Nowadays, it has become more crucial to know about the multiple aspects that impact you as a vehicle owner. Vehicle insurance forms are up to be an inclusion in this list. First-time car owners or people who wish to buy a first-hand or used car always end up questioning about vehicle insurance and why there is a need to have the vehicle safeguarded while opting for vehicle insurance.
According to the Ministry of Transport, the total number of road accidents recorded in 2019 was 449,002[1]. This is a concerning statistic, especially since the number of accidents increases day by day. If you meet with an accident or any uncertain incidents involving vehicle damage, it is sure to impact you financially in terms of spending on repairing your vehicle or paying the third party for damages.
Car insurance is a must to address this issue for every private car owner. While there are plenty of street setbacks that harm both travelers and vehicles alike, having appropriate insurance can help the owner to be protected from all types of liabilities that could arise from accidents, such as damage to the car, property, or for that matter, any individual.
As per new IRDAI rules, long term comprehensive policy can be bought as a combo of (1-year own damage and 3-years third party). The previously available combo of (3-year own damage and 3-years third party) was scrapped in 2018. Kindly visit IRDAI website for confirming the details.
Let’s understand both components (Comprehensive and third party) and their respective benefits.
Comprehensive Vehicle Insurance
Comprehensive coverage gives your car all-rounded protection with extensive inclusions from a barrage of risks, encompassing damages or loss arising due to natural calamities, theft, accidents, fires, etc. Not just that, it also gives you the added benefit of cover against third party liabilities.
Long-Term Benefits of Comprehensive Vehicle Insurance:
Covers your vehicle’s own damage:
The vital benefit of having comprehensive car insurance is that it protects your car from any unfortunate damages and losses due to accidents, collisions, fires, etc. This way, you don’t only save on unforeseen expenses but, also ensure your car will be repaired without any major financial setback, even in the case of a mishap.*
Protects from third-party liabilities:
One of the main reasons people get any type of car insurance is to comply with the law and, protect themselves from losses in case of any third-party damage. Comprehensive car insurance by default protects you from losses in case you damage a third-party person or property .*
Add-ons:
Most people offer comprehensive car insurance because it is customizable as per their requirements, by choosing add-ons to extend coverage. Your car insurance can be equipped with features such as zero depreciation that can help compensate for depreciated cost of parts over time. There are several other add-ons like engine protector, consumables cover to broaden the scope of your car insurance policy’s coverage.*
No claim bonus (NCB):
Car insurance policies offer NCB benefits that are incremented each year and provide considerable savings in the long-run. No Claim Bonus helps a policyholder to earn concessions on their car insurance premium for every claim-free year. NCB starts at 20% for the first year and goes all the way up to 50% for five consecutive claim-free years. Please visit the official website of IRDAI for further details.
*Standard T&C Apply
Third-Party Car Insurance:
Third-party car insurance is the most basic, and legal form of car insurance policy you will need. As the name suggests, this will only protect you from damages and losses caused to a third-party and won’t cover for your own damages.
Long-Term Benefits of Third-Party Car Insurance:
You can drive legally on Indian roads:
As per the Motor Vehicles Act, every car needs to at least have a third-party car insurance to drive legally on Indian roads. With a 3-year liability cover, you are spared from the hassle of annual renewals.
Avoid penalties:
Since at least having a third-party car insurance is mandatory by law, not having one can lead you to pay hefty penalty fines. Therefore, having a third-party car insurance can protect your pocket from indiscretionary spending on traffic fines.
Financial support in case of personal accidents:
Personal Accident or PA cover is a compulsory addition to your car or two wheeler insurance policy if you don’t already own one. The PA cover offers up to INR 15 lakhs for compensation of injuries, permanent disability or death in case of an unfortunate accident.
Choosing the right company:
Long-term benefits certainly highlight the importance and advantages of a vehicle insurance policy. Although many insurance companies provide these advantages, Bajaj Allianz General Insurance is among the top vehicle insurance companies that ensure you gain continual benefits along your policy’s life cycle. It allows for a hassle-free way to acquire motor insurance online and even via their app, with minimal effort. You can buy a policy within minutes to get coverage against natural and man-made calamities like earthquakes, floods, theft accidents, and much more. The Motor OTS feature facilitated with their mobile app enables settling claims up to INR 30,000 in 20 minutes! These features clubbed with a robust vehicle insurance policy make Bajaj Allianz General Insurance a viable option for anyone looking to secure their car or two wheeler. *Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
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