Vehicle owners must have car insurance as it offers protection from financial loss due to unforeseeable events on the road. When it comes to car insurance policies, two common types are own damage insurance and third-party insurance. In this article, we will explore the dissimilarities between own damage and third-party car insurance policies, shedding light on their coverage, benefits, and the scenarios in which they come into play. *
What Is Third-Party Car Insurance?
According to the Motor Vehicles Act, every car owner must obtain a third-party insurance policy. This car insurance policy protects the policyholder from unintentional harm caused by the insured vehicle to third parties. It covers third-party liabilities such as third-party property losses, third-party fatalities, or third-party physical injuries resulting from an accident with the insured vehicle. In the event of passing away, third-party auto insurance offers unlimited reimbursement. For property damages to third parties, the compensation is capped at Rs. 7.5 lakh.
In conclusion, third-party insurance protects from the following:
- Property harm to third parties
- Passing of a third party
- Physical harm to a third party
However, this policy does not cover losses incurred by the covered vehicle as a result of any unforeseen circumstances. A car owner must buy standalone damage insurance or a comprehensive car insurance policy. *
A Standalone Own Damage Car Insurance Policy: What Is It?
Another common form of automobile insurance that Indian insurance firms offer is standalone own-damage coverage. Own damage car insurance compensates for any personal losses incurred by the covered vehicle due to an accident, earthquake, theft, riot, fire, etc. You can only buy this coverage if you already possess a third-party liability car insurance policy. *
A car owner should consider purchasing comprehensive motor insurance coverage to cover their personal losses and third-party liabilities under one policy.
A personal damage automobile insurance policy’s protection can also be increased by adding other covers for an additional fee. Zero depreciation cover, NCB cover, roadside assistance cover, tyre protection cover, etc., are a few of these add-ons. *
Difference Between Third-Party Car Insurance And Own Damage
Let us now comprehend the difference between own damage and third-party insurance:
|Point of Difference||Own Damage Car Insurance||Third-Party Car Insurance|
|Coverage||Provides protection for a four-wheeler against damages caused by theft, accidents, natural disasters, etc.||Provides protection from any third-party liability resulting from the insured vehicle.|
|Compulsion||According to Indian motor law, own damage cover is not required insurance.||In order to lawfully drive on Indian roads, you must have third-party liability insurance|
|Exclusions||Third-party liabilities are excluded.||The insured vehicle’s own damages are not covered by third-party insurance|
|Standalone Purchase||It is not possible to buy an individual damage cover separately. It can only be purchased together with third-party liability insurance or under comprehensive auto insurance||Even though third-party auto insurance is required, automobile owners can still buy it independently|
|Customisation||By adding extra covers, an own damage motor insurance policy can be made unique||As it only covers third-party damages, third-party liability auto insurance cannot be tailored with add-ons|
|Validity||Own damage insurance typically has a one-year expiration date after which it must be renewed||It is required to get 3-year bundled third-party auto insurance for new cars. Alternatively, you could choose liability-only coverage for a year|
Insurance for other parties and your own damages are very different from one another. The latter can be acquired to extend the insurance coverage according to the needs of the car owner, whereas the first is required protection. To make a well-informed buy, you must know the differences between the two plans. In addition, you can compare the plans of several auto insurers to choose the ideal vehicle insurance for your four-wheeler.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.