Choose between Third-party and Comprehensive policy?

Policy type

What is the comprehensive policy?

Cars are to be protected completely and hence The comprehensive policy is the best type to save your car. This policy type comprises of both third-party and own damage policy types.

What is a third-party policy type?

The third-party policy is a policy where it is mandatory to have with each driving individual to drive their vehicles safely in the Indian roads and without this policy, there will be a heavy fine awaiting you. So, this policy protects the third-party if your vehicle were to damage their vehicle, property and even them.

For example, if you hit a car without knowing and the other person car is damaged you are liable to them and the third-party insurance protects you and covers the losses incurred due to the damages you made.

But this policy does not apply IDV (Insured Declared Value) and it will be zero. (0)

The benefits of third-party :

  • Protects the third-party vehicle, property and the individual.
  • Mandatory to hold this policy and hence becomes legal to drive in India.
  • Saves more time and effort.
  • Protects you from legal terms and fines.

According to the IRDAI Act, New cars need mandatory third-party damage for 3 years and two-wheelers need a mandatory third-party policy for 5 years and it is compulsory.

What is Own-damage policy type?

Own- damage as the name suggest covers the losses incurred due to the damages caused to your car. The own damage policy covers and protects your car from theft, natural calamities, accidents, fires, etc.

Own damage is not mandatory and can be brought separately but only when they already have a third-party policy as of IRDAI Act, from August 1. Before that own damage was mandatory too.

For example, when you buy a brand new car recently and your insurer provides you with 3 years third-party insurance. After days have passed and worry about protecting your own car too. Instead of waiting for the renewal time, you can buy an OD policy.

By this, we can understand that getting a package of both third-party and own damage which is a comprehensive policy will be exclusively beneficial.

The benefits of buying a comprehensive policy are:

  • Third-party liability.
  • Own damage.
  • Protection from natural calamities.
  • Protection from fire.
  • Car thefts.

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