What is Motor Insurance?
Motor Insurance is a type of insurance policy which covers your vehicles from potential risks financially. Policyholder's car or two wheeler is provided financial security against damages arising out of accidents and other threats. In India, motor insurance is mandatory.
Types of Motor Insurance
Motor Insurance for Specific Vehicles - Private Car Insurance and Commercial Car Insurance
A private car insurance is bought by personal car owners using thier car for personal use. There are different types of policies which a car owner can choose.
A commercial car insurance is to be bought by people who own taxis or use thier car for commercial purposes.
Motor Insurance Policies
1. Third Party Car Insurance Policy
As per the Motor Vehicles Act of 2019, it is mandatory to avail a Third Party Cover. Without it, you will be driving your car unlawfully on the road and would result in a penalty and/or fine. This cover offers coverage against legal liability caused to a third party due to your car or vehicle. In simple terms, Third Party insurance covers injury or death caused to a third person by your vehicle along with damage caused to a property. Here’s one interesting feature of the cover. As per the Motor Vehicles Act, the claimant is not obliged to prove negligence of the driver that was responsible for the accident. As the name suggests, Third Party Insurance only covers third party liabilities. It does not cover damage to your vehicle or theft. Considering the nature of the cover, the premium is also low.
2. Own Damage Car Insurance Policy
An Own Damage car insurance policy helps you stay covered against the damages caused to your car due to accidents like fire, theft, etc.
In case of an accident, an own damage cover compensates you for expense to repair or replace parts of your car damaged in the accident.
This policy covers the cost of damages to your car due to-
Natural calamities like floods, earthquake, fire and more
Man-made calamities like vandalism, riots and terror attacks
Damage to your car or the belongings in the car in case of an accident
Theft or malicious acts
3. Comprehensive Car Insurance Policy
With comprehensive car insurance, you get the benefits of Third Party Liability cover along with Own Damage coverage. As the name indicates, it offers in-depth, end-to-end protection for you and your car. The key feature of this insurance is that it covers theft of the car in addition to damage due to a number of reasons. If you have this cover and your car gets stolen, you can breathe easy knowing the fact that it will be covered. Comprehensive insurance covers a number of perils such as vandalism, fire damage, floods, damage due to natural calamities like tornado, wind storm etc, glass breakage (e.g. windshield), damage due to falling object and so on. You can also amplify your protection with add-on covers such as Personal Accident cover, Electrical Appliances cover, Zero Depreciation cover and much more.
Importance of Motor Insurance in India
With the update in the Motor Vehicle Act 2019 it has become even more essential to know about the various aspects that affect you as an owner of a vehicle. Motor insurance is a major aspect that you need to know about.
Now a days a car has become very much important than a luxury. Going or planning for long-distance travelling ,most of the people prefer to travel in the ease and comfort of their cars instead of using other forms of transport. Whenever you buy a car, motor insurance policy is equally valuable & important .
Purchasing a decent policy is becoming a overall responsibility for people everywhere as motor insurance policy is actually mandatory in most of the countries . Because of the high premium rates today , many buyers believe that it's a waste of money . However motor insurance policy, over the long run in future , becomes a very important & valuable investment. Motor insurance is becoming necessary for everyone who owns a car no matter how perfect they drive a car or how super driver they are .
Accidents may be caused by anyone, and motor insurance policy helps to ensure that you as well as your car to stay safe . Lots of insurance providers not merely buy insurance policy for destroys & damages to the car but in addition also go for a medical insurance as a part of the policy . In this way , if anything at all happen to you in your vehicle , your insurance policy will take care of all the expenses for that as well . Nowadays an additional advantage to motor insurance is third party liability . Because of this benefit , anyone that gets injured due to any sort of accident he is involved in, it could also be covered under your insurance policy.
The best perfect motor insurance policy is available for you will help you to decide that depending on whatever your needs and requirements are . Due to the vast market of insurances you can find lots of competitors in the market today , lots of insurance companies provides you with customized insurance policies. If in case more than one person drives the car in your family , be ensure your insurance policy protect them as well . The best motor insurance policy includes damage or loss to your car because of burglary and theft , natural disasters , riots and malicious acts , fire and explosions , etc . A number of motor insurance policies include a feature which is known as the no-claim bonus – this is applicable during the time when you don't a claim for insurance in quite a long time, so in this case the motor insurance provider will provide you with a discount on your premium rates .
A motor insurance policy have to match the size of your pocket without being a strain on your expenses . With the ideal amount of insurance coverage and exclusions , your insurance policy are going to be effective for your vehicle and situation . Even though if you are planning to purchase motor insurance policy for your child's car , it's advisable to purchase it on your own name , as younger drivers get extra expensive insurance rates . Many insurance companies in India include loyalty discounts , therefore if you've bought some other insurance policy from them , they may give you a price reduction or discount on your motor insurance premium.
Add On Covers for Your Car Insurance Policy
We have so many additional covers to increase the vehicle’s safety:
- Nil Depreciation Cover: We can opt this cover with a little additional premium to protect additional depreciation charges at the time of claim.
- NCB Retention Cover: We can opt this cover to protect our No Claim Bonus even after claim in running policy.
- Total Cover: We can get insured our additional cost of vehicle, This cover allow benefit to get reimbursement of the amount spent on Registration Cost, Road Tax and Insurance at the time of Total Loss, Constructive Total Loss or Theft Claims.
- Engine Protector Cover: An engine is the heart and soul of your car. The Engine add-on cover offers compensation for expenses incurred while fixing the indirect damage done by water ingression or leakage of lubricating oil leading to loss or damage
- Consumables Cover: Sometimes, a bunch of seemingly insignificant expenses can create a big dent in your pocket. All expenses incurred on consumable items are covered in case they are damaged due to perils covered our policy. Consumable items such as nuts and bolts, screws, washers, grease, lubricants, clips, AC gas, bearings, distilled water, engine oil, oil filter, fuel filter and break oil are covered.
Motor insurance policy is available for people in each of the avenues of life. Whatever your age , which model car you have or what number of people you want to cover , you will get a policy that well suited for you . With the wide variety in the insurance business today , it's very simple to find a motor insurance policy that is customized to meet your requirement. Buying a
comprehensive car insurance policy is very important for all vehicle owners today – Buy one perfect & best suited motor insurance policy and stay protected.