As per Section 146 of Motor Vehicles Act 1988 No person can drive a vehicle without proper insurance, which reads as under:
Necessity for insurance against third party risk. — (1) No person shall use, except as a passenger, or cause or allow any other person to use, a motor vehicle in a public place, unless there is in force in relation to the use of the vehicle by that person or that other person a policy of insurance complying with the requirements of this Chapter
[Provided that in the case of a vehicle carrying, or meant to carry, dangerous or hazardous goods, there shall also be a policy of insurance under the Public Liability Insurance Act, 1991 (6 of 1991).]
There are two types of Policies:
(i) Liability Only Policy: This covers Third Party Liability for bodily injury and/ or death and Property Damage. Personal Accident Cover for Owner Driver is also included. This policy is also known as ACT only policy etc.
(ii) Package Policy(Comprehensive): This covers loss or damage to the vehicle insured in addition to (i) above.
a comprehensive car insurance policy covers damage to your vehicle caused by certain events. These include (but are not limited to) fire, theft, vandalism and falling objects. This also comes with a deductible you volunteer to pay and which you are obliged to pay before the insurance company pays the remainder.
If what you are looking for is coverage for yourself, against damages to lives and properties of third parties (as required by M V Act) and your vehicle, a comprehensive car insurance policy is what you need. It is a wider coverage plan since it has provisions for third-party along with cover for the damages to your vehicle due to accidents. Comprehensive coverage policy is expensive as compared to just third-party insurance cover.
Various insurers are offering covers as mentioned above and in addition to that add on covers also. There might be slight variations in the benefits and exclusions depending on the insurance company and it is advisable to check the terms and conditions in detail before taking a policy.