Considering the rising number of road accidents, the government of India has made third-party motor insurance mandatory under the Motors Vehicle Act 1988. As per this act, it is mandatory to cover a new car with a 3-year third-party insurance policy.
Apart from third-party motor insurance, you can purchase comprehensive insurance for enhanced safety. You might now be wondering if you can switch from a third-party to comprehensive car insurance. Yes, you can upgrade your car insurance policy at the time of renewal.
Let us understand why and how to convert third-party insurance to comprehensive insurance with Reliance General Insurance.
Third-party Car Insurance vs Comprehensive Car Insurance
Understanding the difference between third-party and comprehensive car insurance is crucial to making an informed decision. The points below can help you comprehend why the latter is a better choice for your vehicle.
|
Parametres |
Third-Party Car Insurance |
Comprehensive Car Insurance |
Coverage | Covers injury, property damage and death of a third party due to the insured car. | Covers injury and damages to the insured vehicle along with injury, property damage and death of a third party due to the insured car.
Also covers the insured vehicle against various mishaps like theft and natural/man-made disasters. |
Mandatory | Yes | No |
Price | Relatively lower and fixed by IRDAI. | Relatively higher, may vary depending on the coverage opted for. |
Add-ons Available | Only personal accidental cover may be available with some. insurers | An extensive list of add-ons available. |
Ideal For | Owners of old cars or cars with low market value. | Owners of new, expensive and luxury cars. |
How to Convert Third-Party to Comprehensive Car Insurance?
Converting third-party to comprehensive car insurance is quite simple. All you need is to follow the procedure and submit the required documents.
Here’s a step-by-step guide to follow if you want to switch from Reliance General third-party car insurance to comprehensive car insurance at the time of policy renewal:
Step 1: Visit our official website and navigate to the car insurance page.
Step 2: Provide your car’s details and other personal information in the form.
Step 3: Select the Reliance General Comprehensive Insurance Plan and pick suitable add-ons. Your car insurance premium will be displayed for policy renewal.
Step 4: Proceed with the payment if the premium is acceptable to you.
Step 5: Complete the payment using any of the digital payment options.
Step 6: Once your payment is received, Reliance General Insurance will send your comprehensive car insurance documents to the registered email address.
Things to Consider Before Switching from Third-Party to Comprehensive Car Insurance
Here are a few things you must consider before converting third-party insurance to comprehensive insurance:
Insured Declared Value (IDV)
IDV is your car’s current market value. It is an essential factor to consider while buying a comprehensive policy. It is the highest value of compensation the insurer is liable to pay you in case of your car's theft or damage beyond repair.
Thus the premium is based on your car’s IDV. The policy cost will be higher if you have a new or expensive vehicle and lower in the case of an old car. So, choose the correct IDV to avail of optimum compensation in the worst-case scenario.
Compare Policies
It is essential to compare different insurance providers before deciding. You can compare them in terms of coverage options, claim settlement ratio, the network of cashless garages, add-on covers, etc. online.
Coverage
Next comes coverage. Make sure you choose the right coverage while upgrading your policy. New and expensive cars may need more protection. Consider buying add-on covers for increased safety.
At Reliance General, you can pick from a long list of riders like nil depreciation cover, engine protection cover, roadside assistance, etc. It is advised to analyse your car’s needs before buying add-on covers since they can increase your policy premium.
Wrapping Up
Car insurance is an excellent tool to secure yourself against unexpected liabilities. Now that you know how to convert 3rd party car insurance to comprehensive insurance, ensure you analyse all important factors to make a wise decision.
A
third-party car insurance is mandated by law and is an ideal fit for old cars with a lower market value. A basic car insurance plan with minimum coverage might be sufficient for such cars.
On the other hand, you can consider buying
comprehensive car insurance for enhanced protection. This is especially important if you own a new or high-value car or you live in an area prone to theft and other incidents.
With Reliance General Insurance
car insurance, you can decide the kind of coverage you want for the policy premium that comfortably fits within your budget. Our car insurance plans come with great features like 24*7 customer support, paperless buying and renewal process and a wide network of cashless garages.
You can also enjoy discounts of up to 80% on premiums of policies purchased online. So, don’t wait, upgrade your car insurance policy today to drive worry-free on the roads!
Frequently Asked Questions
Is third-party insurance good or bad?
Third-party insurance is an efficient way to tackle financial and legal liabilities if you accidentally injure a third party or damage their property while driving. It is suitable for older cars with low market value. However, experts suggest buying a comprehensive policy for your vehicle protection against multiple risks.
What are the exclusions under comprehensive insurance?
While comprehensive insurance covers a range of risks, it excludes the following:
General wear and tear.
Damages incurred while driving under the influence of drugs or alcohol.
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Damages incurred while driving outside specified geographical locations.
Driving without a driver’s licence.
Electrical or mechanical breakdown.
Damage to tyres and tubes, etc.
What are the add-ons under comprehensive insurance?
A few add-on covers provided by Reliance General Insurance include:
Zero depreciation cover
Roadside assistance
No Claim Bonus (NCB) retention cover
Engine protection cover
Total cover
Tyre protection cover
Daily expense reimbursement cover
Consumables cover
Key protect cover
Electronic/electrical accessories cover