Coverage Details of a Car Insurance Policy: Key Inclusions

Choosing the right car insurance coverage is essential to protect your vehicle from financial losses arising from accidents, theft, or natural disasters. Understanding what your policy covers helps you make informed decisions and ensures peace of mind while on the road. Here’s a breakdown of all coverage details you should know.

What Does Car Insurance Cover?

A standard car insurance policy covers damages to your car due to accidents, theft, fire, and natural disasters, as well as third-party liabilities. Comprehensive plans also allow for customisation through add-ons like zero depreciation and engine protection. With providers like Bajaj General Insurance, claims are processed efficiently, and cashless repairs/services can be carried out across 7,200+ cashless garages.

Types of Car Insurance Policies in India

Third-Party Liability Insurance

• Mandatory under Indian law
• Covers legal liabilities arising from injury or death of a third party
• Includes property damage compensation (up to ₹7.5 lakh)
• Does not cover your own car’s damages

Comprehensive Car Insurance

• Covers third-party liabilities + own vehicle damages
• Protection against natural disasters, theft, fire, riots, and accidents
• Includes optional add-ons like engine protection, zero depreciation, and NCB protection
• Ideal for new, financed, or high-value vehicles
• Offers personal accident cover for owner-drivers

Also Read: Everything You Need to Know Car Depreciation

Standalone Own Damage Insurance

• Only covers damage to your own car
• Must be combined with a valid third-party policy
• Useful if you already have long-term third-party cover
• Covers accidental, fire, flood, and theft damage

Bundled Insurance (For New Vehicles)

• Includes 3-year third-party + 1-year own damage for cars
• Mandatory for newly purchased vehicles as per IRDAI
• Ensures compliance and simplifies renewals

Pay-As-You-Drive Insurance

• Premium is based on distance driven and usage pattern
• Ideal for low-mileage drivers
• Encourages safe driving habits

Also Read: Everything About Bundled Plan for Brand New Car

Conclusion

Understanding your car insurance cover is key to ensuring the best protection for your vehicle and finances. From third-party to comprehensive and bundled plans, each policy offers varying levels of coverage. Choose a trusted provider like Bajaj General Insurance for reliable support and access to 7,200+ cashless garages across India, along with digital claim assistance.

FAQs

Q1. How do add-on covers enhance my car insurance policy?

Add-ons like engine protection, zero depreciation, and roadside assistance provide extended coverage beyond the standard policy, improving protection and claim value.

Q2. Are damages due to natural disasters like floods covered?

Yes, if you have a comprehensive car insurance policy, damages caused by natural calamities such as floods, cyclones, and landslides are covered.

Q3. What factors affect the premium of my car insurance policy?

Premium depends on vehicle age, make and model, city of registration, claim history, selected add-ons, and No Claim Bonus (NCB) eligibility.

Q4. Are damages due to natural disasters like floods covered?

Yes, flood-related damages are covered under comprehensive car insurance, but not under a third-party-only policy.

*Standard T&C apply

**Claims are subject to terms and conditions set forth under the motor insurance policy.

***Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

****Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.