ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In case your car is vandalized or broken, your insurer will pay for the damages caused to your car, but it will not pay for any theft or damage caused to your personal belongings kept in the car, like your laptop, phone, or other valuables.

Detailed explanation-2: -It protects the owner against legal liability arising from an accident causing any permanent injury or death as well as any damage to the property. It also covers for fire and theft provided the vehicles are laid up in a garage and not in active use.

Detailed explanation-3: -Inclusion / Exclusion of third party Insurance Plan Third-party insurance offers protection against damages to the third-party by the insured vehicle. It covers physical injuries, damages to the vehicle, damage to the property, and death.

Detailed explanation-4: -In India, as per the Motor Vehicles Act, it is mandatory that all vehicles that operate in any public space must have a motor vehicle insurance cover. Policyholders must have at least ‘third party liability’ motor insurance cover even when opting for the basic insurance plans.