1. Third-party Liability component
This is the compulsory aspect of policy. The Motor Vehicles Act, 1988 makes it mandatory for all four-wheelers on Indian roads to be insured under a basic, third-party liability policy. This policy insures you against financial trouble in case your insured car damages someone’s property or injures someone. You can get a detailed view about the inclusions and exclusions of this cover in your policy document.
2. Personal Accident Cover for Owner-Driver
You must go through this section to avoid any confusion regarding the claim amount involved and the injuries covered under this policy. This section contains a table explaining the nature of the injury and the corresponding scale of compensation.
3. Comprehensive coverage
Own damage component is a crucial aspect of a comprehensive plan. Details related to own damage are clearly mentioned under this section. Such a section is often titled as ‘Loss of or damage to the vehicle insured’. While raising a claim, you have to verify if the event due to which your car was damaged (for example – rioting) is covered in the list of inclusions or not. The insurance company will reject your claim if the claim is raised for an event not mentioned in the policy or is a part of the exclusions.
Zero Depreciation
Zero depreciation also known as Nil depreciation or Bumper to Bumper car insurance is a car insurance policy that leaves out the depreciation factor from the coverage, thus giving you complete cover. It means that if your car gets damaged following a collision, no depreciation is subtracted from the coverage of wearing out of any body parts of car excluding tyres and batteries. The insurance company will pay out the entire cost of the body part for replacement.
Zero depreciation car insurance policy offers 100% coverage for all fibre, rubber and metal parts without deduction of depreciation. It does not cover engine damage due to water ingression or oil leakage. Any mechanical breakdown, oil change or consumables are also not covered in this policy. The policy comes with a limit on the number of claims you can put in a year.
Zero depreciation costs anywhere between 15-20% of the standard premium and is a MUST BUY for all new or relatively new (up to 5 years) cars.
Zero depreciation car insurance proves to be beneficial to:
People with new cars
People with luxury cars
New / Inexperienced drivers
People living in accident-prone areas
If you worry about small bumps and dents
If you have a car with expensive spare parts