The purchase of a car is a milestone in any individual’s life. The next step is to purchase a suitable car insurance policy to protect the vehicle against accidents or other unforeseen circumstances.
According to the Motor Vehicles Act of 1988, it’s mandatory to have a third-party insurance for every car owner in India. A third-party insurance is a basic policy that provides protection to the third party involved in the accident/damage. This policy does not have any cover or protection for the policyholder.
We can opt for a comprehensive insurance policy that covers damages, theft and legal liability towards third-party and provides a personal accident cover as well.
But can one car be covered by two insurance policies? Let us understand more about this.
Is it economically viable?
Two car insurance policies on one vehicle means you have to pay two premium amounts. However, at the time of any accident/damage, you cannot file for a claim with both insurance companies. So, there is no additional value of the second car insurance policy.
The answer therefore is no. It’s not economically viable to have two car insurance policies for the same car.
When will this situation arise?
You might be wondering about the kind of situation that will result in having two car insurance policies on the same vehicle at a point in time.
· Overlap of Policies
This generally happens when you’re in between two policies with two different companies. A minor overlap between the policies can result in confusion.
You can avoid this confusion by carefully reading through the policy documents. Be sure of the expiration date of the previous policy and the start date of the new policy and avoid any overlap.
· Two owners of one car
If you have bought a car with your partner and if both of you individually apply for two separate insurance policies on the same car, there will be confusion at the time of claim.
You can avoid this by purchasing a single car insurance policy under both names. The premium will be higher as the policy is covering more than one individual. But this process will reduce confusion and make it easy to file for a claim at the time of requirement.
Is it illegal?
There are no limitations on having two car insurance policies on the same car, legally speaking.
However, if the insurance company detects that you are knowingly filing for claims on two different insurance policies for the same accident, they will check for double insurance fraud. So a specific claim can only be filed with one of the insurance plans and not with both.
Comprehensive Car Insurance Policy
Instead of getting more than one car insurance policy for one vehicle, it’s best to get one comprehensive insurance policy that covers all facets of damage to the car, the third-party involved and the policyholder.
Chola MS offers a comprehensive car insurance policy with competitive premiums, hassle-free claims and many such benefits. Find out more about the features and benefits here.
