Car insurance in India is mandatory by law. Broadly, car insurance can be of two types, the compulsory third-party insurance policy
and the comprehensive or bundled plan providing the benefits of both third-party insurance as well as own damages cover.
The Motor Vehicles Act has not specified any threshold in case of car insurance coverage
But insurers are liable to provide a maximum coverage of Rs.7.5 lakh in case of third-party property damage. However, there isn’t a specific ceiling in case of bodily injury or death.
Consider the points given below while determining coverage limit:
Ensure coverage of your personal assets while purchasing car insurance.
The higher the value of your personal assets, the higher should be your coverage to ensure your personal belongings are safe in times of financial distress.
Consider the amount you are able to pay while meeting other financial obligations, as non-payment of premium can lead to lapse of coverage.
Consider the amount of money you are willing to pay in case of out of pocket payments.
Value of the insured asset
If your car is new or valuable, you might wish to invest in some insurance riders providing extra coverage.
Disclaimer - *Conditions apply. This product is offered under the Group Insurance scheme wherein Bajaj Finance Limited is the Master policyholder. The insurance coverage is provided by our partner Insurance Company. Bajaj Finance Limited does not underwrite the risk. IRDAI Corporate Agency Registration Number CA0101. The above mentioned benefits and premium amount are subject to various factors such as age of insured, lifestyle habits, health, etc (if applicable). BFL does NOT hold any responsibility for the issuance, quality, serviceability, maintenance and any claims post sale. This product provides insurance coverage. Purchase of this product is purely voluntary in nature. BFL does not compel any of its customers to mandatorily purchase any third party products.