What is Comprehensive Insurance?

Signboards like "Speed thrills but kills" and "Do not drink and drive" are placed on highways to remind drivers to follow traffic rules and stay safe. Additionally, traffic police across the country work to ensure road safety. However, despite these preventive measures, accidents and vehicle damage can still occur for various reasons.

Motor insurance safeguards vehicle owners against accidents, theft, or damage.

Depending on individual needs, one can choose from different types of policies. In India, two primary types of auto insurance are available: third-party insurance and comprehensive insurance. While third-party car insurance is legally mandatory and covers damages to others involved in an accident, it does not protect the policyholder's vehicle or injuries.

That is where a Comprehensive Insurance Policy becomes crucial.

Comprehensive Car Insurance, also known as a package policy, provides broader coverage by including both own damage and third-party liability. It safeguards you from legal and financial liabilities in case of an accident while offering personal coverage for the vehicle owner. This policy protects you and your car against loss or damage caused by accidents, fire, theft, or natural calamities.

Many car owners prefer comprehensive coverage because it offers extensive protection and can be customised with various add-ons. However, due to its broader coverage, it tends to be more expensive than mandatory third-party insurance. If you purchase a vehicle through financing or a loan, a Comprehensive Insurance policy is often required to protect the finance company against potential loss or damage.

In a third-party insurance policy, only the damages caused by the insured car to another person or their property are covered. In contrast, a comprehensive policy includes third-party coverage and protects the vehicle owner/policyholder and their vehicle. This includes personal accident cover and protection against damages from theft, vandalism, natural disasters, and more.

If a car owner has only third-party insurance and is involved in an accident, neither the policyholder nor their vehicle is covered. However, with comprehensive auto insurance, the policyholder, their vehicle, and any third party involved (or their property) are all protected.

• It covers damage caused to your vehicle due to fire, explosions, or self-ignition incidents. Damage from lightning strikes is also included under the OD section.
• The OD part covers the repair or replacement if your vehicle is stolen or damaged during a burglary or housebreaking.
• Damages caused by rioting or strikes are covered.
• Any damage to your vehicle will be covered in case of an earthquake.
• Natural calamities like floods, storms, or hailstorms that damage your vehicle are included in the coverage under this policy.
• Any damage caused to the vehicle by accidental external factors, such as collisions or unforeseen incidents, is covered.
• If someone intentionally damages your vehicle, the OD part of your comprehensive policy will cover the costs of repairs.
• The policy provides coverage if your vehicle is damaged due to acts of terrorism, ensuring financial protection in such events.
• If your vehicle is damaged while being transported via rail, road, water, lift, elevator, or air, the OD section covers the damage.

• If the driver doesn't hold a valid driving licence at the time of the accident, the insurance will not cover the damages.
• Any damage occurring while the driver is under the influence of alcohol or drugs is not covered under the policy.
• Accidents occurring outside the geographical area defined in the policy will not be covered under the OD section.
• If the vehicle is used for illegal activities, the insurance provider will not offer any coverage for damages.
• Breakdowns due to mechanical or electrical failure are excluded from coverage and are the owner's responsibility.

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Looking to apply for Comprehensive Car Insurance? Apply here now!

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