Types of motor Insurance Policies


There are three types of Motor insurance policies in India. They are

  1. Comprehensive policy
  2. Third party insurance
  3. Third party insurance plus theft.

Before knowing third party insurance, we should know who are the first two. The first insured person is the owner of the car and the second insured person is insurance company which may cover even re-insurance. Every person other than these two are the third parties. Third party insurance covers car owner’s liability which may arise when it hits any third party causing bodily injury  or death and property damage to a third person. Personal accident cover for the owner if he himself had driven the car at the time of accident. The last category covers the third party insurance and theft only.

Out of the above , minimum required for any car owner is third party insurance without which he will not be allowed to drive the car or if it is breached , he will be held  for defying the  law. Comprehensive insurance covers lot of perils in addition to third party  and also damage or loss to vehicle and its accessories  in the event of fire, riot, theft, floods etc. This policy also pays for towing charges  from the place of accident to the place of workshop upto certain ceiling amount. If extra premium is paid, this towing charges can be increased.

C.R. Venkata Ramani

(AICWA)

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