ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Also known as ‘other than collision’, this plan covers everything that a collision plan doesn’t offer such as fire, theft, flood, damage to car glass, damage due to falling object, animal attack, vandalism, damage due to bad weather, storm, cyclone etc.

Detailed explanation-2: -Third-party insurance, which is also sometimes referred to as ‘act-only’ insurance is a statutory requirement for all vehicle owners as per the Motor Vehicle Act. It is a type of insurance cover where the insurer offers protection against damage to the third-party vehicle, personal property and physical injury.

Detailed explanation-3: -A comprehensive policy, as the name suggests, offers overall protection against damages to both parties involved in an accident. This scheme is extensive, and it covers damages to car, theft, legal liability to third-party, and personal accident cover.

Detailed explanation-4: -Collision insurance covers your vehicle against damages arising from a collision with another car or object. In countries where both Comprehensive and Collision motor insurance are offered, the former is a different type of insurance coverage from Collision insurance.

Detailed explanation-5: -A comprehensive car insurance is an extensive motor insurance plan that covers the insured person against both, own damages and any third party liabilities.