Comprehensive and Third-Party Insurance plans – The Differences - Greyfont

Comprehensive and Third-Party Insurance plans – The Differences

What is the basic difference between the two?

A comprehensive plan provides complete damage protection  due to accidents or road-mishaps. It is comprehensive as it covers damages to the car,third-party legal liability, theft, along with the personal accident coverage.
Coverage against any legal liability arising out of injuries to a third-party when the policyholder is at fault is known as third-party insurance that covers against damages and injuries caused by the insured vehicle, to a third-party person or property as is mandatory to own by every motor vehicle in India as per the Motor Vehicles Act, 1988.
A comprehensive plan is always more advisable as it provides coverage against a gamut of factors and is especially helpful in protecting your luxury cars.


Benefits Of Owning A Comprehensive Car Insurance Plan

It helps one be protected against -

  • Vandalism or theft.

  • Damage from glass.

  • Flood with is a common claim for insurance especially in tropical countries.

  • Fire.

  • Third party liability

  • Damage caused by animals.

  • Damage caused by falling objects – can be fruits/defence missiles/construction material.

  • Damage from natural disasters like flood, hurricane, tornado etc.


Factors That Are excluded from coverage under the Comprehensive Car Insurance Plan

  • Depreciation

  • Mechanical or Electrical breakdown

  • A common factor is tubes and tyres. It is a very frequent change that happens but insurance companies don’t hold themselves responsible for that as it is ascribed to bad driving. 50 % of the total replacement charges in case of accident causing damage to tubes & tyres

  • In case the driver be driving without a valid driving license

  • In case the driver be driving under the influence of intoxicants

  • Loss due to mutiny war or nuclear attack

  • Aging of the car that is bound to depreciate the value as well.

  • Natural time borne wear and tear of the vehicle.


Benefits Of Owning A Third-Party Car Insurance Plan

  • Protections against legal liability like death/bodily injury to third party or damage to third-party property by insured car.
  • The claimant is not obliged to prove the negligence of the insured vehicle. This is known as “no fault liability Claim”


Factors That Are excluded from coverage under the Third-Party Car Insurance Plan

  • No damage protection against accident.

  • 2. If belongings are damaged or stolen.


Pros & Cons of Comprehensive and Third-Party Car Insurance Plans:

  • Car Valuation – Low valued cars better protected under Third-party insurance claims as repair bills can be afforded in comparison to the high premium of a comprehensive plan. Luxury cars call for Comprehensive Car Insurance Plans.

  • Coverage – Third party coverage seeks to alleviate your bills if ever your car was to cause harm to a third-party vehicle. If seeking coverage for one’s own car, one needs to opt for a Comprehensive plan.

  • Expense Involved – Better to not regret later and be safe by buying a comprehensive Insurance plan. One stands to lose his entire savings in case of an unfortunate incident.



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