Motor Insurance is a type of insurance policy that covers your vehicles from potential risks financially. The policy holder's car or two-wheeler is provided financial security against damages arising out of accidents and other threats such as sustains damages due to natural or man-made calamities such as earthquake, flood, lightning, and theft among others. In India, motor insurance is mandatory.
You pay a certain amount as a premium to insurers to get full coverage of vehicles. The premium amount depends on many factors, including the car model, age of vehicle, accessories, driving pattern, etc.
Read on to known various types of motor insurance available:
Types of Motor Insurance:
Third Party Car Insurance Policy:
According to the Motor Vehicles Act 2019, it is mandatory to seek third-party coverage. Without this, you will drive your car illegally on the road and incur penalties and/or fines. This coverage covers legal liability caused to a third party from your car or vehicle. In other words, third-party insurance covers injuries or deaths caused to a third party by a vehicle, as well as damage to property. Here is one of the interesting features of the cover. According to the Motor Vehicle Law, the claimant is not required to prove the negligence of the driver responsible for the accident. As the name suggests, third-party insurance covers only third-party liability. It does not cover damage to your motor vehicle or to you as well. Given the nature of the coverage, the premium is also low.
Own Damage Car Insurance Policy:
An Own Damage car insurance policy helps you to cover damages caused to your car due to accidents like fire, theft, etc. In case of an accident, an own damage cover expense of vehicles to repair or replace accessories and compensate the owner with the full coverage value. This policy covers the cost of damages to your vehicle due to Natural calamities like fire, flood, earthquake, etc. Man-made calamities like terror attacks, riots, Theft, or malicious acts, etc. Damage to your car or belongings due to an accident.
Comprehensive Car Insurance Policy:
With comprehensive motor insurance, you get the benefits of third-party liability insurance, as well as coverage for your own damages. As its name suggests, it provides complete end-to-end protection for you and your car. The main feature of insurance is that it also covers car theft to cover damage caused by various reasons. If you have this cover and your car is stolen, you can breathe easily knowing that you will be covered. Comprehensive insurance covers a range of risks, such as vandalism, fire damage, flooding, natural disasters such as tornadoes, windstorms, etc. glass breakage (e.g. windshield), damage from falling objects, etc. You can also extend protection with additional coverage, such as accident coverage, coverage for electrical appliances, zero depreciation coverage, and more.
Before buying any motor insurance, contact advisor for the best policy advice which will suit your requirement.
Our PURPOSE is to help families & Business, Reduce financial Risk due to unforeseen circumstances, beyond their control & make them financially secure through right kind of insurance advisory.