You probably know that in order to drive a vehicle on road in India, you should have a liability only motor insurance or comprehensive insurance; it is imposed by Law. There are basically two types of motor insurance or vehicle insurance exist in India; Liability only Policy and Package or Comprehensive Policy. Liability insurance policy covers your legal liability towards third parties for injury, death or property damage; and also provides accidental coverage to driver against death or injury. On the other hand, a package policy or comprehensive policy provides a high level of protection for example; it also pays for the damages to insured vehicle due to an accident.
A great many people pay from their own pocket for damages to their vehicles; even though, they have valid motor insurance policies. Perhaps, they do so, just because of lack of knowledge or they don’t have enough time to wait for claims settlements. Though, we can’t do anything for people; belong to second reason (don’t have sufficient time for claim settlement), but we can certainly help those people who belong to first reason (lack of knowledge) by spreading awareness among them. In this post, we will be discussing on what does your motor insurance policy cover and doesn’t cover?

Third Party Only Insurance
Third Party Liability Only Insurance Policy Features:
- Damage to third Party Property
- Death or bodily injury to third party
- Personal Accidental cover for owner/driver against accidental death or permanent disability ( Not for temporary injury or disability)
Third Party Liability Only Insurance Policy Exclusions:
- Intentional self-injury or suicide
- Accident under the influence of drugs or liquor
- Liabilities that may arise from nuclear weapon materials
- If driver does not have a valid driving license
- If vehicle is used for unlawful purposes
- Electrical/Mechanical Breakdowns
Package Policy or Comprehensive Policy
Features of Package Policy or Comprehensive Policy:
- Accident due to an external cause
- Damage to third party vehicle
- Damage to third party’s property
- Damage to insured vehicle due to natural calamities like; earthquakes, storms, floods, cyclone etc
- Theft/Burglary/House Braking
- Damage or loss to vehicle due to fire, self-ignorance, explosion, riots, terrorist acts etc
Exclusions in Package Policy or Comprehensive Policy:
- Normal wear and tear due to age of a vehicle
- Insurance companies do not pay any type of claim if the driver does not have a valid driving license
- Depreciations are applicable on insured vehicle
- Electrical/Mechanical Breakdowns
- If the vehicle is used for unlawful activities
- Intentional self-injury or suicide
- Accident under the influence of drugs or liquor
- Liabilities that may arise from nuclear weapon materials