Accidents are unfortunate. Sadly, they are also quite common. One never knows when they will happen and cause damages to you and your vehicle or make you financially liable to a third party. As you may already know, these risks can be taken care of with a good motor insurance policy. However, you must have wondered how exactly does a motor insurance policy help in case of an accident? Let us explain how.
Third party liabilities will be taken care of
In an accident, there is a chance that your car or bike may hurt someone else and cause them injuries. An accident may also lead to your vehicle damaging someone else’s property. You may be legally liable to pay for these injuries and damages. In such a scenario, your motor insurance policy can come to your rescue. Regardless of whether it is the mandatory third party bike insurance policy or a comprehensive policy, coverage of third party liabilities are covered by all types of motor policies.
The policy will pay an indefinite amount for the liabilities in case of accidental injuries or death of the third party. In case of property damage, liabilities up to a maximum of Rs 7.5 lakhs can be paid. Furthermore, if the matter of the accident goes to the court, the legal fees for the policyholder are also borne by the insurer under third party coverage.
Personal accident insurance cover takes care of personal injuries
If you own a vehicle, owning a personal accident (PA) insurance plan is also mandatory as per the India Motor Tariff, 2002. This cover can be of immense help to you if an accident leads to severe injuries for you.
The PA insurance plan offers the injured policyholder compensation in case of permanent total and partial disability, temporary total disability, and accidental death. These serious injuries can lead to the injured being bedridden for several months or years at a stretch. While their Mediclaim policy can take care of the treatment expenses, the PA cover acts as an income replacement and provides funds for daily dues. Some PA policies also provide coverage for the insured’s children’s education to a certain extent.
Comprehensive policy takes care of damages to your car
While the third party insurance policy is legally necessary, the comprehensive policy is not. However, it can greatly aid during an accident when it comes to damages to your car. An accident may lead to minor dents on the front of the car or may leave it in a condition which requires severe repair. Paying for these expenses would mean a considerable financial loss. Comprehensive motor insurance policies provide coverage for these expenses – not only during an accident but also in case of damage due to unexpected natural calamities or man-made disasters.
Plus, you can also purchase add-ons with a comprehensive motor insurance policy. An example of a helpful add-on would be zero depreciation add-on: it allows you to receive the full claim amount when you raise a claim for damages without subtracting the depreciation amount from it. This ensures that you barely suffer any losses during an accident.
We hope this article has helped you gain a greater understanding of how your motor insurance policy can help you during an accident.