You probably know that you must have Third Party Motor Insurance or Comprehensive Motor Insurance to legally drive a vehicle on the road.
That’s why when the police on the road find that a person does not have a bike/car insurance policy, it finds him.
There are basically two types of motor insurance policies, third-party policies, and package policies. A liability insurance policy indemnifies third parties for damages caused by injury, death, or property damage on your behalf.
Note here that third party insurance (whether it is two-wheeler insurance or car insurance policy or commercial vehicle insurance) does not cover the policyholder and his vehicle, in which only the third party is compensated for the loss.
On the other hand, a package policy or comprehensive policy covers the insured vehicle and its rider along with the benefits of third-party insurance. Here we will know what is covered and what is not in a bike and car insurance policy.
Sometimes it has been seen that some people have a package policy but they still get their vehicle repaired after the accident with their own money. Maybe they do this because they are not aware that their car insurance policy can cover the loss.
Some people also do this because it takes some time to get the insurance claim and due to paucity of time, they compensate from their own pocket.
We cannot do anything for those who do not take their car insurance claim due to paucity of time and it is advised to such people that if they do not want to take the benefits of a comprehensive policy then it is better to go to a third party Take insurance.
But we can certainly help those who do not know what their bike and car insurance policy covers and what does not.
Next, we will see in which situations a claim can be made in a motor insurance policy and in which it is not?
If you have a package policy then you must know the benefits of car insurance completely (as you pay a much higher premium in package policy as compared to the third-party insurance policy). So that you will easily know when you can take advantage of it.
As mentioned above, there are basically 2 types of motor insurance policies: third party and package policies, and the benefits available in these are also different, so we will discuss both separately.
What do a third-party bike and car insurance policy cover?
It is necessary to have a third-party insurance policy to drive a vehicle on the road, if someone drives a vehicle on the road without it then it is illegal.
The name itself suggests that this car insurance policy is designed to cover the third-party damages caused by the insured vehicle.
Legally, when a driver injures a person in an accident that renders the victim handicapped, hospitalized, or dies, it is the driver’s responsibility to compensate that person for the loss.
In such a situation, motor insurance comes in handy, which gives the compensation decided by the driver to the aggrieved person.
In the absence of a car insurance policy, the compensation as decided by the court has to be paid by the driver himself.
Here below is what a third-party bike and car insurance policy covers and what does not.
Benefits of Third Party Car Insurance
- Damage to third-party property is covered under the third-party car insurance policy.
- According to his income in the event of the victim being disabled in a vehicle accident, hospitalization, or death.
- Whatever compensation is decided by the court, the vehicle insurance company has to pay it. Compensation can also be in crores.
- If the driver is permanently disabled or dies in an accident, then in this situation the insurance company also gets compensation to the driver. But if the injury is minor and temporary, then in this situation the driver does not get any compensation.
The following things/conditions are not covered by Third Party Motor Insurance
- There is no compensation for willful damage to himself or his vehicle.
- If the accident occurs under the influence of alcohol or any drug, then the insurance company rejects the claim.
- Damage due to nuclear weapons is not covered under the car insurance policy.
- When driver does not have a valid driving license then the claim is not received.
- If the vehicle is used for unlawful purposes.
- If the accident happened outside the geographical limits, then the insurance company is not bound to pay the claim.
- Claims can also be rejected in case of electrical or mechanical equipment failure.
Benefits of Package Bike and Car Insurance
The package policy is designed to cover the vehicle and its driver along with the benefits of third-party car insurance. Package car insurance has a higher premium to pay as compared to a liability insurance policy.
Cover against theft, riots, self-ignorance, fire, lightning, explosion, etc. can be obtained in such a policy. The dates to be covered in the package policy being sold by each insurance company vary.
Every insurance company wants to entice the customer by offering maximum benefits that is why it becomes difficult to tell what are the benefits of your car insurance and what are not.
For accurate information, you have to read the benefits of your car insurance, it is clearly written on it what is included in your policy and what is not.
Below are some of the conditions which are usually included in every package policy but as mentioned you will get the correct information from your policy documents.
Benefits of package policy car insurance
- The damage caused due to the fault of others is compensated in the car insurance policy key.
- In this, compensation is given to third-party persons who have suffered bodily harm in an accident.
- If the property of the victim is damaged in the accident, then compensation is also given for that.
- Damage caused to the insured vehicle due to natural calamities such as earthquakes, storms, floods, cyclones, etc. is compensated.
- Compensation can also be taken in case of vehicle theft.
- Car insurance claims can be taken even if the vehicle is damaged due to fire, self-ignorance, explosion, riots, terrorist acts, etc.
These things/conditions are not covered in the package policy.
- It does not include the cost of repairs, such as tire replacement, that occur with the age of the vehicle.
- If the insurer does not have a valid driving license then the insurance company does not accept any claim.
- The loss of the vehicle is not fully compensated by the insurance company, some part of it has to be paid by the policyholder, for example in some policies 30% of the cost of compensation has to be paid by the owner of the vehicle from his own pocket.
- There is no claim for a breakdown of electrical and mechanical equipment.
- Unlike third-party insurance, no claim can be made if the vehicle is used for illegal activities.
- No claim can be made even in case of intentional damage to self or own vehicle.
- The claim is rejected even if the accident occurred due to the effects of intoxicants or drugs.
- Damages caused by nuclear war or nuclear weapons are not compensated.
The above-mentioned conditions are commonly seen in all comprehensive car insurance policies. If the policyholder wishes, by purchasing a rider (in the parlance of insurance, the rider is called an additional benefit), one can also take cover for those situations which are not covered in the comprehensive policy. For more details ask your insurance agent about add-on cover.
