Basics of Car & Two-wheeler Insurance

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Life is full of uncertainties and it amplifies many folds when you’re behind the wheel of a car, or the handle of a motorcycle, all on the notorious roads of India. Life changing instances aside, there are also these inevitable situations, where on a clogged road, a public transport bus could uproot your car’s side mirrors from its position, or that recklessly driven auto rickshaw could kiss and dent your bumper, or some stranger might just lean against your motorcycle and make it tip over.

With the number of vehicles that ply on Indian roads increasing by the day, car insurance/two-wheeler insurance is a vital survival tool, insurance isn’t an option anymore, but a necessity. The Government of India has made third party insurance compulsory for all vehicles, which ensures that if in an unfortunate event your vehicle hits another being, the policy covers the damage you may cause to the other person. But comprehensive car insurance/two-wheeler insurance is what will iron out the lines on your forehead and cover you in most situations, which would otherwise cause a big dent in your bank balance.

Car Insuarance

Generally, here’s what a comprehensive car insurance/two-wheeler insurance policy covers:

1. Loss or damage due to

• Accident, burglary or theft
• Riot and strike
• Fire explosion self-ignition or lightning
• Natural Calamities
• Transit by road, rail, inland waterways, air or lift.

2. Personal Accident cover for owner/driver of the car

Death benefit of Rs.2 lakhs for the owner/driver in case of accidental death.

3. Third party bodily injury liability covers penalty to be given to victim 

It covers the injury or death of the person hit by you.

4. Property damage liability

Covers penalty you need to pay in case of damage to the properties due to the accident caused by you up to the limits as specified in the policy.

Here’s a list of things which are generally not covered by a comprehensive car insurance/two-wheeler insurance policy:

Loss or damage to the car is not included under following conditions:

  • Normal wear and tear
  • Depreciation of the car is not covered
  • Electrical & mechanical failure
  • If you drive the car outside India
  • If you are driving under the influence of alcohol or drugs
  • If the person driving doesn’t have valid driving license
  • Nuclear risks​
  • ​If you use Vehicle for other purposes. Ex: If the private vehicle is used as Taxi

In addition to the car insurance or two-wheeler insurance policy, one can also purchase add-ons, which cover things like depreciation, damage due to water logging, roadside assistance charges and even the cost of consumables like oil, nut bolts etc, at the time of claim. Add-ons for two-wheeler insurance generally cover depreciation and provide a personal accident cover for the occupant.

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