Vehicle / Motor Insurance

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 their 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 their car for commercial purposes.

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.

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