the Insured Declared Value of your car is the sum you can claim in case of total loss or damage to your car. IDV is calculated on the basis of its depreciation rate. Calculated the basis manufacturer’s listed selling price after deduction of depreciation as per age of the vehicle.
- Premium:
It is the amount you pay for the insurance. It depends on many factors like the model and age of the car, its fuel type, the city where you reside, your age, profession, etc. You can use your NCB points and other discounts to cut down on your premium.
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Cashless claim:
If you get your car repaired at one of our network garages, you will not have to pay for it. The repair bill will be taken care of by us. This facility is referred to as a cashless claim.
