Nowadays, buying car is an expensive investment for an individual. But, accident can ruin this investment into a huge loss. Therefore, it is necessary to buy car insurance online from reliable car insurance companies in India.
In case insured person hit someone, then he will be responsible for damages he caused. In this scenario, this insurance type will pay for car repairs, car rental expenses and medical bills and so on. Car insurance cost is based on the type of cover, so it varies from plan to plan.
This type of insurance is available to cover all types of personal and commercial vehicles. The main reason behind buying this policy is to offer protection against physical damage occurring because of traffic collisions as well as against liability which could also generate there-from.
Car insurance in India pays for the loss or damage caused to the vehicle or its parts because of man-made and natural calamities. It gives accident coverage for individual vehicle owner while driving and for passengers along with third party legal liability.
In India, third party cover is a statutory need. The vehicle owner is legally liable for any damage or injury to third party life or property resulting due to vehicle in a public area.
If person takes only liability policy, then vehicle damage will not be insured. Buying a package policy including liability cover and O.D. cover would provide a wider coverage for vehicle and vehicle owner. Car insurance agencies will indemnify the policyholder against loss or damage because of below mentioned perils generally covered under OD section:
Fire, explosion, self-ignition or lightening, burglary, housebreaking or theft, riot and strike, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, accident external means, malicious act, terrorist activity, while in transit by road, rail, inland, waterway, lift, elevator or air, landslide or rockslide etc.
Sum Insured Basics
Sum insured reflects the vehicle value calculated based on the insured’s declared value. This value depends on the present value of manufacturer and depreciation based on the vehicle age. Personal accident cover is available to insure auto owner and driver both. It can be extended to cover passengers of covered vehicle.