Motor Insurance: Get Your Facts Straight

Now a day’s most of the people love to travel with ease and comfort. Therefore, they choose their private vehicle rather than any public transport while travelling. Along with purchasing a new car, buying a motor insurance policy is equally valuable & important. Motor insurance is an insurance policy that protects the owner of the vehicle against any financial loss arising out of damage or theft of the vehicle. Motor insurance policy plays a helpful part in the long run. You can opt for the best car insurance policy depending on your needs and requirements.

Types of Motor Insurance

Motor Insurance covers two-wheelers like scooters and motorbikes or four wheelers like private cars, jeeps, buses, trucks, commercial taxis and other vehicles. Motor insurance is divided into three types.

Car Insurance

Car insurance is the fastest growing insurance sector as car insurance is mandatory while buying a new car. Comprehensive car insurance covers loss or damage by accident, fire, lightning, riots, earthquake, hurricane, terrorist attacks, explosion, theft, third party’s claims and damages. One can pay more for an additional premium to extend their base policy’s coverage.

Two Wheeler Insurance

Two wheeler insurance is another type of auto insurance in India. A comprehensive policy provides coverage against natural calamities like fire, rockslide, landslide, hurricane, flood, earthquake and manmade calamities like theft, riots or any damage caused to the vehicle in transit. A two wheeler insurance policy also covers against any legal liabilities arising due to third-party injury/death or damage caused to its property.

Commercial Vehicle Insurance

Commercial Vehicle Insurance covers all those vehicles that are not utilized for personal purposes. It covers insurance for trucks, buses, heavy commercial vehicles, light commercial vehicles, multi-utility vehicles, agricultural vehicles and ambulances.

There are two main types of motor insurance coverage in India, the third being commercial vehicle insurance which is not common as the two.

Third Party Cover

Third party liability insurance covers only damage caused to third-party by the insured’s vehicle. In India, Third Party Liability Insurance is mandatory for driving your vehicle, otherwise, one can be fined by the traffic police if they catch you driving in an uninsured vehicle.

Comprehensive Cover

A comprehensive vehicle insurance policy provides complete protection for your vehicle. This cover includes damage to vehicle, loss and theft of the vehicle as well as third party cover. Comprehensive motor insurance covers damage to the vehicle caused due to accident, riots, strikers, malicious acts, earthquake, flood, storm, etc. It also includes loss or theft of the vehicle, liability to third parties and personal accident cover available for owner-driver.

Insurance policies does not cover general ageing, wear and tear of the vehicle. Mechanical or electrical breakdown, damage caused by a person under influence of alcohol, drugs and any other intoxicating substance and damage caused by a person driving without a valid driving license.

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