Car insurance policies cover against any loss or damage caused to the vehicle or its accessories due to the following:
- Natural Calamities: Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide.
- Man made Calamities: Burglary, theft, riot, strike, malicious act, accident by external means, terrorist activity, damage in transit by road, rail, inland waterway, lift, elevator or air.
A comprehensive car insurance policy consists of two separate parts:
- Own Damage – which addresses losses when you damage your car
- Third Party Liability – which indemnifies you against claims arising out of any losses to a third person(s) from your vehicle.
The third party liability policy is compulsory by law, whereas own damage liability is optional.