Private car insurance policy provides coverage for loss of or damage to your vehicle against the risk of accident, fire, theft, floods, earthquake, riot, strike etc. The policy also gives coverage for your liability arising out of death, injury to third party and/ or third property damage.
This 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 (but we wouldn't recommend that!).
The quote that you get for TP cover is the sum of its components which include:
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:
Condition Relating to Engine Capacity Applicable Premium Rate
|Not exceeding 1000cc||Rs. 2,055|
|Above 1000cc but lower than 1500cc||Rs. 2,863|
|Exceeding 1500cc||Rs. 7,890|
This covers damages to the third party, as well as your own 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:
The own damage premium depends on Insured Declared Value (IDV), engine capacity and vehicle RTO. The IDV is the value of the car based on its ex-showroom price and depreciation percentage. An add-on cover depends on your car’s requirement and thus is a variable. The service tax is charged on the OD premium.
For the repair or replacement expenses of plastic, rubber, glass and other materials which would otherwise not be covered in a regular policy.
For times when the monsoons are at their destructive worst, and leave your car's engine and your tear glands vulnerable to flooding.
To continue enjoying a discounted premium on your no-claim bonus year-on-year, even after making a claim during the policy period.
To recover as much as the car's on-road price or Insured Declared Value, in case of total loss (such as theft or a really bad accident).