Comprehensive Insurance vs Third Party Insurance

Understand the difference between comprehensive insurance and third-party motor insurance in a nutshell. The difference can be distinguished by the coverage provided. The prime difference is that third-party vehicle insurance provides you financial coverage against any damage or loss caused to a third-party. whereas, comprehensive insurance not only covers third-party liabilities but also offers coverage for the owner’s loss or damages.

Let us understand both policy types in detail to give you a better understanding

What is a Comprehensive Motor Insurance policy?

A comprehensive motor insurance policy provides complete coverage of the owner, his vehicle, and even the third-party involved.

Benefits of a comprehensive motor insurance policy

1.) Protects your vehicle

It protects against damages caused to your vehicle due to:

Accident
Fire
Earthquake
Floods
Theft/burglary
Windshield wreckage
Damage caused by an animal
Damage caused by fallen objects
Damage against storms, cyclones or , windstorm

2.) Covers third-party Vehicles: This policy also covers third-party liabilities. Bodily harm or injuries caused to the third party are covered.

3.) Value for money: It is a value for money policy for its extensive coverage.

4.) Customization: in a comprehensive policy you can customize your car insurance policy according to your needs and requirements by opting for various add-on covers.

5.) Personal accident cover: It comes with an inbuilt personal accident cover.

Exclusions

Here are few points that are excluded in a comprehensive car insurance policy

1.) Driving without a license: The policyholder will get their claim rejected if they were driving without a license during the event of a mishap.

2.) Drink and drive: Any loss or damages claimed by the policyholder under the influence of alcohol or intoxicants will be dismissed.

3.) Deliberate negligence: Any claims found to be made by deliberately damaging the car will be rejected.

4.) Valid license: Any claims made while carrying a learner’s license will not be accepted.

5.) Nuclear war: Any damages or loss caused due to a nuclear warhead or mutiny will not be covered.

6.) Mechanical & electrical damage: Any damage to the mechanical and electrical system of the vehicle will not be covered.

Third-Party car insurance policy

What is Third-party liability vehicle insurance?

A third-party liability vehicle insurance is the most basic and mandatory form of car insurance. It is mandated to have at least a third-party vehicle insurance policy as per the Motor Vehicles Act 1988.
As the name suggests, this policy provides financial coverage against third-party liabilities only.

Benefits of a third-party liability car insurance policy

1.) Covers third-party liabilities: As mentioned earlier, it protects the interests of the third-party that is involved in the accident. Any court-ordered compensation will be paid to the third-party by the insurance company.

2.) Covers death or injury: Provides financial compensation to the third-party in case of death or disability.

3.) It is mandatory: As per The Motor Vehicles Act 1988, it is mandatory to have a third liability car insurance policy. It is illegal to drive on Indian roads without it.

Exclusions under third-party liability motor insurance

1.) Own damages: Damages caused to your own vehicle will not be covered under third-party motor insurance.

2.) Drinking and driving: Any claims made under the influence of alcohol or intoxicants will be rejected

3.) Driving without a license: Any claims made while driving without a driving license will not be accepted.

Which policy should you opt for?

It is always advisable to opt for a comprehensive motor insurance policy as it provides complete 360- degree protection. Although not necessary, opting for a comprehensive motor insurance can save you a lot of hassle in the future.