Types of Car Insurance in India

Third Party Car Insurance

This type of policy compensates the damages to a third party and their property. It’s best for those planning to insure their car just because it's mandatory to do so. Here are the current premium rates:

The quote that you get for TP cover is the sum of its components, which include:

The basic third-party premium

Premium for Personal Accident Owner Driver Cover – Rs. 100

Goods and Service tax – 18%

The basic premium for third-party depends on the cubic capacity. These rates are revised each year by IRDA. From 1st April, 2017, the third-party insurance rates are:

Comprehensive Car Insurance

This type of policy covers damages to the third party as well as your car. It is best for those wanting to cover for losses for accidents and incidents such as theft and natural disasters. The quote that you get for comprehensive coverage is the sum of its components, which include:

Third-Party premium

Own Damage premium

Premium for Personal Accident Owner Driver Cover – Rs. 100

Charges for additional coverage (add-ons)

Goods & Services Tax – 18%

Note: The term ‘IDV’ refers to the maximum claim your insurer will pay if your vehicle is damaged beyond repair or Suppose the insured declared value(IDV) of your car is Rs. 8 lakh now while the purchase when you buy the policy. It means the insurer will disburse a maximum amount of Rs. 8 lakhs.

Additional Covers in Car Insurance

ZERO DEPRECIATION COVER This add-on is for the repair or replacement expenses of plastic, rubber, glass, and other materials that standard policies would otherwise not cover. NCB PROTECTION This add-on provides a discounted premium on your no-claim bonus year-on-year, even after claiming during the policy period. ENGINE PROTECTION This add-on is for the times when the monsoons are at their destructive worst, and leave your car's engine vulnerable to flooding. INVOICE COVER This add-on helps you recover as much as the car's on-road price or Insured Declared Value in total loss (such as theft or a terrible accident).

Inclusions and Exclusions in Car Insurance

INCLUSIONS

Own Car Damage for all damages that occur to your car due to accidents

Personal Accident Cover, in case of death or permanent disability in an accident, the insurer compensates you

Financial protection from Natural Calamities such as floods, earthquakes, etc.

In case of Theft, your insurer will pay an amount equal to your IDV

Coverage of damages caused by Man-made disasters, including riots, strikes, fire, and terrorism

EXCLUSIONS

Damages and injuries caused while driving under the influence of alcohol

Loss and damage caused due to war and nuclear risk

Accidental Damages caused while you were using your car for illegal activities

Losses incurred while driving without a valid license