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What is a Comprehensive Insurance Policy for Motor Vehicles?

Driving a vehicle is about comfort and convenience, but at times, driving a car or a bike on the road can lead us to unexpected accidents. Thus, it is important to secure your vehicle against unforeseen events with Comprehensive Motor Insurance in India – an insurance policy that goes beyond the mandatory third-party cover.

So, know everything about comprehensive auto insurance policy to choose the right cover today and drive worry-free tomorrow.

Table of Contents

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What is Comprehensive Insurance Meaning?

Comprehensive motor insurance or first party motor insurance is an all-inclusive vehicle insurance policy that covers both third-party insurance and own damage cover.  

Thus, comprehensive insurance definition is that it is an insurance policy which financially safeguards the policyholder against accidental damage or unforeseen losses due to an accident, natural calamity, fire or theft, to the own vehicle as well as third party (for bodily injury or property damage).

Thus, to define comprehensive insurance simply, it is an assurance of protection of:

a) The vehicle’s own damage

b) Liability of any third party involved in the accident.

For any mishap, the insurance company is liable to settle the claim for repairs unless it is a compensation in the event of death. In the event of death due to a road accident, the nominee of an individual will be indemnified by MACT.  The Comprehensive Cover is the maximum cover one can purchase for their vehicle.

Why Should You Buy a Comprehensive Policy?

Get a comprehensive insurance policy as it is way more effective than a third-party motor insurance policy. Following are more benefits of getting a comprehensive bike insurance plan:

Covers Own Damage of the Vehicle

A comprehensive policy covers the vehicle for its own damage arising out of disastrous incidences. For example, if you happen to hit your car with a tree in the middle of the road. So, in this case, a comprehensive car insurance policy will get it fixed for you.

Covers Third-Party Liability

It will also cover the third-party liability expenses incurred due to bodily injury and property damage to someone else in an accident caused by the insured vehicle. Imagine while driving on the highway you lost control of your car and hit a man crossing the road, leaving him injured. In such a case, third-party car insurance will help you.

Offers Provision of Add-on Covers

A comprehensive motor insurance plan allows you to buy add-on covers for enhanced protection, a feature which is not available under other types of motor insurance plans. For example, you can buy various add-on covers available with comprehensive bike insurance policy.

Covers you Legally

Since a comprehensive insurance policy already includes and covers third-party liabilities, it ensured that you could drive legally in India, as at least a third-party insurance is required to drive on Indian roads.

Peace of Mind

Knowing that you're covered with a comprehensive vehicle insurance policy allows you to drive your vehicle with peace of mind as you won’t have to worry about the financial burdens that might arise due to unforeseen accidents.

What’s Covered in Comprehensive Vehicle Insurance?

Here’s what all is covered under a comprehensive vehicle insurance policy:

Damage Due to Accidents

Even the tiniest accidents can lead to much trouble, which is why you need a comprehensive plan that covers you and your vehicle during all unfortunate accidents.

Personal Injuries/Death

Unfortunate events and accidents can lead to some serious injuries while some may even be fatal! This is why a comprehensive policy covers owner/driver financially for the same; however, you need to have a Personal Accident cover which is mandatory by law in India.

Vehicle Thefts

Your vehicle may be lost, stolen or damaged beyond repair despite maintaining all security. The comprehensive insurance will compensate for the same, based on your car and policy’s sum insured! 😊

Third-Party Liabilities

Stop blaming strangers for minor and major accidents as your comprehensive insurance will take care of everything, i.e. when a person, a vehicle or a property is hurt or damaged due to your vehicle.

Damages due to Natural Disasters

Various natural calamities can harm your two/four-wheelers, leaving them of no use. Thus, a comprehensive insurance policy will provide the cost of repairs and loss in such cases.

Damages Caused in a Fire

Even a small fire can lead to major damage to your vehicle or its parts! But you don’t need to worry as comprehensive motor insurance ensures you don’t need to bear the brunt of it.

What’s Not Covered?

Though a comprehensive policy offers complete protection but here are some exceptions:

Drunk Driving

Any claims made in a situation where you were driving drunk or under the influence of any drug won’t be considered.

Driving without a License

If in case of an accident, you were found driving without a valid driver’s license, you won’t be liable to make any claims under this plan.

Add-ons Not Bought

If you haven’t bought a particular add-on cover you can’t file a claim for its corresponding benefits!

Consequential Damages

Consequential damage is the damage caused to your vehicle after the accident has occurred. Unless covered for in an add-on, such damages can’t be covered.

Contributory Negligence

In simple words, you can’t file a claim for things that are not recommended as per the manufacturer’s driving manual! For example, if there is a flood in your city, don’t take the risk and take your vehicle out, as any damage caused as a result will not be covered!

Driving Without a Valid License Holder

In case you don’t have a valid driving license or have a learner’s license, you should be driving with a valid license holder beside you; else the insurance won’t cover you.

Add-on Covers Available with Comprehensive Insurance

Get better coverage for your vehicle with these add-on covers available with Comprehensive Motor Insurance policy.

Zero Depreciation Cover

If your car is less than 5 years old, get Zero Dep cover to avoid paying for the cost of depreciation during your motor insurance claims.

Roadside Assistance

We all need a little help sometimes! That’s why there is Breakdown Assistance cover to help you out in situations where your vehicle may break down, leaving you stranded in the middle of the road.

Tyre Protect cover

The tyre protect add-on cover reimburses the cost of replacing damaged tyres with equivalent or near equivalent to the one being used in the vehicle, given the vehicle is fitted with run flat technology.

Engine & Gearbox Protection

In case of consequential damage to your vehicle’s engine or gearbox, the Engine & Gearbox Protection add-on covers your engine and gearbox against the repair charges.

Return to Invoice Cover

Return to Invoice add-on gives you back the complete value of your vehicle’s invoice value in case your vehicle is stolen or damaged beyond repair. It will cover the costs of getting you the same, or similar car/bike- including the road tax and registration fees.

Consumable Cover

Consumable cover protects your vehicle’s nitty-gritties such as engine oils, screws, nuts and more, regardless of any accidents.

Passenger Cover

By paying an additional premium, the Passenger cover protects the passengers riding along with the driver in the insured vehicle. 

Daily Conveyance benefit

The daily conveyance benefit compensates for your transportation cost incurred when your vehicle is under repair. The compensation may be provided as a fixed allowance per day or coupons from taxi operators of an amount equal to per day fixed allowance.

Pay As You Drive Cover

Pay As You Dive cover gives you a discount on your own damage premium if you drive less than 10,000 km/year.

EV Shield Add-on cover

There is also a specialized EV Shield add-on cover for electric car and bike offered by Digit Insurance that protects you and your electric vehicle against any loss or damage to the electrical panel for the vehicle charging point, vehicle charger including charging cable, and offer roadside assistance services specific to EVs.

Difference Between Comprehensive and Third-Party Insurance

Unlike third-party liability insurance, it is not mandatory to buy comprehensive insurance. You can opt to buy comprehensive insurance cover if you wish to enhance protection. 

So, here is the difference between comprehensive and third-party insurance to help you make the right choice.

Parameters Comprehensive Insurance Third Party Liability Insurance
Coverage  It provides coverage for your own damage and third-party liability for bodily injury or property damage.  The cover provides protection against any liability which may arise due to third party bodily injury or property damage only. 
Add-ons  You can buy add-ons under the comprehensive policy to enhance your protection.  Third-party policy does not allow you to opt for any add-ons. 
Suitable for  Comprehensive insurance is the most suitable for people with new or luxurious vehicles, or who need complete coverage along with add-ons.  Third-party insurance is the best for those looking for a budget policy or who rarely drive their vehicle, or if the vehicle is too old. 
Cost of Insurance  Comprehensive cover is expensive as it offers wider protection against injuries, damage, and theft.  A third-party liability insurance is cheaper in comparison to that of comprehensive cover. 
Premium Price  The comprehensive insurance premium price is variable as it depends on the rates and discounts offered by different insurers.  The third-party insurance premium price is fixed by IRDAI for different types of vehicles. 

How to Buy Comprehensive Motor Insurance Online with Digit?

Step 1

Go to Digit’s app or website, enter your vehicle’s registration number and provide other details as required.

Step 2

Choose the comprehensive plan and purchase the add-ons, if required.

Step 3

Enter your personal, nominee and vehicle details.

Step 4

Complete the payment and mandatory KYC verification process.

Step 5

You’re done! You’ll receive the policy document via email, SMS and WhatsApp.

Documents Required to Buy Comprehensive Policy Online

To buy comprehensive insurance online, you need to furnish the following documents:

  • Car/Bike Registration Certificate  

  • Previous year comprehensive insurance policy, if applicable 

  • Any of these documents for KYC verification - PAN/Aadhar/DL/Voter id/Form 16/Passport 

How to File a Claim?

To file a claim against comprehensive insurance online, follow these steps:

Step 1

Inform your insurer as soon as possible either by calling them or dropping an email.

Step 2

Keep your details handy such as policy number, location of the accident, date and time of the accident, and contact number of the insured/caller to make the process easier.

Step 3

Present the required documents required to file the claim and wait for the insurers to verify the details. Upon verifying, your claim will be processed.

Who Should Buy Comprehensive Insurance?

New Vehicle Owner

If you’ve bought a new vehicle by spending so much money, you would want it to safeguard it completely for your peace of mind. This is why new vehicle owners should go for comprehensive cover, as it is the best insurance policy that offers wide coverage.

Luxurious Vehicle Owner

If you own a stunning Mercedes or Audi or a luxury bike that has a high market value, your responsibility of protecting the vehicle increases. So, you should opt for a comprehensive insurance plan that will protect your vehicle in every situation.

The One Who Frequently Go on Road Trips

If you love to take the country down by road every now and then, make comprehensive motor insurance your best friend. It will protect you from unexpected losses while you make memories. Additionally, you can also opt for specific add-ons to protect you throughout your drive.

The One Who Lives in the Big Bustling City

Taking your vehicle out for a ride in bigger or metro cities where you are more prone to accidents, calls for enhanced coverage which is provided by a comprehensive vehicle insurance plan.

The Possessive Vehicle Owners

If you are someone who loves their bike or car more than anything, even a small scratch to it can hurt you! So, if you’re possessive about anything happening to your vehicle, go for comprehensive insurance as it covers damage to your own bike as well!

The Risky Drivers

Clumsy or risky drivers who are more prone to little accidents and mishaps than the others should get comprehensive insurance as it will protect you, your vehicle, and third-party liabilities in all the risky situations!

Things to Know Before Buying Comprehensive Motor Insurance

Making an informed decision while choosing the right comprehensive insurance is important as it will provide the right coverage for your vehicle. So, here are some things you must consider:

  • Assess Your Requirements 

Before buying comprehensive motor insurance it is important to assess your individual requirements such the age of your vehicle, how much it will be used, how much coverage you need, your budget, where you will be driving it, and more. Based on these factors determine the type and coverage that best suits you.

  •  Compare

Always research and compare comprehensive insurance quotes online from different insurers before buying the policy to get the best plan. Also, check different insurers' claim ratio to make an informed decision. 

  • Get the Right IDV

IDV is essential as it determines the premium of comprehensive motor insurance. The insured Declared Value is the maximum amount you will receive at the time of claim if your vehicle suffers from total loss or theft. So, overestimating or underestimating the IDV can cause you a loss during the claims process. 

  • Choose the Right Add-ons

Assess and buy only the appropriate add-ons that would fit your specific requirements, as the more the add-ons purchased, the higher will be the comprehensive insurance premium. For example, you can get Engine and Gearbox Protect cover to safeguard your engine if you live in a city more prone to waterlogging.

How to Calculate Comprehensive Motor Insurance Premium?

You can use an online Car Insurance Premium Calculator or a Bike Insurance Premium Calculator to easily calculate the estimated premium of comprehensive insurance for your desired vehicle.

The comprehensive insurance price is calculated by considering various factors such as the vehicle’s IDV, NCB, add-on covers you bought, RTO location of your vehicle, and any modifications made to your car for aesthetic purposes or to enhance performance.

However, the formula to calculate the premium for a comprehensive insurance policy is: 

Premium payable = Third-party insurance premium (fixed by IRDAI) + (Own Damage - NCB and other discounts (if applicable)) + Add-Ons

Factors Affecting Comprehensive Insurance Premium

The premium of comprehensive insurance policy depends on various factors, such as:

  • Model/Make of Vehicle: The make and model of your vehicle significantly affects your insurance premium. The more expensive the vehicle model or fitted with expensive parts or powerful engines, the higher will be the premium. 

  • Age of the Vehicle: Older vehicles have a less base premium as the depreciation on their parts increases, making them lose their value over time. 

  • Insured Declared Value (IDV): Your vehicle’s IDV is its approximate market value. So, a higher IDV implies that the premium amount of your comprehensive insurance policy will be higher as well.

  • No Claim Bonus (NCB): If you haven’t raised any claim in the previous policy year, you can claim the ncb in car insurance  for the next year. Thus, your premium will be reduced. 

  • Add-ons: Opting for add-ons also affects the premium price of your policy as the more add-ons you buy with comprehensive insurance, the higher will be the premium. 

  • Location of the Vehicle: Your vehicle’s RTO location or where your vehicle is registered also impacts the insurance premium. For example, if you drive your vehicle in a high-traffic metro city or accident-prone area, the premium will be higher due to increased risk. 

  • Modifications to Vehicle: Any modifications made to your vehicle to enhance its performance or aesthetic will fetch you a higher insurance premium amount to cover the costs of these parts.

FAQs about Comprehensive Motor Insurance