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Types of Vehicle Insurance || Third Party Insurance [Full Detail]

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Third Party Insurance
Types of Vehicle Insurance

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What is Vehicle Insurance: How Important it is for you?

In today’s article, we will discuss Vehicle Insurance and how much it is required for you & your Vehicle. Also, we will discuss types of Vehicle Insurance mainly Third Party Insurance. If you have any vehicle like a car, auto, motor, bike then it is very important to have an Insurance. Because, in the event of an accident, we may have to face a lot of problems. Therefore it is equally important to have a vehicle insurance, as much as your own insurance.

What is Vehicle Insurance?

Vehicle insurance prevents us from having an economic loss if we have any kind of accident. This Insurance is done by a contract between the company and you. Under which there is an agreement in which you fill the premium and in return, the insurance company completes the loss in the event of an accident. The auto insurance company provides property, liability (liability) and medical coverage as per the agreement.

Types of Vehicle Insurance

There are mainly Three types of vehicle insurance in India:

(1) Third Party Insurance

(2) Full Party Insurance and

(3) Zero depreciation or cashless car insurance

 

(1) Third Party Insurance:

Third Party Insurance: In this type of insurance, if your vehicle accident occurs and during the accident, there is a loss of the driver of another vehicle, carriage etc., in this situation the Insurance company gives money as the claim for another driver and to another vehicle for damages.

But in the Third Party Insurance, if you or your car breaks down, the company does not give any kind of claim. That’s why it is called Third Party Insurance. And third party insurance is mandatory according to Motor Act.

2. Standard motor insurance:

It is also called Full Party Insurance. In this type of insurance, all kinds of losses, such as the vehicle, driver, and people sitting in the vehicle, even the people of the other vehicle and the breakdown of their vehicle, the Insurance company compensates for the loss.

  • Property Coverage– Any kind of accident, such as a car or auto is stolen or the damage to the vehicle, the Insurance company pays the full amount.
  • Liability Coverage: It covers Legal responsibility such as loss of property and loss due to physical injury.
  • Medical Coverage:  It covers the costs of treatment, rehabilitation, and injuries.

(3) Zero Depreciation or Cashless Car Insurance:

If you have a four-wheeler vehicle then cashless car insurance will be the best for you. It is also called Zero Deprecation Car Insurance. In this type of Insurance, in case of any type of accident, you can repair your vehicle without spending one rupee in any car garages listed by the insurance company.

This process is very fast and easy. This type of insurance has many more advantages. But premium of cashless car insurance is 20% more expensive than other insurance policy. But you get lots of benefits too.

Cashless Car Insurance vs Standard Motor Insurance:

If you have a four wheeler, then I will give you advice for Cashless Car Insurance. Why do because another type of insurance policy takes action on the claim after the accident. Then the company sends the surveyor for investigating the loss of the damaged vehicle. Then the Supervisor determines the amount of the claim.

During this entire process, you lose too much time and then you get the money for that claim. And sometimes the surveyor does not send a complete description of your loss so that you do not get enough amount for your loss.

EXAMPLE: If your loss in the accident is Rs 25000 and during the inspection, if the Surveyor found any one thing which is damaged before the accident not from the accident. In such a case the let us suppose the observer shows the loss of Rs. 15000 to the company. Then you will get only Rs 15000 in the form of a claim. So, here you will have money loss along with the waste of time.

Whereas after making a claim in Cashless Car Insurance, you make your vehicle in the authentic car garages listed by the insurance company. The entire insurance company takes it means the insurance company pays the full cost of repair.

Also, this process is very fast, you save both time and money. Although this policy is a bit expensive from other policy but you get a lot of convenience too.

Friends, I hope I made all your doubts clear. Still, you have any questions related to Car Insurance, Third Party Insurance etc. can write us through the comment section. Also, if you like this information then do share with your friends.

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