Comprehensive Motor Insurance: Minimize Your Expenses

Written on Tuesday, October 13, 2015
By Mukesh Kumar, Executive Director, HDFC ERGO

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A personal car is an object of luxury or necessity depending on the way one looks at it. This object of luxury/ necessity comes with its own set of risks. The ownership of a car may cause heartburn in the unfortunate event of damage, accident, loss of car, third-party liability, etc. With financial liabilities arising out of a mishap related to personal cars could be serious, it is important that you are secured against such possibilities. While the law mandates that every owner of a motor vehicle must have one motor insurance policy, it is recommended to ensure that you as an owner of the vehicle get maximum mileage out of your Motor Insurance. A Motor Insurance policy is a mandatory policy, issued by an insurance company as a part of prevention of public liability to protect the general public from any accident that might take place on the road. A Motor Insurance Policy safeguards your finances and gives you the desired coverage in the event of the vehicle-related mishap.


Whether there is a natural disaster such as an earthquake or flood; or somebody damages or steals your car, a Motor Insurance takes care of it all. Two types of Motor Insurance covers are available to Indian car-owners:


1) Liability Only Cover, which insures you against any legal liability following an accident involving your vehicle. It does not cover damage to your vehicle.

2) Comprehensive Cover, which insures all liabilities as well as damages caused to the vehicle.


The Motor Vehicle Act of India states that every motor vehicle plying on the road has to be insured, with at least Liability Only Policy which is the minimum requirement. However, prudence requires that one should insure all insurable risks, especially when the risks are real and the tools to manage those risks are available. Given that a car-related mishap is most likely to result in damage to the vehicle and the incremental cost of the “Comprehensive Motor Insurance” over the “Liability Only” is low, it is better to go for the former than the latter. With “Liability Only” Motor Insurance, you will end up paying from your own pocket to fix the damages to your car in the event of a mishap. And the cost of fixing the damage to your car might be several times of the incremental premium paid for a Comprehensive Motor Insurance.


You can ensure the protection of your prized possession with the best comprehensive Motor Insurance Plan. A Comprehensive Motor Insurance is designed to provide optimum coverage at reasonable cost. What is covered under a standard Comprehensive Motor Insurance policy?


Own Damage to the Insured vehicle caused by:

-Accident by External Means

-Fire, Explosion, Self-Ignition and   Lightning

-Transit by Road, Rail, Inland, Waterway, Air, Lift

-Burglary, Housebreaking or Theft

-Terrorism, Riots, Strikes or Malicious Acts

-Earthquake, Flood, Storm, Landslide, Rockslide


Third Party Liability:

-Injury or Death of Third Party

-Property Damage (up to a certain   limit)


Personal Accident:

-Injury or Death of Third Party


Comprehensive Motor Insurance also covers re-imbursement of Towing Charges, up to a certain pre-decided amount of cars. You can also opt for the Motor Insurance Add-on plan which enhances your coverage for better protection, in addition to your standard Motor Insurance policy. For additional convenience, you can buy as well as renew a Comprehensive Motor Insurance online. Most insurance providers offer the facility to purchase / renew the policies online.



#Insurance is a subject matter of solicitation, read scheme document carefully before opting for a plan.

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