Third-Party Car Insurance with Fire & Theft Coverage

Unfortunately, these days, there are more and more ways in which our vehicles might be at risk from fire. Whether it is the result of an accident, due to mechanical problems, a garage fire, or even vandalism, fires can cause a lot of damage.

But the question is, will your third-party car insurance help you out in such a situation? The answer to this is that some types of car insurance policies cover against fire damages while others don’t. Let us take a look.

While a regular third-party policy does not cover damages to your own car, such as fire damages (it only protects you from losses if your vehicle were to damage any third-party person or property), Digit also offers a package policy that provides additional coverage only in the case of fire damages to your car.

Thus, this package policy will give you a third-party policy with the added benefit of fire cover for your own car.

What is Third-Party Cover in Car Insurance?

Third-party coverage in car insurance (also called liability coverage) is there to protect you against any losses you may face due to any bodily injury, or death to a third-party (i.e. some esle), or even any damage to their vehicle or property. Since it is also mandatory by law, it protects you from traffic fines.

What are Fire Damages in Car Insurance?

In car insurance, “fire damages” usually refer to any losses or damages to your vehicle because of an accidental fire. This includes external damage (like to the body of the car) and internal damage (for example, any damage to the wiring or electrical fittings).

As the name suggests, a third-party car insurance will only protect you from damages and losses caused to a third-party, while a fire cover will protect you against fire damage to your car.

1. Covers for Third-Party Liabilities

The main purpose of a third-party car insurance is to protect you from third-party liabilities such as:

• Personal Damage to Third Party – In case your car causes any physical injuries and in the worst case, death to a third-party person. This covers all the expenses and losses that may arise due to the same.
• Damages to Third-Party Property/Vehicle – If your car accidentally damages someone else’s vehicle, house, or property, this provides coverage for the same up to 7.5 lakhs.
• Personal Damage to Owner/Driver – For those who don’t have a Personal Accident Cover, this will protect you from losses that could arise if you are physically injured due to an accident.

2. Coverage for Fire Damages

Damages and losses caused to your car due to an accidental fire are covered, including:

• Accidents and Collisions – If the fire is caused during a motor accident or collision.
• Natural Disasters – Where the fire is a result of a natural disaster, like an earthquake, tornado, etc.
• House Fires – If the fire that damages your car is a result of a house fire or a garage fire.
• Criminal Acts – In cases where the car is set on fire by a criminal act like vandalism or arson.
• Riots – When your car is set on fire during the course of a riot

There are some situations that will not be covered under this type of car insurance:

• Own damage to your car apart from fire damages won’t be covered
• Bodily injury to the passengers in the vehicle
• If you were driving without a valid driving license at the time of the incident
• If you were driving under the influence of alcohol or drugs
• When the damages or incidents occur outside the geographical area of the policy
• In cases where the accident or fire was caused by your own negligence or on purpose
• Fire damages that are caused by mechanical defects like short-circuiting, overheating, oil leakage, etc.

This type of car insurance policy which covers third-party with fire cover, is best for those who think that their cat is at lower risk from other damages (like theft or other natural calamities), such as people who don’t use their cars a lot. Additionally, it is also a good idea for those who want lower premiums but want more coverage than just a third-party policy. 

Since having at least a third-party car insurance is mandatory under the Motor Vehicles Act, having this policy will also enable you to drive legally while protecting you from some unexpected losses. 

However, for those who would prefer more own damage benefits, you should consider getting an Own Damage policy or a Comprehensive Policy, both of which also cover any damages due to fires (as well as things like accidents and collisions, natural calamities, and thefts).