Benefits of choosing comprehensive car insurance over third party cover

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Benefits of choosing comprehensive car insurance over third party cover

Monday, 25 January 2021 | Agencies

Benefits of choosing comprehensive car insurance over third party cover

Kanav Sharma, a civil engineer by profession, bought his first car last year as a gift to himself for his promotion. However, just a few months later, he was involved in a small road accident. Fortunately, he was not hurt but his vehicle incurred heavy damage. The repair costs were huge but because he had opted for a comprehensive car insurance policy while purchasing his new car, he did not have to worry about those hefty bills. The insurance company took care of the expenses and he was back on the road with his beloved car, as good as new, without any financial setback.

Kanav was lucky that he made the right choice of opting for a comprehensive car insurance policy. However, in a country like India where around five lakh road accidents get reported every year[1], over 60 per cent of vehicles are uninsured[2]. Not only that, as per the latest data from the National Crime Records Bureau, India witnesses around 2.5 lakh vehicle thefts every year. And sadly, only around 25 per cent of those vehicles are usually recovered[3]. Hence, it is crucial for one to have comprehensive car insurance cover to protect their vehicles.

Third-Party Versus Comprehensive Cover

While having motor insurance is definitely the sensible thing to do, it is also mandatory under law  in India, as per the Motor Vehicle Act of 1988. However, there are two different kinds of policies you can opt for to comply with the law. On one hand, you can simply go for a third-party insurance cover which would protect you from liabilities towards a third party, on the other hand, you could opt for a comprehensive cover. A comprehensive car insurance policy would not only cover you against legal and financial liabilities towards a third party but would also provide protection against damages due to natural calamities, fire, accident and theft.

While it is true that a third-party cover comes with lower premiums, a comprehensive car insurance policy offers a wide range of coverage options and compensates for more than just vehicular collisions. It provides protection against almost any kind of man-made as well as natural calamity.

Why You Should Consider A Comprehensive Cover

When one is involved in a road mishap, there are three parties that are involved. The insured person is the first party, the insurance company is the second party, and the injured person involved in the mishap, who is claiming the damages, is the third party. As opposed to a third-party cover which provides limited protection only against your liabilities towards the third party, a comprehensive insurance policy provides full protection against damages to all parties including your own vehicle, the driver and passenger, as well as the third-party vehicle and its driver.  With a comprehensive cover, you can also customise your insurance policy with additional features, called riders, like a personal accident cover, coverage for your engine and accessories, zero depreciation cover, and even 24x7 roadside assistance.

Buying a car insurance policy or upgrading to a comprehensive cover during car insurance renewal is relatively simple in today’s time and can be done online in just a few minutes. However, one must evaluate the products being offered by various companies before finalising the purchase. A major factor that can make a huge difference is the customer service track record and ease of claims settlement. It is usually a good idea to go with an industry leader like Bajaj Allianz General Insurance, which has an impeccable record of settling claims quickly and seamlessly, with a claims settlement ratio of 98 per cent. It also allows you to purchase an insurance cover for your car online with just a few clicks.

In terms of additional features, when you go with Bajaj Allianz, you can choose from a plethora of add-on benefits like zero-depreciation cover, breakdown assistance, coverage for personal belongings in the car, key and lock replacement, compensation for conveyance post accident and so on. However, the most important reason why you should choose Bajaj Allianz as the insurer for your car is the ease of service with over 6000 network garages across the country which offer cashless repairs and service.

Which Insurance Cover Is Right For You

Choosing the right insurance cover comes down to your specific requirements. While a third-party cover would help you comply with the law, but if you are looking to protect yourself and your vehicle while you are on the road, then a comprehensive car insurance cover is what you need. Offering wider coverage not limited to only third-party, a comprehensive cover would free you from all the financial worries when you take your car out for a drive. Accidents, by their very nature, are unexpected and sudden, and they can weigh heavily on your finances.

Be a smart consumer like Kanav, and get complete coverage for yourself and your car so you can focus on more important things in your life.


Source:

[1] https://www.thehindu.com/news/national/other-states/15-lakh-people-die-in-five-lakh-accidents-every-year-nitin-gadkari/article30548240.ece

[2] https://sites.ndtv.com/roadsafety/60-of-vehicles-in-india-are-not-insured-and-most-of-these-are-two-wheelers-3027/#:~:text=According%20to%20a%20General%20Insurance,less%20than%20half%E2%80%94were%20insured

[3] https://ncrb.gov.in/sites/default/files/CII%202019%20Volume%203.pd

Pic Credit: Bajaj Allianz General Insurance

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