Private Car Package Policy: Insurance Coverage, and Benefits
A private car insurance policy is a comprehensive insurance plan for privately ownedRead more
What is Private Car Insurance?
Private car insurance, also known as a private car package policy, is coverage for cars that are used for private purposes. This type of motor policy offers financial protection to car owners against repair costs that may arise from accidents, natural calamities, theft, fire, or other covered events. It also covers third-party liabilities such as death, injury or property damage of the third party caused due to an accident involving the insured car.
While a private car insurance policy is not mandatory under Indian motor laws, it is highly recommended because of its broader protection.
What is Covered Under a Private Car Insurance Policy?
A private car insurance policy covers the following events:
- Manmade Acts: Any damage to the insured car caused due to manmade acts, like strikes, riots, vandalism, etc., are covered in a private car package policy
- Natural Calamities: Damages arising out of natural calamities like earthquakes, floods, hurricanes, floods, rockslides, etc. are also included in a private car policy
- Third Party Liabilities: Third-party losses such as death, injury and third party property damages are covered
- External Damages: Any damage arising out of external means, like a road accident or collision, is covered under a car insurance policy
- Theft: If your car suffers a partial or total loss due to theft or burglary, then such losses will be covered under your private motor insurance policy.
- Fire: Any loss or damages sustained due to self-ignition, fire or explosion is also covered
- In-transit Damages: Damages to the insured car while it was in transit via waterways land and air are covered
What is Not Covered Under a Private Car Insurance Policy?
There are certain damages that are not covered under a private car package policy. These exclusions are:
| Exclusion |
Details |
| Breakdown |
Mechanical or electrical faults not resulting from a covered event |
| Wear and Tear |
Gradual deterioration due to regular use and ageing |
| Driving Without a Valid Licence |
Claims are rejected if the driver lacks a valid licence |
| Drunk Driving |
Damages when driving under the influence of alcohol or drugs |
| Commercial Use |
Losses when a private car is used for commercial purposes |
| Outside Geographical Area |
Incidents occurring outside the policy's geographical limits |
| Consequential Losses |
Losses from continued use or negligence after damage |
| Contractual Liabilities |
Liabilities arising from contractual obligations rather than insured events |
How Can You Enhance Private Car Package Policy Coverage?
You can enhance the coverage of a private car policy by purchasing add-on covers for an additional premium amount. Some of the most useful add-ons in car insurance include:
- Zero depreciation cover
- 24x7 Roadside assistance
- Engine protection cover
- Return to invoice cover
- NCB protection cover
- Loss of personal belongings
Consumables cover These add-on covers are optional, and are sold by most car insurance companies in India.
Should You Buy a Private Car Package Policy?
A private car package policy is recommended for comprehensive financial protection for your car and third-party liabilities under a single plan. You should consider buying this policy if:
- You own a brand-new or expensive car
- You need protection against theft, accidents, fire, natural or man-made disasters
- You want to customise your policy coverage with add-on covers
- You need broader financial protection than a basic third-party policy
Wrapping Up!
Choosing a private car insurance policy depends on your vehicle, budget, and coverage needs. Before buying a policy, compare plans online from different insurers. Take time to review the add-on covers, claim settlement ratios, and policy terms. This will help you choose the right level of financial protection at a suitable premium.
