What are the benefits of car insurance?कार इंश्योरेंस के फायदे क्या होते हैं? 2023

What are the benefits of car insurance?कार इंश्योरेंस के फायदे क्या होते हैं? 2023

Car insurance is such an insurance policy, which provides compensation for the loss caused to you in the event of an accident or accident. Such damages include compensation for damage to your car, damage to your body, and damage caused to another person by your car. In this article, we will know what are the benefits of car insurance?

Benefits of Car Insurance?

What benefits you get on getting car insurance depends on which category of car insurance you have taken. If you have taken only third party insurance then you get less benefits. On the other hand, if you have taken comprehensive insurance, then you get more benefits. Here we will explain the benefits available with both types of plans separately.

Option 1: If you get or buy only third party insurance then…(What are the benefits of car insurance?कार इंश्योरेंस के फायदे क्या होते हैं? 2023)

Will get compensation for the damage done to someone else: If you have got only third party insurance done, then the insurance company gives compensation for the damage done to someone else by your vehicle. For example, compensation for damage caused to another vehicle, compensation for bodily harm caused to another person and compensation for damage caused to another person’s property is provided by your insurance company. The insurance company also bears the burden of litigation or court proceedings in connection with the determination of such compensation.

But, no compensation for damage to your vehicle or your body: Having only third party insurance does not cover any damage caused to your own vehicle. There is no compensation for the damage caused to your body or the damage caused to the passengers sitting in your vehicle. Despite this, you need to get third party insurance for your car as it is legally mandatory for any vehicle to have at least third party insurance.

Compensation for damage to your body with compulsory personal accident insurance attached: According to a Supreme Court order, any person buying any type of motor insurance policy, along with compulsory personal accident insurance policy Have to take This policy, in case of an accident, gives you (Owner-Driver) compensation for physical damage up to a maximum of Rs 15 lakh. How much money you can get out of Rs 15 lakh depends on the level of damage done to your body.

The formula for determining the limit of compensation is as follows-(What are the benefits of car insurance?कार इंश्योरेंस के फायदे क्या होते हैं? 2023)

• On the death of the insured (for Death)-100% means that the full amount of insurance will be received.
• In case of loss of both hands or both legs-100% ie full amount of insurance will be received.
• 100% i.e. the full amount of the insurance will be given in case of permanent loss of vision of both the eyes.
• In case of loss of one arm and one leg, 100% ie full amount of insurance will be received.
• Permanent loss of sight of one eye along with loss of one hand or one leg will give 100% i.e. full sum assured.
• In case of total permanent disability due to any other type of injury, 100% i.e. full sum assured will be given.
• In case of permanent loss of only one hand or only one leg or only one eye, 50% i.e. half of the sum assured will be given.

Option 2 Get comprehensive insurance done or buy then (What are the benefits of car insurance?कार इंश्योरेंस के फायदे क्या होते हैं? 2023)

The biggest advantage you get by taking Comprehensive Car Insurance is that you get compensation for the damage done to yourself and your own vehicle. Along with this, you get all the benefits of third party insurance mentioned above. Because, along with comprehensive insurance, it is also mandatory to take third party insurance and compulsory personal accident insurance. Thus, by getting comprehensive insurance, you get the following 4 types of insurance protections-

You can also increase other types of insurance protections by adding add on insurance: There are some damages caused to the vehicle or the vehicle owner in accidents, which are not included in the comprehensive insurance. By adding add-ons insurance, such additional insurance facilities can be availed. You cannot get permission to add add-ons just by taking Third Party Insurance. For this, it is necessary to take Comprehensive Car Insurance. We are giving the names of some major add-ons and their benefits below-

• Zero depreciation cover: As the age of the car increases, the compensation for its parts and equipment depreciates by a certain percentage. Zero depreciation cover neutralizes this depreciation and provides full compensation for the damaged parts of the vehicle when replaced in case of an accident. To understand in detail see: What is Zero Depreciation Cover?
• Engine protector cover: If you have comprehensive insurance, you get compensation if the engine is damaged in an accident. But, if the engine gets damaged due to any technical fault or due to excessive use of the vehicle or due to ingress of water etc., then the facility of repair or replacement is not available under comprehensive insurance. By adding Engine protector cover add on, you get compensation for engine repair or replacement even in these situations.
• No claim Bonus protector: If you have not made any claim during the entire term of the insurance policy, then next time you get the policy, you get the benefit of No claim Bonus and have to pay less premium. But, if you have opted for the No claim Bonus protector add on twin, then even after making a claim 1 or 2 times during the term of the insurance policy, you get the benefit of the No claim Bonus and have to pay a lower premium the next time. To know in detail see: What is No Claim Bonus in Vehicle Insurance?
• Return to invoice: The advantage of adding this add-on is that in case of theft or total destruction of the vehicle, the compensation is equal to the full amount paid to purchase the car. Whatever amount is recorded in the receipt for the purchase of your car. Whereas, in the absence of Return to invoice add on, you get insurance claim according to the insurance declared value (immediate market value) of the vehicle, which may be less or much less than the value recorded in its receipt.
• Key replacement: The advantage of adding this add-on is that it helps when the car keys are lost or when the electronic key is lost or damaged. Key replacement add on gives you compensation from the insurance company for getting a new key or getting the lock-set repaired. Nowadays electronic key system has started coming in expensive vehicles, which is called Frequency Operated Buttons (FOBs) system, whose replacement or repairing cost is very expensive.
• Roadside assistance: It is also called Breakdown cover. The advantage of adding this add-on is that you are sent a professional technician to fix your car during travel, or in case your car breaks down in a remote area. You are provided with the facility of repairing on the spot. If necessary, the insurance company also arranges to tow the vehicle to the nearest authorized service center. You can avail this facility by calling the phone number provided by the insurance company. This help is not counted towards your insurance claim.
• Apart from the above mentioned Add Ons, there are many other types of Insurance Add Ons as well, which add different types of insurance facilities. To know and understand about these in detail, see our article: What are add on insurance? How many types are there?

Some other important information about car insurance:(What are the benefits of car insurance?कार इंश्योरेंस के फायदे क्या होते हैं? 2023)

What are the penalties for not having car insurance and what other damages can happen?

If you are caught driving a car without an insurance policy on the road or in public places, you can be fined Rs 2000 or jailed for up to 3 months. If caught doing this again, there can be a fine of up to Rs 4000 and a jail term of up to 3 months.

Apart from this, in case of an accident, you have to pay for the damages caused by your vehicle to any other vehicle or to any other property. You may also have to pay compensation in case of injury or death of another person. This compensation is decided according to the economic status of that person, which can be in lakhs or even in crores.

How much does it cost to get or renew a car insurance policy?

There is no fixed rate for renewal of car insurance policy. Because it depends on many facts. For example, what kind of policy you have taken. If only third party insurance is taken then it will cost less money. If you have taken comprehensive insurance, then it will cost more money. Apart from these, if you have added add-on insurance, then it will cost more money.

The conclusion is that the more types of insurance protections and facilities you have included in your plan, the higher will be your insurance premium. This is applicable for new insurance as well as for renewal. To know how much you have to pay for taking third party insurance only, see our article: What does third party insurance cost?

Does having car insurance cover the injuries caused to the passengers sitting in the vehicle?

If you have only third party insurance, then it does not provide any insurance cover to the driver or passengers in your car. Even if only comprehensive insurance has been taken, it does not provide any insurance protection to the passengers. For this, you have to add addon insurance separately, which can be added separately if you have a comprehensive insurance policy.

Can an insurance claim be made every time in case of repeated accidents?

Normally, no such limit is fixed in relation to an insurance claim. You can claim any number of times in a year. But, keep in mind that once the claim is made, you do not get the benefit of No Claim Bonus if you renew the policy. Apart from this, you should read the rules of your insurance policy carefully. If it mentions the number or limit to claim, then it will also apply to you.

Is it necessary to renew the insurance policy at the end of its term? What are the disadvantages of not renewing?

• The car insurance policy should be renewed before it expires. So that you continue to get the benefit of insurance protection. If you do not renew on time, you do not get any compensation in case of an accident or theft during that period. But, keep in mind that the accure policy can also be renewed. It should be renewed as soon as possible, so that again you can get the benefit of insurance cover.
• The second disadvantage is that you will have to go through a bit more hassle while renewing the policy. In such a case, your insurance company will send a surveyor to inspect your vehicle before insuring it. All these processes waste your time and money.
• The Third disadvantage you can also face is that legal action can be taken if caught driving without insurance. It may be noted that according to the Indian Motor Vehicles Act, 1988, it is mandatory for any motor vehicle to be insured. There should be at least third party insurance.