Difference between third party insurance and comprehensive insurance


Before you get insurance, it’s vital to find out the distinction between comprehensive and third party insurance. Insurance for your automotive is crucial protection after you drive on the roads. Once your automotive meets with Associate in nursing unfortunate mishap, either caused by you or a 3rd party, insurance is that the cushion to fulfill the expenses for repairing the automotive and obtaining it prepared for the road once more. At Tata AIG, we provide 3 forms of policies: comprehensive automotive policy, standalone, third-party insurance policy and standalone own-damage insurance policy.

Most insurance consumers are confused between the de jure mandated, cheap however limited-coverage third-party cowl and therefore the broad however higher-priced comprehensive insurance cowl. During this article, we are going to assist you perceive the distinction and assist you opt for the policy of your selection.

Comparison between third party and comprehensive insurance:

comparison Comprehensive insurance Standalone third party insurance
Basic coverage Comprehensive insurance protects your automobile associated passengers and also the third-party’s automobile and passengers from money losses incurred thanks to an accident. Standalone third party insurance solely covers the money and legal liabilities arising from a third-party claim. These third-party claims will embrace injury to third-party property and injuries or the death of a 3rd party.
Coverage for own damage Besides damage thanks to associate accident, the policy covers losses thanks to thievery, riots, natural calamities, fire, wrongdoer injury etc for your automobile. It doesn’t cowl own injury however solely injury associated injuries or death of a 3rd party in an accident.
Legal requirement Not necessary Mandatory to drive on Indian roads
Premium computation method The insurance premium relies on the IDV and also the add-ons chosen. You’ll confirm the number from our on-line calculator. It’s fastened associated declared by the IRDAI on an annual basis supported the engine’s boxlike capability.
Premium cost As the coverage is sort of in depth, the premium for a comprehensive insurance policy is on top of a standalone third-party policy however cheaper than 2 separate standalone policies—one for the third party and one for own damage It is one in all the foremost reasonable insurance policies thanks to the restricted coverage offered.


What is Third-Party Insurance?

When your automotive is concerned in Associate in nursing accident caused by you, the third party’s vehicle could also be broken and therefore the driver and passengers within the different automotive could suffer injuries. In such a condition, the third party is eligible to assert the expenses for repairing their vehicle, value of medical treatment and different expenses directly because of the accident.

Legally you’re certain to build the payment for all the on top of for the third party. It’s exactly to assist you manage the money outflows of such circumstances that you simply ought to hold third-party vehicle insurance for your automotive.

In the standalone third-party policy, the insurance firm can reimburse the third party for the injury to their vehicle and injuries to the driving force and passengers of their automotive. It additionally covers the legal liabilities arising from third-party damages. The policy doesn’t cowl any ensuing injury to your vehicle. The motor laws in Asian country specify third party insurance cowl because the basic minimum to drive your automotive on public roads.

What is Comprehensive Insurance?

A comprehensive insurance policy offers the very best level of protection. With this encompassing policy, coverage is accessible for injury to 3rd parties and your own vehicle thanks to accidents. It additionally covers your vehicle for losses thanks to total injury, theft, natural calamities, riots, offender injury etc.

Further, you (the owner-driver) get a private Accident cowl to induce protection against the medical expenses arising from injuries Associate in nursing hospitalization thanks to an accident. This cowl additionally pays out a benefit to the family just in case of your unfortunate ending thanks to a conveyance accident. With a comprehensive automotive policy, you’ll be able to enhance the coverage of your base policy and obtain protection against specific circumstances with multiple add-ons. You’ll be able to select from an inventory of facultative add-ons that your insurance firm offers and embody the relevant ones in your policy. Keep in mind that add-ons are facultative and entail the payment of an extra premium, therefore solely choose those that you simply really want.