Motor Insurance
What is Motor Insurance?
Motor insurance is similar to any other insurance coverage, it is mandatory. As the name implies, it is insurance for all types of vehicles like motorcycles, cars, jeeps, commercial vehicles ets... The government has made motor insurance mandatory for your protection and the safety for others.
Types of Motor Insurance in India
Private Insurance Policy:
The
Government of India requires automobile insurance for any private car Or Two wheelers owned by
a person. Private insurance policy protects the vehicle from damage caused by accidents,
fire, natural calamities, theft, and owner from personal injury. It also
safeguards the third party against any losses or injuries.
Commercial Vehicle Insurance:
All
vehicles that are not utilized for personal reasons are covered by a commercial
vehicle insurance policy. This sort of Insurance covers any automobiles used
for business purposes. Trucks, buses, heavy commercial vehicles, light
commercial vehicles, multi-utility vehicles, agricultural vehicles, taxis/cabs,
ambulances, auto-rickshaws, and other vehicles are covered by this Insurance.
Types of Car Insurance
Comprehensive Policy:
Motor
vehicle owners in India have a multiple of insurance choices available to them.
The main purpose is to keep car owners safe from damage and accidents.
As the
name implies, a comprehensive automobile insurance policy covers every
imaginable component of the vehicle insured as well as the policyholder's
interests. Yet, it is preferable to be informed of the numerous components that
these Insurance plans cover. Comprehensive Insurance covers a wide range of
claims, including Third-party or damage to the vehicle caused by accident or
theft.
Add-ons For a comprehensive insurance policy:
There
are certain add on covers which can be opted under comprehensive insurance as
listed below:
1) Zero Deprecation :
This is a frequent add-on
protection, sometimes known as bumper-to-bumper Insurance. This optional cover
is available for all types of vehicle. A zero depreciation cover is critical in
calculating claim settlements or reimbursements. When your Motor insurance company
pays the claim or reimburses your bill payments, they deduct the car's
depreciation value. As a result, no insurance will pay the entire claim amount.
If you have this coverage, however, the Depreciation factor will not be taken
into account when determining claim settlement. This extra cover is perfect for
automobiles under the age of five years.
2) Roadside Assistance (RSA):
You will require immediate assistance if your vehicle breaks
down while you are traveling, whether on highways or city streets. On the off
chance that you live in a far off place where finding a maintenance is
troublesome, emergency aides add-on inclusion can prove to be useful.. Simply
contact the insurer and notify them your problem. If the engine fails, the
insurer will arrange for towing or garage service through its garage network.
Few insurance provider covers this as part of the standard Insurance, confirm it
before buying your policy otherwise get this an add-on. cover
3) Tyre Protection:
Tyre Protect is an add-on that protects against damage such as
in-tire bulges, bursting of tyres, cuts on a tyre caused by accident or event
4) Consumable add-on Cover:
This consumable add-on includes consumable parts it is not
covered by the basic Insurance, such as grease, air conditioner gas, bearings,
filters, engine oil, brake oil, nut, bolt, screw, washers etc…
Third-Party Insurance:
For All
vehicle owners in India it is mandatory to have a third-party car insurance.
These insurance plans, in essence, safeguard the policyholder's interests from
harm caused by the policyholder to property or individuals.
Third-party
coverage can be stated to help decrease the policyholder's risk and liability
in a various situations.
Own Damage Insurance Cover Policy:
The own damage insurance policy, or the collision damage policy,
covers the cost of repairs to the car or reimburses for damage caused. The cost
of collision coverage, the age and the value of the vehicle will be taken into
consideration to calculate the premium value. IDV is based over the market
value of the car. When there is a claim against this kind of policy, the
maximum sum payable under the policy is given by the insured declared value
after depreciation.
