India Car Insurance is one of the modern diversifications in the insurance sector in India that has not only provided revenue to the insurance companies but also relieved the car owners across the country from the burden of incurring various unprecedented expenses.

The Private Car Insurance Policy in India provides insurance coverage on any light motor vehicle which is used for domestic, social or commercial purposes. Individuals and corporate owners of private cars and the financiers of the car who have insurable interest in the vehicle are the ones who can reap the benefits on Car Insurance in India.

The risks covered in Indian Car Insurance are:

• Loss or damage by accident, fire, lightening, self-ignition, external explosion, burglary, theft and malicious act.
• Riot and terrorism, strike and other natural calamities like earthquake, flood, cyclone.
• While in transit by road, rail, air or elevator.
• Liability of injury or death caused to third party or paid driver.
• Loss or damage of any electrical or electronic accessory of a car, PA cover for drivers, insured or any named person and other unnamed passengers (subject to payment of additional premium).

However all the above situations are subjects of legal verifications by the respective authorities on whose approval only, the claims may be realized. The claims will not be entertained under the following situations:

• Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failure or breakage.
• When the insured car faces the aforesaid problems outside the geographical boundary of India.
• When the insured car is used contrary to its limitations as to usage mentioned in the agreements.
• When the insured car is driven by any person other than the driver stated in the “driver's clause”.
• If the driver of the car is drunk at the time of the occurrence of aforesaid problems.
• During war and nuclear perils.

The Car Insurance Company will bear the following expenses on behalf of the insured.

• Actual amount spent on repairs and replacement of part(s ) of the car subject to depreciation and sum insured.
• Garaging and towing charges.
• Damage caused to tires.
• In case of complete loss, market value of the car at the time of loss or the sum insured whichever is less.

Today, car insurance is being provided by various private insurance companies like ICICI Bank, Kotak Mahindra,Bajaj etc.

With growing demand for cars, the future holds good for Car Insurance in India .