Car insurance: There are 4 types of insurance policy, this is how to cover the loss

For every person who buys their vehicle in India, it is compulsory to buy auto insurance ie Motor Insurance Policy.
Types of Car Insurance: After the new rules of the Insurance Regulatory and Development Authority of India (IRDAI) came into force on August 1, the obligation to take third-party insurance + On-Damage insurance in the package form for your vehicle has expired. Now, if the owner wants to buy a new vehicle, he can take third-party insurance and own damage cover separately. Talking about the car, buying the car will become a bit cheaper with the coming of this new rule. But do you know what is Third Party Insurance and On Damage Insurance?
In fact, for every person who buys their vehicle in India, it is compulsory to buy a vehicle insurance or motor insurance policy. This applies in the case of three cars, two-wheelers, or commercial vehicles. Driving a motor vehicle in a public place without insurance is a punishable offense according to the Motor Vehicle Act 1988. Talking about the car, there are 4 types of insurance policies, including third party insurance and own damage insurance. Let’s know about them in detail….

Third-party insurance

Third-party insurance is legally mandatory with the car. Under this, compensation is given to someone or someone walking on the road with your vehicle or to any property. Due to such an incident, the legal liabilities arising on you are settled with this policy.
If a person suffers bodily harm or death from your vehicle, then it gets compensation from this insurance plan. But in this insurance, the vehicle owner or the driver has no responsibility to compensate for any loss. According to the rules of IRDA, it is mandatory to take third-party cover for 3 years on taking a car and 5 years on taking a toweler.

On damage

The policy which is bought only to compensate for the loss to the vehicle is called the Own Damage Policy. In this, the insurance company pays compensation for the damage done to the car. According to IRDAI, under the Damage Section on these conditions, the loss is covered…
Fire, explosion, auto fire, lightning
Earthquake
Floods, hurricanes, cyclones, tornadoes, thunderstorms, water planets, hail, snowfall
While traveling by rail/road, inland waterways, elevators, elevators, or air
Landslides
Burglary / Robbery / Theft
Riot and strike
External factors accident
Malicious act
Terrorist act
Fire, explosion, auto fire, lightning
Earthquake
Comprehensive policy or package policy

When Own Damage Policy is also included in the same package along with third-party insurance, it is called Comprehensive Policy. Along with the loss of another person and vehicle, such a policy also compensates for the damage done to your vehicle by a single policy. IRDA has abolished the imperative of taking this long-term package policy. Traveling by rail/road, inland waterways, lift, lift, or air
Landslides / rocksBurglary / Robbery / Theft
Riot and strike
External factors accident
Malicious act
Terrorist act

Now it will be optional to take third party insurance and own damage insurance in the package for vehicle owners. From 1 August, it will be necessary to take a third party cover for 3 years for taking a new four-wheeler and 5 years for taking a toweler. At the same time, there will be two options for On Damage Cover. Firstly, the customer can take one year on damage cover in a bundle with third party insurance, and second can take two different policies for the third party and on the damage.

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