August 29, 2014 9:32 am
In case of an accident are the passengers covered under the motor insurance policy?
It depends whether you have a third party insurance or comprehensive insurance.
Third party insurance cover provides you for damages to the third party vehicle. It covers injuries caused to other people in an accident, plus damage caused to third party property. Some companies may charge you extra to provide cover for the third party property coverage. This coverage is essential these days as cost of repairing the car could be substantial especially if the property or vehicle is quite valuable. But it does not provide you any coverage against damages to your own vehicle.
Comprehensive car insurance policy is the coverage you require to cover damages to your own vehicle. It is a wider coverage plan providing third party cover also. Comprehensive coverage policy is expensive as compared to just third party insurance cover. Some policies provide personal accident cover to the owner of the vehicle as well but you may be charged for the same by some companies.Vehicle insurance premium also depends on the type of coverage you choose for. But comprehensive car insurance policy is always recommended as it provides more benefits. You can also opt for different coverage when you renew car insurance.
If it is a commercial vehicle (with yellow number plate) then yes everyone is insured equally. For private vehicles (with white number plate) insurance is for driver and for other passenger either it is nil or less amount.
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