Motor insurance is a type of insurance coverage that provides financial support in case of accidents involving your vehicle, such as a car or motorcycle.
Motor insurance can be obtained for three types of motor vehicles:
Car Insurance: This type of insurance covers personally owned four-wheel vehicles.
Two-wheeler Insurance: This insurance covers personally owned two-wheel vehicles, including motorcycles and scooters.
Commercial Vehicle Insurance: This insurance is designed for commercially used vehicles and helps reduce losses by ensuring that your business automobiles are in good condition.
Each passing day sees a rise in the price of cars and bikes. Staying without adequate insurance at such a period can result in significant financial losses for the owner. The benefits of purchasing such a plan are detailed below.
Prevents Legal Hassle
Helps you avoid paying any fines for traffic violations and other legal obligations that you otherwise would have to.
Meets All Third-Party Liability
The insurance policy aids you in successfully covering financial losses if you cause bodily harm or property damage to another individual during a motor vehicle accident.
Financial Assistance to Repair Your own Vehicle
After collisions, you must spend a lot of money fixing your own car. Insurance policies restrict these out-of-pocket costs, enabling you to start repairs right away.
Your insurance plan will assist you in recovering some of the vehicle's on-road cost if it is stolen. If your car has been in an accident and is beyond repair, you can anticipate receiving comparable assistance.
Types of Motor Insurance Policies
Motor insurance policies are classified into three types based on the level of coverage they provide:
This is India's most fundamental motor insurance coverage. According to the Motor Vehicles Act of 1988, it is the very minimum requirement for all motor vehicle owners. The premiums for these products also tend to be higher due to the limited financial help. These insurance policies exclusively cover the financial obligations owed to the third person injured in the specific accident, preventing you from having to deal with legal issues as a result of the disaster. However, they do not provide any financial support for the policyholder's car to be fixed following accidents.
The protection and security provided by comprehensive insurance plans are superior to that of the third-party liability option. In addition to covering third party liability, these plans also pay for the costs of fixing any damage an accident has caused to the policyholder's own car. Comprehensive plans also provide a compensation in the event that your car is damaged as a result of a fire, an accident, a natural disaster, a riot, or any similar event. Last but not least, if you have comprehensive coverage in place, you can recover the cost of your bike if it is stolen. In order to round out a complete motor insurance policy, one can choose from a number of add-ons. Zero depreciation coverage, engine and gearbox protection, consumable coverage, breakdown help, etc. are a few of these add-ons.
Own Damage Cover
Insurance firms provide consumers with this type of specialised auto insurance. Additionally, you can only use this type of coverage if you bought your automobile or two-wheeler after September 2018. The automobile must be brand-new and not used. Additionally, keep in mind that only drivers who already have third-party liability vehicle insurance policies are eligible to use this standalone own damage coverage. You essentially get the same benefits from own damage cover as from a comprehensive policy without the third-party liability coverage.