A Comprehensive Motor Insurance policy Covers your Vehicle against any loss occurred due to an Accident. It not only protects you against the Mandatory - Third Party Liability (Damage to Person or Property) but also against loss occurred to the vehicle due to perils like - Flood, Storm, Landslide & Rockslide, Earthquake, theft, etc.
A Comprehensive Motor Insurance Policy is divided into 3 Sections:
Section 1 - Own Damage
An Own Damage Cover is an extensive policy which offers the insured against loss or damage to the vehicle insured along with a third party cover for the below perils:-
The following perils are covered under a comprehensive policy:
- Accidental damages caused by external means
- Fire, Explosion, Implosions, Self-ignition, Lightning
- Natural Calamities: Flood, typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone, Hailstorm, Frost.
- Whilst in Transit by road, rail, inland waterway, air, lift or elevator.
- Act of Terrorism
- Riot and strike, Malicious Damage
- Burglary, Theft, Housebreaking
- Earthquakes (Fire & Shock damage)
- Landslide & Rockslide
- In this section, additional protection on payment of extra premium is available against:
a. Extra fittings like tape recorders, air-conditioners, fans etc.
b. Personal accident benefits of passengers.
c. Wider Legal Liability under Common Law for employees engaged in the operation of vehicles such as paid driver and cleaner as also six
Section 2: Third Party Liability
Third Party Liability covers all the damages and injuries caused by your vehicle with you at the deficiency. It pays for the loss and damage caused to a life or property and thus spares you from the huge compensation which you would have been obligated to pay otherwise. In India, this cover is legally mandatory under the Motor Vehicles Act.
Benefits & Features of Third Party Insurance Policy for your Vehicles:
- Death or Bodily Injury to a Third Party
- Damage to a Third party Property
- Accidental Death of the Vehicles Owner or Driver
- Permanent Total Disability suffered by the Vehicle Owner or Driver.
a. Third Party Injury & Property Damage: A third Party liability cover is as per the requirements of the Motor Vehicle Act, 1988. The Insurer will indemnify the insurance against all claims which he may become legally liable to pay to the third Parties for Injury, Death or Property Damage. The insurer shall be reimbursed the legal cost and expenses incurred by such Third parties and recoverable from the insured. In addition, the expenses related to defence cost incurred by the insured are also reimbursed.
- Liability for death or injury to third parties- this means that you are insured against death or injury (caused by your vehicle) to pedestrians, an occupant of other vehicles, and outsiders other than passengers, for unlimited amounts. Passengers of private vehicles and pillion riders are also deemed covered.
- Liability to employees connected with operation of the vehicle- this means you are insured against death or injury (caused by your vehicle) to the vehicle's drivers, cleaners, conductors,
cooliesetc. , employees used in the operation of the vehicle.
- Liability to passengers carried in the vehicle for hire or reward - this means that as an owner of a taxi, bus or auto - rickshaw, you are insured against death or injury (caused by your vehicle) to the passengers
Section 3: Personal Accident Cover for Owner/ Driver
The company will pay a compensation for bodily injury/ death as mentioned below:-
- Personal Accident Cover for Driver/owner which is compulsory in case of cars owned by individuals and where the owner is duly licensed to drive the vehicle.
- Personal Accident Cover for occupants
- Loss of Accessories.
- Cover for paid driver.
- Personal Accident Owner Driver Compulsory – Rs. 2Lacs
- Passenger Optional Min: Rs. 50000 Max.
- Death-------------------------------------- 100% CSI
- Loss of 2 limbs --------------------------100% CSI
- Loss of 1 limb---------------------------- 50% CSI
- Permanent total Disablement ------ 100% CSI
Exclusions Under a Motor Insurance Policy
The Following contingencies will not be covered under the Motor Insurance Policy:
- Wear and tear and depreciation
- Not having a Valid Driving License
- Accident taking place beyond the Geographical Limits. However, the limit can be extended to Bangladesh, Bhutan, Nepal, Pakistan, Sri Lanka & Maldives on payment of extra premium.
- Mechanical or electrical breakdowns, failures or breakages
- Theft of accessories if the vehicle itself is not stolen and
- Consequential loss
- Contractual Liability
- Damage to tyres and Tubes unless the vehicle is damaged at the same time when the liability of the company is limited to 50% of the Cost of Replacement
- Any accidental loss or damage suffered whilst the insured or any person driving with the knowledge and consent of the insured is under the influence of Intoxicating liquor or drugs
- Compulsory Deductibles under a Private Car Policy (At the time of Claim): A Compulsory deductibles amount is a fixed amount which is charged to the customer whenever a Claim Arises. As per IRDA, the amount charged for a Private Car & 2 Wheeler is as below:-
Up to 1500 cc ------- Rs. 1,000/-
Above 1500 cc------- Rs. 2,000/-
Two Wheeler -------- Rs. 100/-
Subject to deduction for Depreciation at the rates mentioned below in respect of the parts replaced:
- For All Rubber/ Nylon/ Plastic Parts/ Tyres and tubes, Batteries and Air Bags - 50% Depreciation
- For Fibre Glass Components - 30% Depreciation
- For all Parts made of Glass - NIL Depreciation
Rate of Depreciation for all other parts including Wooden Parts will be as per the age of the Vehicle:
|Age of the Motor Vehicle||% of the Depreciation|
|Up to 6 months||NIL|
|Between 6months & 1yr||5%|
|Between 1yr & 2yrs||10%|
|Between 2yrs & 3yrs||15%|
|Between 3yrs & 4yrs||25%|
|Between 4yrs & 5yrs||35%|
|Between 5yrs & 10yrs||40%|
In the event, if the vehicle is disabled as a result of damage covered under the policy, the insurer will bear the cost of protecting the vehicle and removing it the nearest garage. A reasonable cost is paid to the Insured which is limited to a maximum of Rs. 1500 (Cars).
Ordinary repairs arising out of damage covered under the policy can be carried out only after they are authorised by the Insurer. However, the insured is allowed to carry out the repairs without authorization from the insurer, provided the below clause shall apply:
- The estimated cost of such repair does not exceed Rs. 500/- (Rs. 150 for motor Cycles)
- The insurer is furnished forthwith with a detailed estimate of the cost.
- The Insured gives the insurers every assistance to ensure that such repair is necessary and the charge is reasonable.
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