While opting for car insurance in India, people might come
across a problem of deciding among the best options. With a constant elevation
in the Indian automotive industry, there have been a considerable number of
schemes and policies launched by the concerned insurance unions. A car
insurance policy covers the expenses of the damages or the theft in accordance
with the type of scheme opted by an individual. As per the rules and
regulations of the Indian government, car insurance policy is mandatory for
every model, be it new or used. Such a policy at least ensures to cover the
minimum damage, which can be caused to one's own car or other vehicles in case
of
collision. In general, there are two types of car insurance in India that
can be summarised as follows:
1.
Liability Only
Policy or Third-party Insurance: This type of car insurance policy covers the
damages occurred to a third-party in any adverse condition. It is mandatory as
per the Indian law for every vehicle to have a third-party insurance policy so
as to at least cover the expenses of injuries caused by one's car to another
person or vehicle. In this policy, the premium is calculated on the basis of
the engine capacity of the car an individual drives. Since there are only
third-party damage cover in the policy, therefore, its premium amounts to much
less as against the full coverage policy.
2.
Package Policy or
Comprehensive Insurance: This type of car
insurance policy completely differentiates from the third-party insurance,
and covers the damage expensed caused to others as well as the vehicle owner.
The damage covers and medical expenditure in case of an unexpected occurrence
are covered in this policy for both the parties.
3.
Furthermore, the
exclusivity of this policy is that it also covers the damages caused to one's
vehicle in case of a natural calamity. The premium in this type of insurance is
calculated according to the insured value of a person's automobile. Since, the
expenses covered are for both the parties, the premium of this type of policy
is generally high.
In case a person
opts for new models, he/she would like to opt for car finance as well as
insurance instantly so as to prevent the excess money being shed from their
pocket. New cars these days are available with lucrative insurance scheme but
people are always in a bid to reduce their premium. To do the same, they can
decide on the following aspects before choosing an insurance plan:
·
In case people
buying new cars decide to get them financed, then they should first
analyse their expenses to know if they are able to pay extra premium or a
minimum amount for the insurance.
·
·
Depending upon the
types of situation people want their insurance to cover, they can get the
policies customised as per their convenience. Most of the people tend to go for
all-coverage package, which includes medical expenses and the range of damages,
which can occur to both parties.
The all-coverage
package is beneficial but might also include unnecessary damages to new cars,
such as the features and accessories of a vehicle. In such cases, people might
have to deal with extra amount of premium getting from their pockets.
Comprehensive car
insurance in India might result in lower premiums after a while as any vehicle
depreciates after a certain period of time. The third-party policy, on the
other hand, will not be affected as the engine of new models as well as used
cars will always remain the same.
[Source: http://www.cartrade.com/blog/2014/car-finance/car-insurance-in-india-and-policy-types-644.html]
hey thanks for sharing this informative blog it seems very helpful, i was looking for same kind of content about car insurance
ReplyDeleteWhen you buy or renew your Car Insurance policy, do not quote an IDV that is lower than the market value of your car. If you do, you will get inadequate compensation for the loss or damage to your vehicle.
ReplyDelete