All About Comprehensive Car Insurance Policy

As per the Motor Vehicles Act, 1988, third-party liability insurance is mandatory in India. But this kind of insurance cannot compensate for losses due to damage to your own car. To cover the damages to your own car, there is a comprehensive insurance policy.

A comprehensive car insurance policy covers the cost of damages to your own car in case of the accident or other circumstances as covered in your policy.

A comprehensive car insurance policy covers for ‘own damage’ in addition to third party liabilities. The ‘own damage’ coverage provides protection against losses and damage from:

• Man-made mishaps: These include burglary, theft, riot or strike, any malicious act -- like vandalism, meeting an accident and in transit damages caused on the road.
• Natural Calamities: These include lightning, earthquake, flood, typhoon, hurricane, storm, flood, cyclone, hailstorm, frost, landslide, rockslide, fire, explosion etc.
• Third-party Cover: A comprehensive policy also covers liabilities arising out of damages caused to third-party.
• Personal Accident Cover: This cover insures the owner of the policy for death or partial/full disability in case of an accident.

A comprehensive insurance policy has some exclusions that are not covered. While some of these inclusions can be covered by taking add-on covers, a few others fall under the category of permanent exclusions.

• It is damaged due to an act of war, nuclear accidents, terror attacks, etc.
• It is damaged due to irresponsible driving behaviour of the driver, such as breaking the traffic rules, willful accident, etc.
• It is damaged due to wrong use of the car; for instance, using a commercial vehicle for personal use or vice-versa.
• It is damaged due to an accident caused by a driver that does not hold a valid driving license.
• It is being driven in a location that is beyond the boundaries covered by the policy.

• Zero Depreciation Cover
• Return to Invoice Cover
• Roadside assistance cover
• Engine Protection Cover

1. Permanent Exclusions: Your comprehensive car insurance policy will not cover damages caused to your car if;
2. Exclusions that Can be Covered with Add-ons: Some exclusions can be covered in your policy by taking add-ons, such as;

Comprehensive coverage for your car can make you feel completely secure from any car-related trouble in case of accident or theft. In times like these, when the road accidents are at an all-time high, a comprehensive policy can ensure protection from possible losses while ensuring you can have peace of mind.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.