As per the Motor Vehicles Act, it is mandatory for all vehicles operating in any public space to have a Motor Vehicle Insurance Cover. A policyholder needs to have a ‘Third party liability’ Motor Insurance Cover even when opting for basic insurance plans. This cover is also needed in the event of an accident caused by the vehicle owner or another person.

So, what should one buy, a Comprehensive Cover or a Third Party Cover?

What is Comprehensive Motor Insurance Cover?

As the name suggests, comprehensive car insurance is one of the most preferred types of car insurance policies that cover not only third-party liabilities and losses but also the damages that happen to you and your vehicle. Some of the benefits of comprehensive motor insurance are:

* Covers your Car’s Damages

The major benefit that Comprehensive Car Insurance provides is by providing you coverage from any unfortunate damages and losses that happen due to accidents, fires, collisions, etc. Such coverage will prevent any unforeseen expenses.

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* Third-Party Liabilities Included

A comprehensive Motor Insurance Policy covers you for third-party damages as well. Saves on buying a separate third-party insurance policy while enabling you to comply with the law and prevent third-party liabilities.

* Add-ons can be added for better coverage

There are several Add-ons to extend the coverage your car can receive. For example, Return to invoice cover, Engine and gearbox protection, etc. According to your requirement and preference, you can add on covers.

* Protection Cover from Natural Disasters

Comprehensive car insurance has the feature of protection from damages caused by natural disasters such as flood, cyclone or earthquake, etc. In case the vehicle is damaged by the impact

of the mentioned natural disaster in the policy, these will be compensated.

* Cost-Efficient

A comprehensive car coverage might cost higher than Third-party Insurance cover; however, with the array of benefits and wide coverage, it proves to be much more cost-efficient.

* Compensates in case of Car Theft

Car theft can be the worst nightmare for a vehicle owner. However, if you have a comprehensive plan, then this can help compensate for the loss of the same.

* Avoid Depreciation with Zero Dep Cover

Depreciation begins after you buy a vehicle, and thus the vehicle loses its value over time. However, when you opt for a Zero Dep Cover in a Comprehensive Car Insurance, this can prevent depreciation on its parts and therefore enables you to get more money during claims.

What is Third Party Car Insurance?

It is the most basic policy for your vehicle that will allow you to drive as per the law. The Third Party Insurance only covers damages and losses caused to the third party and does not cover your own

damages. Some of the features of Third Party Car Insurance are:

* Covers Third-Party Liabilities

As the name suggests, it gives protection against third-party liabilities that might occur from damages caused to a third party due to your own car.

* Helps you Drive legally and prevent fines

It is mandatory, per the Motors Vehicle Act, to have third-party insurance cover for any vehicle operating on the road. Thus, having this cover is in line with the law and prevents fines that are levied in its absence.

Having a Third Party Insurance Cover is mandatory by law, and one needs a minimum of this policy to run the vehicle on-road. However, taking a Comprehensive Insurance Cover not only covers this clause as required by the law but also gives coverage for your own damages, gives customisation of your Car’s IDV, provides wider coverage, several add-ons can be attached and much more. Therefore, choosing comprehensive coverage can save the day in several scenarios.

(By Venkatesh Naidu, CEO, Bajaj Capital Insurance Broking Ltd)