For insurance of 4 wheeler vehicles specially designed or modified for the disabled person, a discount of 50 percent would be allowed on the “Own Damage” premium irrespective of whether the vehicles are for private use or driven by organizations involved in providing service to the blind, physically handicapped or mentally challenged persons. The insurance companies allow discount only to those vehicles that have been suitably endorsed in the Registration Certificate by the Road Traffic Act (RTA) concerned.
But understand the meaning of types of insurances.
The new Motor Vehicle Act 2019 has been implemented to ensure that road casualties in India decrease. You too can help the authorities make Indian roads safe to drive by simply being a responsible citizen and adhering to the rules.
Car Insurance for People with Disabilities.
So you decided to buy a car. Hence it is equally important to know the type of insurances.
- Third Party Insurance
- Own Damage Insurance
- Comprehensive Insurance (Own Damage + Third Party)
Third-Party Motor Insurance
A third-party motor insurance is the most basic policy offered, which takes care of the third-party damages incurred due to your vehicle, when in an accident. The plan not just covers the third-party vehicle damage, but also takes care of the treatment cost of injuries caused to a third-party. As the third-party motor insurance is made mandatory as per law, the plan has gained major significance.
Third party car insurance is compulsory/ mandatory by law under Motor Vehicle Act, 1988. So, in case you do not have basic coverage under your name, you might have to face hefty penalties. In extreme cases, it can also lead to termination of your driver’s license.
Own Damage Insurance
As the name suggests, an Own Damage Insurance is a customized motor insurance policy designed to protect you and your insured vehicle from your own damages, i.e. damages and losses caused to your own vehicle.
Let’s take a seemingly funny but often true example; let’s say your car is parked at its usual place and all of a sudden, the tree beside lets down one of its branches or worse, your neighbor’s cricket ball attacks one of its windows and the ultimate, a coconut falls and leaves not only shackles but dents too!
Funny as a story but, hefty losses in retrospection, in real life! In such situations, an OD insurance is one that could help you get out of such unfortunate troubles.
It covers:
- Damages to your vehicle in an accident
- Theft of your vehicle
- Losses caused to your vehicle in a fire
- Damages caused to your vehicle due to a natural calamity
It doesn’t cover
- Third-party liabilities
- Drinking driving
- Driving without a licence
- Add-Ons not bought
- Consequential damages
- Contributory negligence
Comprehensive Insurance (Own Damage + Third Party)
Along with third-party liabilities and damages, the comprehensive plan offers 360-degree coverage with cover of own damage too. This means, any damage incurred to third-party as well as your vehicle or any bodily injuries incurred when your vehicle is involved in an accident is covered under your plan. Comprehensive plan is a bit more expensive than a third-party cover, however, a comprehensive plan is the most recommended one for its all-round protection.
Apart from the above stated benefits, comprehensive car insurance has other advantages too. It includes –
- Own Car Damage: Along with third-party coverage, this policy also covers claims for damages incurred by your vehicle.
- Personal Accident Cover: In your unfortunate dismissal, or in case of partial or permanent disability because of the accident, your insurer will compensate you or your family members. This thus reduces the financial overhead.
- Human-Made and Natural Calamities: Comprehensive car insurance covers for loss/damage incurred due to natural and human-made disasters.
- Theft: If your car is stolen, you can file a claim. The insurer will compensate for the amount that will be equal to the insured declared value (IDV)
Difference between third party car insurance and comprehensive insurance
third party | comprehensive | |
What is it? | It is a basic car insurance plan that only covers damages and losses your vehicle has caused to other people, vehicle, or property. | It provides all round protection to your vehicle. Not only does it financially covers third-party liabilities but also protects you and your car. |
What is the coverage? | It only offers coverage for third-party damages and losses. It includes damages/losses caused due to accidents or collisions, injuries to a third person or their vehicle, and property. Also, it provides personal accident cover that protects you from personal injuries or death in case of any unfortunate events. | Comprehensive insurance provides extensive coverage that not only protects you against the damage/loss caused to a third-party but also covers for damage/loss incurred by you. For instance, the loss incurred due to a flood-like situation in the city, a comprehensive policy will cover it for you. |
Benefits | It protects you for the loss or injuries to people, their vehicle, or property. Here, you do not have to pay the damage/loss incurred from your pocket. | It protects both damages incurred by your car as well as third-party liabilities. Moreover, you can benefit from No Claim Bonus (NCB) during car insurance renewal – only if you do not claim during the policy term. |
Premium Price | Relatively cheaper than comprehensive insurance coverage). | Usually, high premium rates compared to third-party coverage. The premiums are based on factors like the city of residence, car model, and add-ons you opt for (if any). |
Customization | You cannot customize this policy |
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