Private Car Insurance
The first mandatory thing after purchasing a car is taking insurance policy. It is a financial safeguard for large variety of situations. Car insurance policy covers loss or damage to your car from the natural disasters like earthquake, lightning, floods and so on as well as from the man-made calamities like theft, fire, terrorists attack, accident, riots, etc. The premium amount for the car insurance policy depends on the value of the car, its make, the manufacturing year of the car and the state where your car is registered. There are further two types of car insurance policy: Comprehensive Car Insurance policy and Third-Party Liability Insurance policy.
Comprehensive Car Insurance
: This type of policy gives full coverage to the policy holder which includes loss or damage to the insured car, personal accident and third-party liability in case of any accident. Comprehensive insurance policy gives end to end coverage to the policy holder which includes any loss or damage to the insured car and an unknow stranger (third-party) and personal accident. It protects you from any kind of financial or legal crises.
: According to the Motor Insurance Act, third party motor insurance is compulsory in India. This policy only covers the loss or damage to the third party, who has been injured by an insured car, in an accident. This policy does not include theft and damage to the insured car.
Add-On Covers in Motor Insurance
Other than these three types of motor insurance policies, there is a list of add on plans available in the market which enhances your coverage for better protection. You can choose add-on covers according to your need, in addition to your standard motor insurance policy.
- Zero Depreciation Cover - One of the most popular add-on cover in motor insurance is zero dep cover. Opting for this cover means that the policyholder is eligible to receive full claim amount on the value of replaced parts.
- NCB Protection Cover - The NCB or No Claim Bonus is a kind of reward given to a policyholder in case of not making any claims during the policy term.
- Roadside Assistance Cover - In case of emergencies like battery issues, empty fuel, flat tyres, and so on, this add-on cover provides you an assistance even in the remote locations.
- Key Replacement Cover - This cover offers reimbursement for the cost of a substitute key, in case of a lost ignition key
- Engine and Electronic Circuit Cover - In case of a damage to the insured vehicle’s engine or electronics circuits, this insurance cover takes care of your expenses.