5 Types of Car Insurance Coverage Explained
- Author :
- TATA AIG Team
- Published on :
Car insurance coverage is an important concept to understand when you buy car insurance. You drive to work or take your family out on chores and fun drives or enjoy time out with friends. As a responsible car owner, you keep your vehicle in good condition, obey the road rules while on the road and practise good driver etiquette. So, you wish driving your car to be a worry-free experience. Despite your precautions, your car could meet with unexpected contingencies on the road, such as major or minor accidents, breakdowns, tyre bursts, natural/man-made disasters and so on.
The best solution to free you of financial worries in such situations is car insurance. Under all types of car insurance, subject to the specific terms and conditions of your policy, protection is offered for financial losses arising from any unfortunate events involving your car.
When your car meets with a mishap, you should be focused on recovering from the trauma and not worry about the financial implications. To get over any such episode with little anxiety, you should always have adequate car insurance and keep it in force.
What are the Five Types of Car Insurance Coverage in India?
Insurance coverage refers to the kinds of protection available. Along with basic coverage under the policy, you can choose a number of add-ons to enhance the protection under the policies. Let us first show you the five types of car insurance coverage available in India:
1. Third-Party Liability Only Cover
Under this type of car insurance coverage, you will get the following benefits:
- Cost of repairs/replacement of the damaged vehicle of third parties
- Cost of hospitalization and treatment of third parties
- Liabilities arising out of death of third parties
According to the Motor Vehicles Act, third-party car insurance coverage is a must to drive on the roads. The sum assured should be according to the driving conditions and sufficiently high to avoid out-of-pocket payments from your side.
2. Collision Damage or Own Damage (OD) Cover
When you opt for collision damage car insurance coverage, the cost of repairs to your vehicle that has been damaged is reimbursed. To determine the cost of collision coverage, its age and Insured Declared Value are taken into account to arrive at the premium. The IDV is based on the market value of the vehicle.
When a claim is lodged under collision coverage policy, the maximum amount payable under the policy is given by the IDV less accumulated depreciation. If you have purchased your vehicle on a loan, you should hold collision cover.
3. Personal Accident Cover:
When you wish to protect yourself, i.e., the owner-driver of the car, by opting for reimbursement of medical expenses after an accident, you are using personal accident car insurance coverage.
4. Zero Depreciation Insurance:
This coverage is generally offered as an add-on to car insurance policies in India. Suppose your vehicle is damaged and you need to replace the parts. The insurer will consider the depreciated value of the parts for claim settlement. A Zero Depreciation Cover will help you get the complete claim amount without accounting for any depreciation in the costs.
5. Comprehensive Car Insurance:
This type of coverage gives the highest level of protection as it includes liability for third parties, damage to own vehicle, personal accident cover, and all non-collision damage such as storms, floods, fire and theft. You can further enhance a comprehensive car insurance policy with a choice of add-ons.
Types of Car Insurance Policies Offered by TATA AIG
At Tata AIG, your need for protection and convenience are our topmost priorities. Our car insurance policies offer different features that can be customized to your specific requirements. Tata AIG offers the following three types of policies.
Comprehensive car insurance policy
Comprehensive car insurance is the most extensive policy type and covers third-party liabilities as well as own damage costs, loss due to theft, natural disasters etc. You will receive the IDV or the total market value in case your vehicle is stolen or damaged beyond repair.
Standalone own-damage car insurance policy
This policy takes care of own-damage, that is, loss to the policyholder’s car. This does not offer third-party car insurance coverage. This type of policy is effective from September 2018.
Standalone third-party car insurance policy
This is the basic policy and is mandatory for driving on public roads. It includes damage to third-party vehicles, injuries to third parties, medical costs and death of third parties.
Add-on Riders Under TATA AIG Comprehensive Car Insurance Policy
We offer 12 add-on benefits that can enhance the coverage and offer more protection under the policies.
1.No Claim Bonus Protection: In general, if you don’t lodge a claim under your policy, you become eligible for NCB deduction at the time of renewal. With this add-on cover, you can lodge a predefined number of claims while retaining the NCB discount.
2.Zero Depreciation Cover: With the Zero depreciation add-on, you will be reimbursed the complete sum assured without deduction for depreciation of parts.
3.Return to Invoice Cover: When your claim for total damage or loss due to theft is settled, the depreciation might
4.Roadside Assistance Cover: You can get round-the-clock breakdown assistance for towing or emergency mechanic services
5.Repair of Glass, Fibre and Plastic Parts: You will be reimbursed for repair costs of glass, fibre and plastic parts. The claim under this car insurance add-on does not affect your NCB. However, only one claim in a policy year is allowed.
6.Daily Allowance Cover: You will get reimbursement for the cost of other modes of transport until your vehicle is repaired ready for the road again.
7.Emergency Transport and Hotel Expenses Cover: When you are stranded after an accident, you can get expenses of overnight accommodation and travel expenses to reach the city closest to your destination with this add on available with a comprehensive car insurance policy
8.Key Replacement Cover: With this add-on, you can get the keys replaced if you have lost them or when your stolen car is recovered.
9.Engine Secure: If you live in an area prone to flooding or water-logging, your engine should be protected. If you choose this add-on to your comprehensive car insurance policy, you can repair the engine without incurring additional expenses from your pocket.
10.Tyre Secure: When you repair a damaged tyre or tube, this add-on will reimburse the costs.
11.Consumables expenses: When you replace air conditioner gas, gearbox oil, oil filter, and other consumables after an accident, this add-on will cover the amount spent.
12.Loss of Personal Belongings: This add-on with comprehensive car insurance coverage helps to cover the loss of personal belongings such as videotapes, CDs, clothes etc. but excludes credit/debit cards, jewellery, money, watches etc.
You should know the different types of coverage that are available so that you can choose an appropriate policy with useful add-on riders. Check out Tata AIG car insurance for an all-round protection, easy claim settlement and 24x7 customer support. You can use our online car insurance calculator to determine the total premium outflow for your choice of policy.
For more information, get in touch with us today!
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.