Vehicle insurance is another name given to motor insurance that covers every type of motor vehicles. This type of coverage is in fact made mandatory in India and it is provided by companies to two-wheelers, cars and jeeps and any other commercial vehicle found on the road. Motor insurance aims primarily at ensuring the safety of the driver together with all other people.
motor insurance in India comes in several forms and here are the principal categories that appear in the market:
Personal Car Insurance Policy
All the private owners of vehicles in India should get their vehicles insured. A personal vehicle cover is an insurance scheme that covers losses incurred as a result of accidents, arsons, theft, and natural calamities. It also removes personal accident insurance to the owner, as well as payment to those third parties in case they are harmed or at risk of their property when because of the covered car.
Commercial vehicle insurance
Any car that is being utilized in business must be insured through commercial vehicle insurance policy. Such insurance covers trucks, taxis, cabs, buses, auto-rickshaws, ambulances, tractors and other utility vehicles. The scheme covers vehicle damage, third party coverage and accidental injuries of the person.
Type of Car Insurance
Here are the different types of car insurance in India:
Full Complete Car Insurance
It is a comprehensive policy that provides cover to the insured vehicle, damages incurred to the policyholder, as well as, the third party liabilities. It guards against theft, vandalism, riots, natural or animal or other vehicle accidents. It also addresses incidences which occur during civil disturbance.
Add-On Covers by Comprehensive Policies
An add-on upon a comprehensive policy may be added by the insured. Typical ones are:
Zero Depreciation Cover
Insurance that also goes by the name of bumper-to-bumper insurance ensures that you do not make a loss as a result of depreciation when you claim. It is preferably suitable to automobiles under 5 years.
Roadside Assistance
In case you break down, whether on the road or in town, this attachment provides you with either towing services, repair or fuel supplies at insurances own networks of service providers.
Tyre protection Cover
This guards the bulges, burst, cuts and punctures in tires by accident or bad roads.
Consumables Cover
It includes such items as engine oil, brake fluid, grease, screws, nuts, bolts, air conditioner gas, and filters which are otherwise not covered under a general claim.
Third-Party Car Insurance
Third party insurance is made compulsory by the law. It compensates to cover damages or bodily harm caused to another individual, car or property by your covered car. It is a comprehensive minimum cover and it is commonly a recommendation when the vehicle is old or whose value is low.
Private Damage Car Insurance
Own Damage, also known as Collision Damage, is what insures your vehicle against loss due to accidents, fire, theft and natural calamity. Premium is slated on the Insured Declared Value (IDV) of the car whereby the car value is the market value after the depreciation. This policy is not covered in the third party coverage and has to be purchased together with the third party coverage.
Types of Bike Insurance
There are three main types of two-wheeler insurance policies in India:
1. Third-Party Bike Insurance
As mandated by the Motor Vehicles Act, third-party insurance is compulsory for all bikes. It covers legal liabilities arising from injury, death, or property damage caused to a third party in an accident involving the insured bike.
However, it does not cover damage to your own bike or any injuries sustained by the rider.
2. Comprehensive Bike Insurance
This policy offers extensive coverage, including protection for your bike, third-party liabilities, and personal accident benefits. You can further customize this plan using add-ons such as Zero Depreciation, Roadside Assistance, and Engine Protection.
3. Standalone Own Damage Policy
This policy covers only damages to your own bike due to natural calamities, theft, fire, accidents, or total loss. It does not include third-party liability coverage, so it should be paired with a third-party policy.
Frequently Asked Questions (FAQs)
Q1. What is motor insurance?
Motor insurance is a legally required policy for vehicles like cars, bikes, and commercial vehicles. It protects against financial losses from accidents, theft, or damage.
Q2. What are the types of motor insurance in India?
The three main types are car insurance, bike insurance, and commercial vehicle insurance.
Q3. What does motor insurance cover?
It provides financial protection for vehicle loss or damage due to theft, accidents, fire, or natural disasters. It may also cover personal injuries and third-party liabilities.
Q4. What is third-party liability insurance?
Third-party insurance covers damage or injury caused to another person or property by your insured vehicle. It is mandatory under Indian law.
Q5. What is not covered under a comprehensive policy?
Exclusions include:
- Driving under the influence of alcohol or drugs
- Mechanical or electrical breakdowns
- Damage by unlicensed drivers
- Wear and tear
- Damage due to war or civil unrest
- Depreciation of parts
