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What Is Motor Insurance

Insurance for motor vehicles is a type of policy that provide financial aid for accidents that involve your bike or car. Motor insurance is offered for three kinds of motorized vehicles, which include:

  • Car Insurance-Personally owned four-wheeler cars are covered by the policy.
  • Two-wheeler insurance Two-wheeler InsurancePersonally owned two-wheeler automobiles, like scooters and bikes are covered under these plans.
  • Commercial Vehicle Insurance– Commercial Vehicle insurance if you own a car that is employed for commercial use, you should to purchase insurance for that. These policies guarantee that your vehicles for business are in good condition which reduces the amount of loss.

 

Types of Motor Insurance Policies

 

Based on the level of protection or cover offered, motor insurance policies can be classified into three kinds that are:

  • Third-Party Liability Third-Party Liability HTML0 – This is the simplest type of motor insurance in India. It is the minimum compulsory condition for all motorized automobile owners, in accordance with the Motor Vehicles Act of 1988. Due to the insufficient financial aid available, the prices for these insurance policies can also be expected to be quite low. They only cover the financial responsibility to the person who was a victim of the incident, making sure that you are not liable for legal issues arising from the incident. They don’t provide any financial aid to repair the vehicle of the policyholder after an accident.
  • Comprehensive Coverage In comparison to the third-party liability option comprehensive insurance plans provide better security and protection. Apart from covering third-party obligations as well, these plans provide coverage for the costs of repair of damage to the insured’s vehicle in the event of an accident. In addition, comprehensive plans include a guarantee of payment in the event your vehicle is damaged caused by fire, man-made natural catastrophes as well as riots, and other circumstances. In addition, you are able to recover the cost of your bike in the event of theft, provided you have a complete insurance policy in place. There are various add-ons to their motor insurance policy to enhance the overall coverage. These add-ons can include zero depreciation coverage motor and gear-box protection cover, consumable coverage, and breakdown assistance, among others.
  • Personal Damage Insurance The Own Damage Cover is a special type of motor insurance that insurance companies provide to customers. Furthermore, you’re eligible for this plan only if you bought the car or two-wheeler on or after September 18, 2018. The car must be new and not an old one. It is important to be aware that you are able to take advantage of this individual own damage coverage solely if have a third-party motor insurance policy for liability in place. With your own damage insurance, you get basically the same benefits of an insurance policy that is comprehensive but without the third-party liability component in the insurance policy.

Benefits of Motor Insurance Policies

The cost of bikes and cars is becoming more expensive each day. In this scenario the absence of insurance could lead to massive financial losses on the part of the owner. Here are a few benefits that come with purchasing a insurance plan.

  • Eliminates Legal HassleIt also Legal Hassle-Helps you avoid tickets, fines or other legal responsibilities that you’d otherwise have to pay.
  • meets all third-party liability requirements If you hurt anyone or damage their property in a vehicle accident and the insurance policy assists you pay for your financial loss, effectively.
  • Financial Assistance for Repairing Your Own vehicle(HTML0) HTML1After collisions, you’ll need to shell out a significant amount for fixing your vehicle. Insurance plans help limit these expense out of pocket which allows you to complete repairs as soon as you can.
  • Insurance for loss or theftIf your car is stolen and your insurance policy is canceled, it will assist you in reclaiming part of the car or bike’s road-side price. You will also receive similar help when your vehicle has been damaged beyond repair as a result of incidents.

In addition, people that own commercial vehicle or two-wheeler may also benefit from tax deductions when they pay for the insurance premiums of the vehicle.

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