Any vehicle that you buy, must be covered by at least third party car insurance compulsorily. Having a car insurance in India provides a car owner with many benefits. A third car insurance policy will cover third-party liabilities whereas comprehensive insurance will cover third party as well as your vehicle and yourself. There is however a big confusion regarding car insurance. People want to know what will be the case if your car is damaged in an accident when you are not driving, someone else is? In this case, what happens to your motor insurance coverage?
· Car Insurance Policies
While buying a car insurance policy, people can choose between a comprehensive or third party car insurance policy. A comprehensive car insurance policy will give you overall protection under several scenarios such as accidents, natural disasters, theft, as well as personal accidents. Whereas, loses that arise due to damages or injuries that are caused by insured to the third party’s property or a third party, all get covered under the third party vehicle insurance policy. Therefore, third party cover is very important and a basic requirement under a vehicle’s insurance policy as per the Indian Motor Vehicles Act.
· Who is Covered When Driving Your Car?
It might be a little confusing to understand whether who is covered by your motor insurance for driving your vehicle. A car insurance policy will vary from insurer to insurer, but according to a general rule of thumb, all drivers who drive your vehicle are covered by your insurer. You also have an option to exclude certain people in the ‘excluded drivers’ list in your car insurance. These people won’t be covered when driving your car. Hence, you are allowed to lend your car to your friends and family members. You can even give those who don’t live with you as ‘permissive use’ which often applies in such cases. ‘Permissive use’ means if you hand over your car to someone else for driving, they will be covered as well under your car insurance policy.
A minimum amount of insurance claim is required in all the states in India. Car insurance can be really helpful in managing the loss of a huge sum if any damage is caused to your car, in the following manner:
1. If the accident results in death, benefits are provided to the survivors.
2. As a result of an accident, it will cover lawsuits that include legal fees that are brought against you due to an accident.
3. The bills of vehicle repairs will be covered, if any damage is caused in an accident.
4. If the damage is caused due to reasons apart from accident i.e. theft, fire, etc. will also be covered
Car Insurance has been made mandatory by law and driving without it is illegal in India. Choose from comprehensive, third party or commercial vehicle insurance to cover your car.