Car Insurance

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Car Insurance

​Car insurance is a contract between you and an insurance company that protects you against financial loss in the event of an accident or theft. It is a legal requirement in many countries, including India, and a crucial safety net for car owners.​

Types of Car Insurance Policies

Third-Party Liability Insurance

  • Legal Requirement: This is the most basic and legally mandatory type of car insurance.
  • Coverage: Provides financial protection against legal liabilities arising from an accident where you are at fault. It covers:
    • Bodily injury or death of a third party (a person other than the policyholder or their passengers).
    • Property damage to a third party's vehicle or property.
  • Limitation: This policy does not cover any damage to your own car.

Standalone Own Damage (OD) Insurance

  • Coverage: Covers damages to your own vehicle due to accidents, theft, fire, and natural or man-made disasters.
  • Usage: Usually purchased along with a third-party liability policy to extend protection to your own vehicle.

Comprehensive Insurance

  • Coverage: Combines third-party liability and own damage coverage for all-around protection.
  • Benefits: Covers damages to your vehicle, theft, and third-party liabilities. Also includes mandatory personal accident cover for the owner-driver.
  • Add-ons: Can be customized with various add-on covers for enhanced protection.

Key Features and Inclusions

  • Third-Party Liabilities: Covers legal and financial responsibilities for injury, death, or property damage to a third party.
  • Personal Accident Cover (PAC): Provides financial compensation to the owner-driver in case of accidental death or permanent disability. The minimum sum insured is often ₹15 lakh.
  • Own Damage: Protects your vehicle from financial loss due to:
    • Accidents and collisions
    • Theft
    • Natural disasters (floods, earthquakes, cyclones)
    • Man-made disasters (riots, strikes, vandalism, terrorism)
    • Fire, explosion, and self-ignition
  • No Claim Bonus (NCB): A discount on premium for each claim-free year, up to 50% maximum.
  • Insured Declared Value (IDV): The maximum amount payable in case of total loss (theft or irreparable damage). Based on the car’s current market value and depreciation.
  • Cashless Claim Settlement: Allows repairs at network garages without upfront payment; the insurer settles bills directly.
Key Features and Inclusions

Important Add-on Covers

  • Zero Depreciation (Zero-Dep) Cover: Also known as “Bumper-to-Bumper” cover. Ensures full reimbursement for replaced parts without depreciation deductions.
  • Return to Invoice (RTI) Cover: In case of total loss or theft, reimburses the original on-road price of the car (including registration and taxes).
  • Roadside Assistance (RSA): Offers 24/7 breakdown assistance such as towing, flat tire repair, jump-start, and emergency fuel delivery.
  • Engine and Gearbox Protection: Covers engine and gearbox damages, especially useful in flood-prone areas.
  • Consumables Cover: Covers consumable items (engine oil, nuts, bolts, screws) usually excluded from standard coverage.
  • NCB Protection: Lets you retain your No Claim Bonus even after making a claim.

Common Exclusions in Car Insurance

  • Driving without a valid license or with an expired policy.
  • Driving under the influence of alcohol or drugs.
  • Mechanical or electrical breakdowns due to normal wear and tear.
  • Using the vehicle for illegal activities such as racing.
  • Damages occurring outside the geographical coverage area.
  • Consequential losses (e.g., income loss during repairs).
  • Pre-existing damages prior to policy purchase.

Protect Your Car with the Right Motor Policy Plan Today

​With Bimavale.com, you don’t just buy a policy — you gain a trusted partner in your insurance journey. We help you choose the right car insurance, offer unbiased advice, and ensure smooth claim support for complete peace of mind.​

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