Understanding Car Insurance
Car insurance is essential for safeguarding yourself from financial loss in the event of accidents, theft, or damage to your vehicle. In India, car insurance policies come with a range of coverage options, including mandatory third-party liability insurance and comprehensive plans that offer extensive protection.
Our guide will help you understand different types of insurance covers, statutory requirements, and optional add-ons that can enhance your policy.
Basic Car Insurance Covers
Third-Party Liability Insurance
Coverage: Compulsory by law, it covers legal liability for damages caused to a third party, including bodily injury, death, and property damage.
Exclusions: Does not cover damage to the insured vehicle or injuries to the policyholder.
Comprehensive Car Insurance
Coverage: Offers coverage for both third-party liability and own damage to the vehicle, including natural calamities, theft, and vandalism.
Exclusions: Usually excludes damages due to negligence or unauthorized use.
Statutory Car Insurance Covers
Personal Accident Cover
Coverage: Provides compensation for injuries sustained by the driver or passengers in case of an accident. This cover typically includes accidental death or permanent disability.
Exclusions: Generally does not cover injuries sustained while driving under the influence of alcohol or drugs.
Third-Party Property Damage
Coverage: Compensates for damages caused to a third party’s property in the event of an accident.
Exclusions: Excludes damage to the insured vehicle or any property owned by the policyholder.
Add-On Covers
Zero Depreciation Cover
Coverage: Ensures full claim amount without depreciation deduction on replaced parts (plastics, rubber, glass, etc.).
Exclusions: Usually available for cars up to a certain age and might have a limit on the number of claims per year.
Engine Protection Cover
Coverage: Covers repair or replacement costs for engine damages due to water ingress, oil leakage, etc.
Exclusions: Typically does not cover engine damage due to regular wear and tear.
Return to Invoice Cover
Coverage: In case of total loss or theft, this cover ensures reimbursement of the vehicle’s invoice value, including road tax and registration costs.
Exclusions: Generally applies to new cars or cars up to a certain age.
Types of Health Insurance Products
Indian insurers offer a wide range of health insurance products tailored to different needs. Here are some of the key types:
Individual Health Insurance
Provides coverage for a single individual. Each family member must have a separate policy.
Family Floater Health Insurance
Covers the entire family under a single sum insured. The cover can be used by any or all members.
Senior Citizen Health Insurance
Specifically designed for individuals above 60 years of age, covering age-related health issues.
Critical Illness Insurance
Provides a lump sum on diagnosis of specific critical illnesses, irrespective of the actual medical costs.
Group Health Insurance
Offered by employers to their employees, providing health cover to all members of the group.
Maternity Health Insurance
Covers expenses related to pregnancy and childbirth, including newborn baby cover.
Top-up and Super Top-up Health Insurance
Provides additional coverage over an existing health policy, useful when the sum insured is exhausted.
Disease-specific Insurance Plans
Covers specific diseases such as cancer, diabetes, or cardiac conditions.
Personal Accident Insurance
Provides coverage for accidental death, disability, and sometimes accidental hospitalization expenses.
Overseas Health Insurance
Covers medical expenses incurred during travel abroad.