Why Third Party Insurance is not Enough for Car?

Most people tend to evade taxes or payment of liabilities unless mandated by law. Keeping this in mind, the Indian Motor Vehicles Act had announced that it is compulsory for every vehicle owner to buy a third party insurance cover. But don’t be wary about buying it. This insurance protects vehicle owners against liability stemming from any third party in case of any road accident. Classified under Section 146 of Motor Vehicles Act 1988, the insurance company compensates the vehicle owner to the extent of any third party liability in case of any unfortunate incident.

However, having a third party insurance cover only is not enough. The insurance company is liable to pay for damages caused by the vehicle of the insured to any vehicle or property belonging to some other person. Any damage that may have been caused to the vehicle of the insured due to theft or accident is not covered under this Act. To ensure that vehicle owners may get compensated for the damage suffered, it is always advisable to invest in a comprehensive insurance cover.

Having a Comprehensive Insurance Cover Helps

Whether one buys car insurance online or offline, the comprehensive insurance cover is evaluated by the insurance company after taking into consideration the average vehicle age, condition of the vehicle, its estimated replacement cost among others. As the prices of repairing vehicles are going up with each passing year, it is advisable for those having a motor insurance policy to invest in a comprehensive insurance cover. The Insurance Regulatory and Development Authority of India (IRDAI), in its recent guidelines, has lowered the third party insurance premium for 2018-19. With fewer expenses towards third-party premium, experts of the motor insurance industry advice in favour of investing in add-on covers including breakdown assistance, cover for engine of the vehicle and nil depreciation for added protection and lower expenses to be incurred in future.

 

Go For Additional Riders

Paying for additional riders, while buying car insurance online or offline, offsets the liability of paying towards any unnecessary vehicle-related expenses in future. For example, one can invest in add-on covers to the basic motor insurance policy, the pricing for the same being based on the insured declared value of the vehicle.

Having a zero depreciation cover helps extend full protection to the vehicle of the insured sans any co-payment options. Policyholders who pay for zero depreciation cover get full claim on the value of the vehicle’s parts including its windshield, rubber, fiber and plastic items that have been damaged or need to be replaced in the case of an accident or under unfortunate circumstances. In most cases, vehicle owners are offered zero depreciation cover for the initial five years subject to payment of an added premium amount.

Since the zero depreciation rider does not cover damages caused to the engine, if there arises any need for repairs or replacement, an add-one engine cover is advisable. Investing in break-down assistance covers helps cover the expenses that may have to be incurred in case of vehicle breakdown or accident on the road. Break-down expenses include replacement of a flat tyre, fixing an alternate battery, ordering for an alternate key, payment for towing of the vehicle to repair workshop, payment for emergency fuel or making arrangements for an alternative vehicle, if required.