For every person who buys their vehicle in India, it is compulsory to buy auto insurance ie Motor Insurance Policy.
Types of Car Insurance: After the new rules of Insurance Regulatory and Development Authority of India (IRDAI) came into force from August 1, the obligation to take third party insurance + on-damage insurance in the package form for your vehicle has expired. Now, if the owner wants to buy a new vehicle, he can take third party insurance and own damage cover separately. Talking about the car, buying this car will become a bit cheaper with the coming of this new rule. But do you know what is Third Party Insurance and On Damage Insurance?
In fact, for every person who buys their vehicle in India, it is compulsory to buy a vehicle insurance or motor insurance policy. This applies in case of three cars, two wheelers or commercial vehicles. Driving a motor vehicle in a public place without insurance is a punishable offense according to the Motor Vehicle Act 1988. Talking about the car, there are 4 types of insurance policies, including third party insurance and own damage insurance. Let’s know about them in detail….
Third party insurance
Third party insurance is legally mandatory with the car. Under this, compensation is given to any person or other person walking on the road with your vehicle or to any property. Due to such an incident, the legal liabilities arising on you are settled with this policy. Someone from your vehicle compensation is received from this insurance plan in case of bodily harm or death. But in this insurance, the vehicle owner or the driver has no responsibility to compensate for any loss. According to the rules of IRDA, it is mandatory to take third party cover for 3 years on taking a car and 5 years on taking a toweler.
The policy which is bought only to compensate for the loss to the vehicle is called Own Damage Policy. In this, the insurance company gives compensation for the damage done to the car. According to IRDAI, under the Damage Section on these conditions, the loss is covered…
Comprehensive policy or package policy
When Own Damage Policy is also included in the same package along with third party insurance, it is called Comprehensive Policy. Along with the loss of other person and vehicle, such a policy also compensates for the damage done to your vehicle by a single policy. IRDA has abolished the imperative of taking this long term package policy.
Now it will be optional to take third party insurance and own damage insurance in the package for vehicle owners. From 1 August, it will be necessary to take a third party cover for 3 years for taking a new four wheeler and 5 years for taking a toweler. At the same time, there will be two options for On Damage Cover. First, the customer can take one year on-one damage cover in bundle with third party insurance and the second can take two different policies for third party and on damage.
Personal accident insurance
Personal accident insurance comes in handy for physical damage caused to a driver in a car accident. Taking it is also mandatory like third party insurance. Apart from 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 / her family gets compensation.
In India, it is mandatory for a vehicle owner / driver with motor insurance and a personal accident insurance of minimum 15 lakh for the person sitting together. IRDAI has separated personal accident cover from motor insurance policy from 1 January 2019. That is, if the vehicle owner wants to buy a car, they can take both the motor insurance policy + personal accident cover. Or, as a general personal accident product, you can take personal accident cover separately from any other insurer. In such a situation, if someone has already taken a personal accident cover of 15 lakhs or more, then there is no need to take compulsory personal cover under motor insurance.
They can add on
If the customer wants, then you can increase the benefits by adding some additional cover in motor insurance. like…