Motor Insurance: Necessity for a Safe Ride

Motor insurance provides protection to your vehicle (car, truck, etc.) against loss or damage that has caused due to unforeseen risks. It basically covers financial losses that may arise from accidents, thefts, or natural/man-made calamities. Motor Insurance is also known as vehicle insurance/ car insurance/ Auto Insurance. In India, carrying Third Party Insurance is a legal requirement. The Motor Vehicles Act, 1988, mandates that driving a vehicle without motor insurance is a legal offence.

Types of Motor Insurance

Types of Motor Insurance or Car Insurance can be broadly classified as below-

Private Car Insurance

Car Insurance gives coverage against accidental damages or losses caused to your own car or to the third party. It is compulsory for all the car owners to have a motor/car insurance. The amount of premium for this policy would depend on the make & value of the car, state from where the car is registered and manufacturing year.

Two Wheeler Insurance

Two Wheeler insurance protects the owner of the vehicle from any unforeseen incidents like an accident. A two wheeler insurance policy is provided by any of the authorised Insurance companies registered under the IRDAI i.e. The Insurance Regulatory Development Authority of India.

Third Party Insurance

As the name suggests, this covers the third person who has been injured in an accident. Third party insurance covers your legal liability arising due to the damage caused by you to a third party only – death, bodily injury and damage to third party property – while using your car. This policy does not cover loss arising from damage caused to the vehicle or the insured.

Having third party insurance keeps you away from any legal repercussions arising out of the third party liability. Carrying third party insurance is compulsory by the law of India.

Comprehensive Insurance

Comprehensive Insurance is a type of insurance that provides cover against the third party plus loss/damage occurred to the insured vehicle or to the insured by means of bodily injury. This scheme also covers damages caused to the vehicle due to thefts, legal liabilities, personal accidents, man-made/natural calamities, etc. Since this policy offers a wide coverage, even though the premium cost is higher, consumers tend to opt this policy.

Commercial Vehicle Insurance

As the name indicates, these are the vehicle used for commercial purposes and not for personal purposes. This policy provides cover for all the vehicle that carry goods, like Tempos, Trucks, etc. A commercial vehicle insurance ensures protections against financial losses that may arise due to third party liability. It also pays for damages caused to your own vehicle.

Motor Insurance: Covers

These are the following perils covered in a Motor Insurance policy.

• Man-made calamities such as burglary, theft, riot, strike, explosion, terrorism, etc.
• Natural calamities such as typhoon, earthquake, flood, fire, lightning, storm, etc.
• Third party legal liability
• While in transit by road, rail, air or waterway

Motor Insurance Claims

The Motor insurance claim process will mainly depend upon the type of vehicle and nature of loss that has incurred.

To process the claim, the insured is required to submit a detail of estimated loss to the insurer. The insured also needs to submit documents of Driving License, Police Report, Final bill of Repairs and Fitness Certificate. The insurer then carefully inspects the damages caused to the vehicle. When it comes to third party claim, the complete matter is transferred to advocate.

Car Insurance Companies

Some of the top insurance companies who provide car/motor insurance are-

• Bhartix Axa general insurance
• ICICI Lombard General Insurance
• TATA AIG General Insurance
• The Oriental Insurance
• The New India Assurance
• HDFC ERGO General Insurance

The most important step while buying a car is to avail the insurance policy immediately. Before buying a policy, make sure you look for an insurer who provides a wide range of features such as cashless claims, adequate covers, 24-hour assistance, etc. Most important, compare motor insurance policies with different insurers and then opt for a quality plan!