Safeguarding your car against different risks is a smart thing to do. According to the law in India, it is mandatory to have a Third-Party Insurance done, in the absence of which the owner is subjected to penalty. Besides the law, an auto insurance covers numerous other benefits as well, a few of which have been mentioned below:
1. Loss or Damage to the Vehicle
Life is uncertain and so do accidents that can cause both minor or major damage to your car. A standard auto insurance comes with several benefits that helps you to bear the cost of repairing and gets your car back on road. Auto insurance covers man-made threats like theft/burglary, strike, malicious act, riot, terrorist activity and the damage caused due to natural calamities like fire, earthquake, flood, hurricane, storm landslide, etc. The insurance company compensates you for the financial loss due to any such damage.
2. Third Party Liability
It is up to you to get auto insurance done for your vehicle, however third party insurance is mandatory in the country under the Motor Vehicle Act. In case of an accident associated with your vehicle, an auto insurance policy covers the legal liability occuring due to an injury or death of a third party and also property damage of the third party. However, the compensation is limited for the damage of Third Party property, while bodily injury depends entirely upon the then situation.
3. Personal Accident Cove
Personal accident cover is also mandatory for the owner driver in an auto insurance policy. It covers permanent total disability and accidental death. An auto insurance policy also covers both the named as well as unnamed passengers up to the seating occupancy of the vehicle and paid driver.
Although the personal accident coverage for your car would depend entirely on the IDV (Insured’s Declared Value) or the manufacturer’s listed selling price subtracting the depreciation for each year. Please note here that IDV is the highest amount payable in case of a claim for total loss or theft.
With so many benefits, it is necessary to have an auto insurance done, both for your wallet and for gaining peace of mind. This is one of the best ways by which you can safegurad yourself from enormous risks that come as your car steps on the road.