Valid car insurance coverage is a legal requirement in India and serves as a safety net in case of theft, damages and accidents. For beginners, understanding the characteristics of car insurance might seem challenging.
This car insurance guide will delve into the various aspects of four-wheeler insurance in India.
What is Car Insurance Coverage?
Car insurance is more than just a legal contract between a policyholder and an insurance company. It is a financial plan designed to safeguard your four-wheeler and provide financial relief in case of unexpected events.
A car insurance policy, especially a comprehensive car insurance policy, ensures peace of mind by providing coverage for damages from theft, third-party liabilities and accidents. Having four-wheeler insurance is not just a financial decision; it is also a legal requirement. According to the Motor Vehicle Act, all new four-wheeler owners must have at least a long-term third-party liability car insurance plan in India.
Types of Car Insurance Coverage
Insurance companies offer various motor insurance options to fit the diverse requirements of four-wheeler owners. Let’s look at three main types of car insurance policies available:
Third-Party Car Insurance
This car insurance policy provides coverage against liabilities to third parties for property damage, injuries and death when your four-wheeler is involved in an accident.
Third-party insurance is mandatory for all four-wheeler owners under the Motor Vehicles Act. The IRDAI regulates third-party car insurance premiums, making it a cost-effective solution for those seeking basic coverage.
Standalone Own-Damage Policy
This policy protects against damages to four-wheelers caused by natural calamities, theft, accidents, and fire. Own-damage insurance is a suitable option for those who already have third-party vehicle insurance but are looking for additional protection for their four-wheeler.
Comprehensive Car Insurance
This policy provides the most extensive coverage and is considered the best car insurance for full coverage. A comprehensive car insurance policy covers almost all kinds of losses and damages, including accidents, natural disasters, theft, and third-party liabilities, under one policy.
Add-On Covers: For Full Coverage Car Insurance
Insurers offer add-on covers to enhance your insurance policy coverage. Some common add-on covers available with car insurance include:
- Engine protection cover
- Nil depreciation cover
- NCB retention cover
- Key protect cover
- EMI protection cover
- Consumables cover
- Pay as you drive cover
Understanding Claim Process in Car Insurance
The claim procedure plays a pivotal role in choosing the best car insurance for full coverage:
- The first step should be registering a claim with your insurance company before getting any repairs done and within 24 hours of the incident.
- Your insurer will dispatch a surveyor to assess the extent of the damage and estimate the repair cost.
- Submit relevant documents such as repair receipts, a copy of the FIR in case of accidents, a driving license, a policy document, a vehicle registration certificate, and more.
- Wait for your insurance claim approval.
- After claim approval, your insurer will give you the reimbursement amount for a reimbursement claim or settle the bill with Network Garage directly in case of a cashless claim.
To Wrap It Up
To choose the best four-wheeler insurance policy, consider several aspects, including type of coverage, add-on covers, picking a suitable IDV, checking network garages, comparing car insurance full coverage cost, checking claim settlement process and more. Choosing the right policy will ensure you get the best protection for your four-wheeler.
