Car insurance is a mandate in India as per the Indian Motor Act. However, it needs to be noted that only third-party insurance is compulsory. To choose the most suitable motor insurance based on your requirements it’s important to first know the types of car insurance provided by insurance companies. What is this third-party insurance? Let’s go through the three broad categories of motor insurance in India to understand this:
1. Third-party car insurance
: Only third-party insurance is mandatory by Law. In case you come across an accident, a third-party car insurance policy will reimburse the car that you dashed into. The other party will receive compensation for the damage and you can be protected from a financial catastrophe.
2. Comprehensive Insurance
: A comprehensive insurance not only provides the coverage of third-party insurance but it also provides protection for your own vehicle. It is the most extensive coverage that you can wish for and is highly recommended by us. Therefore, among all the different types of car insurance provided, comprehensive car insurance proves to be giving the maximum coverage.
1) Liability only policy ( Term of Coverage )
- Annual, 12 months
- Long Term
- Private car - 3 yrs
- Two Wheeler - 5 yr
It's Mandated by the Law, every vehicle has to be insured for third party insurance to ply on roads. Its Compulsory cover to ply the vehicle on road, It Covers Third party (TP) death, injury and property damage2) CPA ( Compulsory Personal Accident –Owner Driver ) for 1 Yr
This personal accident cover provides compensation in case of death or permanent disabilities due to an accident involving the insured vehicle.
CPA ( Compulsory Personal Accident –Owner Driver ) for 1 Yr
- Mandatory Cover
- Unbundled recently by IRDAI
- Policy Duration 1 Year
- One CPA policy covers the insured for all the vehicles owned by him/ her.
- To be eligible for Compulsory Personal Accident
- The insured has to be the owner of the vehicle
- Should have a Valid Driving License
- SA Limit is Min 15 lacs. (In case insured has other PA policies differential SA can be opted by insured)
Customer can opt-out of this cover if he already has other PA cover covering (Death & Permanent Disability) up to the extent of minimum 15 lacs or is covered with other CPA policy under motor insurance in other vehicles owned by him.
3) Package/Comprehensive policy
Covers for the Loss or damage caused to the Automobile or its Parts due to Natural or man-made calamities.
- It Provides Accidental Cover for Individual Owner of the vehicle while Driving and Also For passenger
- It also Provides Coverage for Third-party Legal Liability. ( Mandatory )
Coverage provided in term of the policy period -
The following are the features of Reliance comprehensive
Car Insurance policy
# Up to 70% discount on the following models while buying car insurance in India: Swift Dzire, WagonR, Maruti Alto, Honda City,SX4, Swift, Figo, Amaze and the following cities: Delhi, Banglore, Pune, Chennai, Mumbai.
*Above mentioned discounts has been calculated on the basis of rate prescribed under erstwhile Indian Motor Insurance Tariff.
The premium amount is subject to change in case of any change in the actual claim status subsequent to the date of this communication.