Insurance is a mandatory requirement, besides license, registration, and the PUC certificate, to drive a vehicle on Indian roads. All vehicle owners, be it two-wheelers or four-wheelers, private or commercial vehicles, need to buy an insurance policy.
As a car owner, having an insurance cover not only helps in staying on the right side of the law but also ensures a financial safety net against legal liabilities and steep repair costs. The coverage of every policy differs, and hence, choosing the right policy is also an important decision when buying one. Having said that, have you wondered what would happen if you had two policies for the same car?
This article explains the legality surrounding two insurance plans for one car and whether it is advisable or not to buy double insurance covers. Continue reading to know more.
The Legality of Having Two Car Insurance Policies
If you are wondering if it is illegal to have two insurance policies for your car, you should know that there is no particular legal restriction for the same.
Now, generally, the same insurance company does not provide insurance coverage for a second time for the same vehicle. The reason is that it is against the insurance principle of unjust enrichment where a policyholder can raise multiple claims to make a profit out of them. However, insurance is no means to earn profits and hence, the same insurance companies do not offer second insurance coverage for the same vehicle.
Yet, if you want to buy second car insurance
, you can opt to purchase it from a different insurance company. Since it is fresh insurance coverage for such another insurer, you will be required to pay a separate premium for it.
You need to keep in mind that paying two separate insurance premiums can be expensive and can increase your overall outflow on insuring your car. Thus, insurance experts suggest not seeking double insurance for the same car.
*Standard T&C Apply
What are the Disadvantages of Double Insurance?
As mentioned above, there is no legal restriction on buying double insurance coverage. However, it does not offer any additional benefit in terms of coverage. Instead, it increases the overall premiums. Here are some of the disadvantages of buying two car insurance plans:
Multiple car insurance plans, be it a comprehensive plan or third party car insurance
, causes unnecessary confusion and delay in the settlement of claims.
Even with two insurance plans, you can raise a damage claim only from one insurance company. Following the principle of unjust enrichment, no profit can be made out of an insurance contract.
Lastly, two insurance plans for the same car increase the overall premiums you pay for it.
*Standard T&C Apply
In Which Situations Will Two Insurance Plans Benefit You?
When you purchase two separate insurance plans with no overlap in their coverage, it is only then, that having two insurance plans for the same car will be beneficial.
For instance, you already have the mandatory third-party cover and choose to opt for a standalone own-damage plan. Thus, with no overlap in their scope, both plans can be handy to tackle different events like accidents, third-party damages, repairs, etc. * Standard T&C Apply
When selecting a suitable car insurance policy, make sure to compare the plans using a car insurance calculator
. It is a free tool that aids in the comparison of several plans based on their features and price.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.