Insurance

Requirements of  Document

Vehicle Insurance is a contract between a vehicle owner and an insurance company that provides financial protection against losses or damages to the vehicle or third-party liabilities arising from accidents, theft, natural disasters, or other unforeseen events. In exchange for a premium payment, the insurance company agrees to cover specific risks outlined in the policy.

Types of Vehicle Insurance

1. Third-Party Liability Insurance:

   • Mandatory by law in most countries.
   • Covers damages caused to a third party's property or injuries/death to third-party individuals.
   • Does not cover damages to your vehicle.

2. Comprehensive Insurance:

   • Covers both third-party liabilities and damages to your own vehicle.
   • Includes protection against theft, natural calamities (floods, earthquakes), fire, vandalism, and accidents.
   • Offers the option to add various riders for enhanced coverage.

3. Standalone Own Damage Cover:

   • Covers damages to your vehicle only, not third-party liabilities.
   • Useful if you already have third-party insurance.

4. Pay-As-You-Drive Insurance:

   • Premium depends on the usage of the vehicle.
   • Suitable for those who don’t drive frequently.

Key Features and Benefits

• Financial Protection: Reduces the financial burden of repair or replacement costs.
• Third-Party Coverage: Fulfills legal obligations and compensates third-party damages.
• Customizable Coverage: Add-ons like zero depreciation, roadside assistance, engine protection, etc.
• Personal Accident Cover: Covers injuries or death of the driver and sometimes the passengers.

Common Add-Ons

• Zero Depreciation Cover: Full claim without considering depreciation on parts.
• Roadside Assistance: Help in case of breakdowns.
• Engine Protection Cover: Covers engine damage due to waterlogging or other issues.
• Consumables Cover: Includes items like nuts, bolts, and lubricants in claims.
• No-Claim Bonus (NCB) Protection: Retains NCB benefits even after a claim.

Exclusions (What’s Not Covered)

• Regular wear and tear.
• Driving under the influence of alcohol or drugs.
• Unauthorized vehicle usage.
• Damages due to war or nuclear risks.
• Mechanical or electrical breakdowns.