What is Comprehensive Insurance
Comprehensive Insurance is insurance coverage which typically covers repair or replacement of vehicle damages resulting from an incident, own damage from an accident, fire, natural calamity, theft, in addition to third party liabilities. So, the damages to self, car, as well as the other party involved in the accident are covered by the comprehensive policy.
In India, car insurance is broadly divided into two categories: (i) Comprehensive car insurance (ii) Third party car insurance.
With third-party insurance, you are only protected against the damages, losses, or injuries caused to the third party in case of a road accident involving your car.
Features of Comprehensive Insurance
- It is an extensive insurance policy that covers risk related to your own damages in addition to third party liabilities (loss or damages). Own damages, means accidental death or disability compensation for the owner driver of the vehicle.
- It means it also covers accidental third-party property damages or physical injury along with any damages sustained by the insured car due to unforeseen incidents such as accidents, theft, manmade and natural calamities.
- Coverage can be further extended by opting add-on-covers such as engine protector, accessories cover, medical expenses, zero depreciation cover, etc.
- That is why Comprehensive insurance is widely popular as it makes stress free to policy holders.
Coverage under Comprehensive Insurance
Followings are the coverage comes under Comprehensive insurance:
- Accidental damage
- Own damage (Personal accidental injuries or death).
- Fire, self- ignition, or explosion.
- Damages caused by animal or birds.
- Damages caused by extreme weather conditions and natural disaster such as hurricane, tornado, storm, flood, earthquake, etc.
- Manmade disasters like Vandalism, riots, strikes, etc.
- Third party liability means, physical injuries, death, property damages caused to third party caused by insured car.
There are some exclusions under Comprehensive insurance as mentioned below:
- Wear & tear, aging of the automobile.
- Damages caused to tubes and tyres. However, if these are damaged due to an accident, about 50% replacement charges are borne by insurance provider.
- Damages caused by a driver not having valid driving license.
- Damages caused due to driving under the influence of intoxicants.
- Mechanical or electrical breakdown.
- Any loss or damages caused by mutiny war, or nuclear attack.
Comprehensive Insurance vs Third Party Insurance