What is Motor Insurance?
It is a type of policy that offers coverage to the insured vehicle against monetary losses that may arise due to an accident or one caused from other damages. It protects the policyholder in case of financial losses - resulting from an accident or other damages - suffered by the insured vehicle. A comprehensive motor policy covers damages to third-party and third-party property alongside compensating for own losses also.Is Motor Insurance Compulsory?
According to Sec 146 of the Motor Vehicles Act, 1988, it is important for you to get motor insurance before taking your vehicle out on the roads. If you do not wish to purchase a comprehensive insurance plan, getting third-party policy coverage is the bare minimum that you need to purchase for your vehicle.
What does the Policy Cover?
The policy covers Damages and losses that occur due to natural calamities like earthquake, floods, fire, lightning, landslide, etc. It also protects against the Damages that occur due to burglary, theft, riots, etc. It also covers Third-party legal liabilities owing to damages (both bodily injuries and death) caused to third-party as well as financial losses to a third-party property.
What amount is Covered?
Vehicles are insured at a fixed Insured Declared Value (IDV). It can be described as the current market value of your vehicle. IDV is usually higher for new vehicles and it depreciates with time.
Reasons to buy Motor Insurance
Pays for Damages
It is a type of policy that offers coverage to the insured vehicle against monetary losses that may arise due to an accident or one caused from other damages. It protects the policyholder in case of financial losses - resulting from an accident or other damages - suffered by the insured vehicle. A comprehensive motor policy covers damages to third-party and third-party property alongside compensating for own losses also.
Reduced Liability
Taking Third Party Liability (TPL) motor insurance coverage is compulsory in India. The TPL policy covers you against the legal consequences of an accident caused by you. For example, if you meet with an accident that results in damages to someone else's property or causes injuries to another driver/pedestrian, the insurance company will pay for their medication and save you from the legal consequences of the case.
Protects from Hospitalization Expense
Some accidents result in fractures and severe injuries and require immediate medical attention. The costs of hospital treatment can be very high and the same can be taken care by the insurance company.
Types of Motor Insurance
Private Car Insurance
Commercial Vehicle Insurance
