India is emerging as a global hub for the auto-part or automotive industry. With the expansion, we experience many booms but every coin has two sides. Every year, there are millions of accidents we see in the Automotive industry. It is very possible that one could occur at your Automotive store. The same condition applied for manufacturers also, as they manufacture different parts of automobiles and there can be some incidents that can create financial loss to the manufacturer. If you work in any sector of the Auto-part industry, you must be aware of how many different types of businesses are involved with buying, selling, and manufacturing. No matter what part of the automotive industry you work in, financial security is a need of an hour. Some of the

insurance covers relevant for Auto-part and Automotive industry are followed as:
  • PRODUCT LIABILITY COVER-Product liability insurance for auto manufacturers handles claims made by your customers when the product malfunctions lead to third-party bodily injuries or property damage.
  • Auto-manufacturer product liability-Policy covers manufacturing defects, design defects, and flaws as well. Incorrect labeling, safety warning, and insufficient instructions are also covered by a product liability insurance policy.
  • Product recall cover- The cost incurred to recall or withdraw a product is paid by the auto-manufacturer liability policy and it also offers coverage against lawsuits. Loss due to incidence of product contamination or tempering is also paid for by the product recall insurance.
  • Product recall insurance will also pay for loss due to withdrawal of the product due to Governmental announcements.
Industrial All Risk

Auto manufacturers should also consider an all-risk policy to cover their property. Insurance will cover Offices, Machinery, Furniture, Stocks in trade for any risk except named exclusions.

IAR

IAR (Industrial all risk) policy also covers loss of profit due to Fire, Natural catastrophes, and Machinery breakdown

Car Insurance

We can only understand the importance of car insurance when we buy car insurance. Despite all the protections we take, despite being following all the traffic rules and regulations chances are that our car can meet unexpected contingencies on the road, such as major or minor accidents, breakdowns, tire bursts, and so on.

The best solution to free you of financial worries from such a situation is car insurance.

There are five major types of car insurance coverage in India are:
  • Unlike CGL, which covers damage done to someone else’s property, this policy applies to your property. Commercial property insurance covers your warehouse and everything in it, including the following:
  • Third-party Liability only cover-Under this type of car insurance coverage you will get the cost of repairs/ replacement of the damaged vehicle of the third party. Cost of hospitalization and treatment of the third party. Liabilities arise out of the death of the third party.
  • Collision Damage- Under this coverage, the cost of repairs to your vehicle that has been damaged is reimbursed. To determine the cost of collision coverage, its age and insured declared value is taken into account.
  • Personal accident cover-Use Personal accident cover to protect yourself from financial losses and medical expenses whenever you meet with an accident.
  • Zero Depreciation insurance-This coverage is generally considered as an add-on coverage in India on car insurance policy. The insurer will consider the depreciated value of the damaged parts for the claim settlement.
  • Comprehensive car insurance-This type of coverage gives the highest level of protection as it includes liability for third parties, damage to won vehicle, personal accident cover, and all non-collision damage such as storms, floods, fire, and theft.