As a first-time insurance buyer, you need to acquaint yourself with the basics about insurance plans. These basics will help you make a smart choice of insurance cover that is suited as per your requirements.
Every car owner is mandatorily required to purchase at least a third-party cover. While it may sometimes limit its scope, a comprehensive policy makes up for the shortcomings of a third-party cover. The coverage under a comprehensive plan may differ slightly among different insurance companies.
If you are looking to buy car insurance online, here are various terminologies that you need to be familiar with; own damage cover being one among them. Let us understand it in detail.
What is own-damage cover?
Comprehensive car insurance plans have a component of own-damage along with third party car insurance coverage. Understanding own-damage can be simplified once you know what is covered under a third-party policy.
Third-party policy: A third party car insurance is a minimum requirement when you buy car insurance online or offline. The Motor Vehicles Act makes it mandatory by law to have a third-party insurance cover. This policy coverage includes protection to you against claims made by a third person for damage to property or injury during an accident. Apart from it, there is also the inclusion of a personal accident cover up to ₹15 lakhs.
Comprehensive policy: The limitations of a third-party policy are overcome using a comprehensive plan that includes third-party coverage, personal accident coverage along with own-damage cover. Thus, any damage caused to your vehicle including any injuries to you can be insured using a comprehensive plan.
What is included in own-damage cover?
The damage that can be caused to your car is not limited to accidents. Here is a list of different cases that are included under own-damage cover.
Damage due to fire: Damages to your vehicle can be caused due to fire. It can result from a mechanical or electrical failure resulting in your car burning to flames. In such cases, a comprehensive policy that offers own-damage cover is advisable.
Damage due to natural perils: Natural calamities are known to all that cause vast destruction of property and human life. A comprehensive policy can help you avail an insurance cover against these perils of nature like earthquakes, floods, cyclones, landslides, hail storms etc.
Man-made events: Own-damage coverage is not limited to natural perils, but also man-made events that result in damage and destruction of property. Riots, vandalism, lockouts, are some events that are commonly included in your own-damage cover.
Theft: Theft is no kind of damage to your car but is a financial loss. Thus, the event of theft is also included in your policy coverage. But the theft of your vehicle due to carelessness on your part may not fetch any compensation.
Now that you know the events that form part of own-damage cover, it is necessary to select a policy with the right coverage. At these times, it is useful to compare car insurance plans before buying them. This way you can select a policy that suits your requirements ensuring the safety of your vehicle.