The Motor Vehicles Act 1988, makes it compulsory for all vehicles to run on the road only after having a valid insurance. A motor vehicle insurance safeguards the rider against any damage or even loss of life in the event of an accident. It also covers the vehicle owner’s risk against any third party loss of life, property or physical injuries.
There are mainly two types of insurance policies that insurers generally offer to the vehicle owners - Comprehensive insurance, and Third party insurance.
A third party insurance can be availed at a lower rate of premium than a comprehensive insurance, but it works only for the third person involved in the accident.The vehicle owner and his vehicle is not covered by third party insurance. On the other hand, a comprehensive insurance covers the vehicle owner’s all losses and damages cause in the event of an accident, it also accounts for his death in any unfortunate circumstances. It also covers death or injuries caused to the third party and also damages to property suffered by the third party.
The wide-ranging benefits of comprehensive vehicle insurance are as follows:
Safeguard against damage to vehicle in the case of an accident
Maintenance and restoring a vehicle is a costly task, and often it can dig a deep hole in the wallet. If in an accident the vehicle is partially or fully damaged, the comprehensive insurance covers all the expenses to restore the vehicle to its normal condition.
Safeguard against injuries to rider
If the rider happens to suffer some injuries while riding the vehicle, his medical expenses would be covered by the insurer if the vehicle is insured under a comprehensive cover. With the increased automobile density in metro cities, chances of meeting with an accident are high. Insurance is like a life jacket in a turbulent sea.
Backup against temporary non-functioning of limbs
A huge medical expense may be imminent if the rider in an accident suffers severe injuries, resulting in temporary non-functioning of limbs or bodily parts. The medical bills and other expenses are likely to be covered if the vehicle is fully insured before the accident.
Backup against permanent nonfunctioning of limbs
If an accident results in permanent nonfunctioning of limbs, it can deal a severe blow to the person’s life and could wipe out all his savings on account of medical treatment. The huge medical expenses could prove to be a drain on financial resources of the victim if the vehicle is not insured.
Safeguard against death
When an accident results in the death of the rider, it could be a huge blow to the family of the deceased if the person is the sole bread earner for the family. At such a critical juncture, , the comprehensive cover provides monetary compensation on the death of the earning member of the family.
Safeguard against damage to property and death or injury to the third party
If the accident has resulted in the loss of property of a third party, or death or injuries to the third person, the insurer would cover the expenses of the losses incurred as well.
Thus, it is advisable to go for a comprehensive insurance cover, as it covers the entire range of damages and losses the insured is liable to suffer in case of an accident, while the third party insurance covers only the losses suffered by the third party involved in the accident.