The Economic Times:
Monsoon in the past few years has been anything but normal. Often rapid downpours flood streets and damage cars. If you own a car, you must be having a third party insurance cover. Consider shifting to a comprehensive cover which covers, amongst others, damages made to the car from floods.
Which one to pick?
There are two types of motor insurance policies available in the market. The first one, commonly known as third party insurance, covers the policyholder against third party liabilities. For example, if you have caused damage to another car or the driver/passengers of that car, the policy will pay for the repair of the other vehicle, and will pay for any medical claims or injuries suffered by them. This policy, however, does not cover your car’s repair charges. For cars, the ‘Act Only Policy’ covers third party property damages only up to Rs 6,000.
The second type policy is known as the comprehensive car insurance cover which covers third-party damages and injuries, theft of your vehicle or fire, and any damage to your own vehicle. In addition to the coverage under liability only, this policy covers loss or damage to the insured vehicle and its accessories due to fire, explosion, self-ignition or lightning. It also covers burglary, riot and strike, malicious act, terrorist act, earthquake, (fire and shock) damage, flood, typhoon, hurricane, storm, tempest, inundation, cyclone and hailstorm, transit by road, inland waterway, lift, elevator or air.
Going for a comprehensive insurance policy is advisable since the frequency of accidents is high. According to industry estimates, one in every three cars, which have been insured, comes back for claims. On an average, the premium for taking that extra cover could be 3.3% of the market value of the car, as per an industry source. Among the top insurers, ICICI Lombard charges the lowest annual premium for a comprehensive cover of a Rs 2 lakh car of Maruti 800. The rates may differ with the car.
Carry on reading: Renewal problems.
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[…] Car Insurance: Which One Is Meant For You? The Economic Times: Monsoon in the past few years has been anything but normal. Often rapid downpours flood streets and damage cars. If you own a car, you must be having a third party insurance cover. … […]
[…] Car Insurance: Which One Is Meant For You? The second type policy is known as the comprehensive car insurance cover which covers third-party damages and injuries, theft of your vehicle or fire, and any damage to your own vehicle. In addition to the coverage under liability only, … […]
[…] Car Insurance: Which One Is Meant For You? Often rapid downpours flood streets and damage cars. If you own a car, you must be having a third party insurance cover. Consider shifting to a comprehensive cover which covers, amongst others, damages made to the car from floods. … […]