Car insurance is a legal agreement between you, the insured, and the insurance company or the insurer, wherein the insurer is liable to cover any financial losses that occur because of an accident or theft of the car or damages to a third party because of the car. The extent of coverage, however, depends on the terms and conditions of the car insurance policy document.
Instance 1: You are driving down the highway in the rain when you skid on a bad patch of road and hit an electricity pole. Your insurer would pay for any physical damage your car sustains in this incident as it is a road accident in which you collided with an object. Remember that the collision need not just be with other vehicles.
Instance 2: You have parked your vehicle at your regular parking spot, which is reasonably secure. Due to an earthquake a boulder hits your car and it sustains physical damage. Most comprehensive car insurance would pay this damage as it is caused by a natural calamity against which car insurance coverage is provided according to the policy terms and conditions.
It is important to remember that in both these cases any deductible would have to be paid out of your pocket before the insurer pays for the rest of the covered expenses. The deductible to be paid out of pocket includes both the compulsory deductible mandated by IRDAI and any voluntary deductible opted by you.
Own Damage (OD) Cover
Third Party Liability (3PL) Cover
Zero Depreciation Cover :
Zero depreciation cover is also known as bumper to bumper or nil depreciation cover. With zero depreciation coverage, the insured does not have to pay the depreciation value of the damaged or replaced parts and the policyholder can claim
No Claim Bonus Cover :
The No-claim bonus cover makes you eligible for a bonus from your insurer in case no claims were made on the policy in the past year.
Emergency Assistance Cover :
The Emergency Assistance Cover allows you to drive hassle-free in any part of India. In case of an accident or a breakdown, you get immediate site repair or towing assistance wherever you are.
Key Replacement Cover :
The key replacement cover allows you to claim a free replacement of your car keys in case you misplace or lose the key. The replacement is done free of charge, where the insurance company pays for the replacement charges.
Return To Invoice :
In case there is a difference between your car’s insured value and purchase value, the return to invoice cover helps you cover the gap during your claim in case of a loss or theft.
Engine And Gearbox Protection Cover :
The engine and gearbox cover helps cover costs of repairs on any parts of the engine and gearbox, like nuts, bolts, screws, etc., and the corresponding labor charges for repair and replacement as well.
Consumables Cover :
The consumables cover helps cover costs of consumables like engine oil, nuts, bolts, gearbox oil, grease, washers, etc., during repairs or servicing.
Passengers Cover :
The passengers’ cover in your car insurance policy helps secure you financially from any damages or injury to other passengers in the car during the accident.
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