Third-party car insurance provides coverage for the claims that a third party files against you. On the other hand, a comprehensive 4-wheeler insurance policy provides coverage for own-damage cover. It also includes personal accident insurance that covers the expenses related to injuries and health.
A third-party liability cover is pre-included in the comprehensive car insurance policy. However, as the third-party car insurance policy is made compulsory by the Indian government for driving on roads, it is a must-have. The following are the advantages of having a third-party liability cover:
Protection against third-party claims
Suppose that you meet with an accident while travelling. The owner of the other car might hold you responsible for the accident. Therefore, they may ask you to reimburse the damages caused to their car along with the expenses that they had to bear due to injuries sustained during the accident.
A case will be registered against you in the Tribunals Court. The judge will hear both sides and consider all the proofs before deciding. Third-party car insurance ensures that you don’t have to pay charges even if the other party wins the case.
Prevents a penalty
As the party can file charges against you, filing a third-party liability against the other party is possible from your end too. However, if you do not possess third-party 4-wheeler insurance at the time of the accident, you will have to pay a penalty. Therefore, to avoid the penalty, always carry your driving license, insurance papers with you while driving.
Allows inclusion of personal accident cover
If you want to include a personal accident cover along with the third-party liability cover, you may do so. A personal accident insurance reimburses the medical bills that are payable from your end to treat injuries.
Also, severe accidents can lead to major injuries, resulting in higher costs. Taking a personal accident cover as a rider with your existing plan is the right decision to protect your finances from such incidents. It pays a fixed sum insured to the policyholder after an accident. Therefore, you can reduce some of the financial losses you bear due to the accident.
Affordable
A third-party liability cover is much more affordable than a comprehensive car insurance plan. Although it only protects you from the claims levelled by the other party.
A comprehensive car insurance policy not only provides coverage for third-party claims but also provides reimbursement for the costs required to replace or repair the damaged parts. A comprehensive car insurance plan is expensive compared to third-party liability cover because it provides many other features. Some of these features are discussed below:
Cashless cover
With a comprehensive car insurance policy, you can get a cashless cover, i.e. you can get your damaged vehicle repaired without paying anything after an accident. For that, you just need to inform the insurer and take your car to the garage.
However, that garage must belong to the network garages mentioned in the policy papers. Therefore, if you want a comprehensive car insurance policy, you must check the network garages nearby your home before purchasing a particular policy.
Protection from disasters
The damages can also be inflicted due to earthquakes, floods, landslides, or any other natural calamities. Also, man-made disasters like riots, terrorist activities, and strikes can be the reason behind the damage. To avoid the financial implications of both natural and man-made catastrophes, you should opt for a comprehensive 4-wheeler insurance policy.
No-Claim Bonus
No-Claim Bonus is a reward for not claiming the insurance for the entire policy term. You can also ask for a reduction in the premium or claim better coverage or benefits from the insurance provider.
Usually, the insurance provider offers a discount of 50% on the premium if you maintain the NCB status across the policy term. If you happen to change the insurance provider, around 50% of the NCB can be carried forward with the next insurance provider as well. To maintain your NCB, you must drive carefully on the roads. Also, avoid claiming insurance cover for minor accidents and damages.
Remote assistance
Remote assistance may be required when you get stuck somewhere. Some insurance providers offer this service to their customers. Therefore, it can also be one of the criteria while choosing comprehensive coverage for your car.
Add-on plans
Add-on plans can be included only with a comprehensive car insurance policy. The inclusion of add-on plans makes your existing policy much more helpful. Nil depreciation cover, engine protection cover, co-passenger cover, etc. are popular insurance plans in the add-on category.
More details about third-party insurance, add-on cover plans, and comprehensive car insurance can be found on the website of Bajaj Finserv. If you find any impressive third-party or comprehensive cover plan, you can get it via a simple online process.
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