One is mandatory by law, the other is essential for your wallet. Understand the difference before you renew your vehicle insurance.
What exactly are you paying for?
| Coverage Benefit |
Third-Party (Liability Only) |
Comprehensive (Package Policy) |
|---|---|---|
| Legal Mandate | Mandatory | Optional but Recommended |
| Damage to Third-Party Property | Up to ₹7.5 Lakhs |
|
| Injury/Death of Third Party | Unlimited Liability |
|
| Own Vehicle Damage (Accident) | ||
| Theft of Vehicle | ||
| Fire / Explosion | ||
| Natural Calamities (Floods, Earthquakes) | ||
| Man-made Calamities (Riots, Strikes) | ||
| Add-ons Eligibility (Zero Dep, Engine Protect) | ||
| Premium Calculation | Fixed by IRDAI annually | Based on IDV (Car Value) + Engine CC |
This is the most basic form of insurance required by the Motor Vehicles Act, 1988 to drive on Indian roads.
