Car insurance provides policyholders with cover against third-party liabilities, natural calamities, human-made disasters, etc. Therefore, by purchasing a car insurance plan, a policyholder can secure himself/herself from the expenses arising due to unfortunate events like an accident.
In this article, we will explain the different types of damages that car insurance covers.
When an individual purchases a car, it becomes his/her responsibility to provide it with optimum security. Car insurance can be of great help in such a situation. Apart from being a legal obligation, a car insurance plan can safeguard a policyholder from repair costs that may arise due to unforeseen situations. When people buy car insurance, then the insurer provides them with cover against a variety of damages.
Let’s take a look at the types of damages that car insurance covers-
Cover Against Third-Party Liabilities
This cover is extremely helpful in case a policyholder meets with an accident and causes damages to another party. The insurer will cover the cost of repairing the damages. Insurance providers cover third-party bodily injury/death as well as third-party property damage.
Here is how to file a car insurance claim for third-party liabilities-
- If a policyholder receives a legal notice from the third party, then he/she needs to inform the insurer.
- The insured must submit copies of the RC book of the vehicle, the driving license, and the FIR.
- If the claim is legitimate, then the insurer will appoint a lawyer for the case.
- If the court orders the policyholder to pay for the third-party damages, then the insurer will directly pay for the damages.
Cover Against Damages to Own Car
If a policyholder’s car gets damaged in an accident, then the insurer will provide financial assistance to repair the damages. Therefore, it is of utmost importance for every car owner to purchase car insurance to secure himself/herself from the high repair costs.
Car insurance claim process for damages to own car-
- The first thing that the policyholder needs to do is submit a duly filled claim form and necessary documents to the insurer.
- Once a claim is filed, the insurer will appoint a surveyor for the case.
- Then, based on the surveyor’s report, the policyholder can get his/her car repaired.
- Once the repair work is done, the policyholder needs to submit the bills to the surveyor. The surveyor will then submit these bills to the insurer.
- Then, the insurer will reimburse the bills.
Cover Against Theft
Theft is a huge problem that concerns every car owner. But, if you buy four-wheeler insurance, you can get protection against such situation and minimise your loss
The process to file a claim for cover against theft is-
- Inform the police and file an FIR.
- Then, the policyholder needs to submit the FIR copy to the insurer.
- Inform the RTO.
- If the police can’t find the vehicle, then the car owner will receive a no-trace report. The policyholder must submit this report to the insurance company.
- Submit the necessary documents along with the car keys to the insurer.
- Once the process gets over, the insurer will provide the policyholder with the claim amount.
Cover Against Natural and Human-Made Calamities
Apart from providing cover against third-party damages, own car damages, etc., car insurance also offers cover against natural and human-made calamities. A car insurance plan covers natural disasters such as earthquakes, cyclones, lightning, etc. Furthermore, it offers cover against human-made disasters like burglary, riot, strike, etc.
In conclusion, in order to purchase car insurance, an individual needs to spend some money now. However, it can help him/her avoid huge expenses that may arise in the future.