Hello friends, in today’s new article we are going to talk about car insurance, what is car insurance and what are the types of car insurance, so if you want to know about all these information in full detail, then please you can visit our website. Read this article till the end.
What is car insurance
Car insurance is a type of insurance that covers the loss of a third party due to important events related to the car such as accident, theft or any kind of accident and to protect oneself from financial loss due to such unforeseen incidents. a protective shield,
The person insuring the car, takes insurance of that value from the insurance company on the basis of the insured declared value of the car, and in return gives it to the insurance company, on the basis of the declared value for the purpose of insuring the car, for the purpose of insurance. premium fee has to be paid,
Types of car insurance
Third party insurance
It is legally mandatory to have third party insurance with the car. Under this, compensation is given for the damage caused by your vehicle to any person or other person walking on the road or to any property. The legal liabilities arising on you due to such an event are settled through this policy. In case of bodily harm or death to any person from your vehicle, you get compensation from this insurance plan. But in this insurance there is no responsibility to compensate for any loss caused to the vehicle owner or the driver. As per the rules of IRDA, it is mandatory to take 3 years third party cover for buying a car and 5 years for buying a two wheeler.
Personal accident insurance
Personal accident insurance comes in handy for bodily damage caused to the driver in a car accident. Taking it is also mandatory like third party insurance. In this, other than the driver and the other person sitting in the front seat, other passengers can also be included. If the car owner dies in an accident or in the event of permanent disability, he / family members get compensation.
In India, it is mandatory for the vehicle owner/driver and the person sitting with motor insurance to take a personal accident insurance of minimum 15 lakhs. IRDAI has separated personal accident cover from motor insurance policy with effect from January 1, 2019. That is, the owner of the vehicle can take both the motor insurance policy + personal accident cover while buying the car. Or one can take personal accident cover separately from any other insurer as a general personal accident product. In such a situation, if someone has already taken personal accident cover of 15 lakhs or more, then there is no need to take compulsory personal cover under motor insurance.
The policy which is purchased only to compensate for the damage caused to the vehicle is called Own Damage Policy. In this, the insurance company gives compensation to compensate for the damage caused to the car. According to IRDAI, damage is covered under the own damage section in these situations…
- fire, explosion, self-ignition, lightning
- flood, storm, cyclone, tornado, thunderstorm, deluge, hailstorm, snowfall
- While traveling by rail/road, inland waterways, lift, elevator or air
- Burglary / Robbery / Theft
- riot and strike
- accident due to external factors
- malicious act
- terrorist act
Comprehensive policy or package policy
When Own Damage Policy is also taken by including third party insurance in a single package, then it is called Comprehensive Policy. With such a policy, damage to other person and vehicle as well as damage to your vehicle is also compensated by one policy. IRDA has done away with the requirement of taking this long term package policy.
Now it will be optional for the vehicle owner to take third party insurance and own damage insurance in the package. From August 1, it will be necessary to take third party cover for 3 years for new four wheeler and 5 years for two wheeler. There will be two options for own damage cover. First, the customer can take one year’s own damage cover bundled with third party insurance and second, two separate policies for third party and own damage.
Friends, we hope that now you have got all the information about car insurance and you must have known what is car insurance and what are the types of car insurance. So if you liked this article of ours, then please do tell in the comment box. ..Thank you