In liability only policy, coverage is provided only for the third party liability person who has been injured or the vehicle that has been damaged. The claim can be of unlimited amount depending on the IDV or Insured’s declared value.
Package policy-
Package policy is all-inclusive policy where it covers the damage or loss of the vehicle, vehicle-owner and the driver along with third party liability. It covers perils like fire, lightning, burglary, explosion, theft, housebreaking and so on. It also covers the loss or damage due to malicious or terrorist act.