ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Comprehensive insurance is insurance coverage that pays for the repair or replacement. Comprehensive car insurance typically covers third-party liabilities, damage from an accident, fire, natural calamity, theft, etc.

Detailed explanation-2: -The OD component refers to the damages caused to your car. This policy reduces your out-of-pocket expenses and the insurance company will pay for the repairs when your car gets damaged. Das said, “Since OD is covered under a comprehensive policy, it also covers damages due to vandalism.

Detailed explanation-3: -Comprehensive car insurance gives you coverage for both third-party liabilities and own-damages under a single policy. It gets affected by depreciation rates. In this, only own-damage cover insurance is affected by the depreciation rate. Yes, you can buy add-on covers with it.

Detailed explanation-4: -Comprehensive insurance coverage is defined as an optional coverage that protects against damage to your vehicle caused by non-collision events that are outside of your control. This includes theft, vandalism, glass and windshield damage, fire, accidents with animals, weather, or other acts of nature.

Detailed explanation-5: -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.