Types of Motor Insurance

No other technology – apart from construction and telecommunications – has had such a profound impact on mankind as automotive technology. From its humble beginnings in the late nineteenth century and a global spread through the whole of twentieth century, the automotive sector has grown rapidly and has witnessed rapid transformation. With different types of automobiles like two-wheelers, three-wheelers, personal cars, commercial vehicles etc. so ubiquitous, it is impossible to imagine life without automobiles.

Travelling by vehicle is inevitable and a routine for most of us now. While they are essential for commuting, they also expose us to multiple risks – bodily as well as financial. Hence, security becomes a necessity in case of vehicle damage, loss of vehicle, third-party liability, etc. A Motor Insurance safeguards your finances and gives you the desired coverage in the event of such incidents. A comprehensive Motor Insurance plans help you secure your vehicle from financial liabilities or loss of motor vehicle that you may face.

In extreme situations, automobile owners may find themselves saddled with high financial liability if proper care is not taken. What is the way out for automobile owners against such potential risks related to automobiles? What can help in such situation is a Motor Insurance. Motor Insurance deals with the insurance covers for the loss or damage caused to the automobile or its parts due to natural and man-made calamities. It provides accident cover for individual owners of the vehicles while driving and also for passengers and third-party legal liability.

The answer is a Motor Insurance. A Motor Insurance cover could be purchased for cars, trucks, motorcycles, and other road vehicles. Motor Insurance offers protection to the vehicle owner against (i) damages to his/her own vehicle and (ii) any Third Party Liability (iii) Personal accident to owner while driving or travelling is a car along with cover to driver and passengers. Third Party Insurance is a statutory requirement in India. The owner of the vehicle is legally liable for any injury or death to third party life or damage to property caused by or arising out of the use of the vehicle in a public place. Driving a motor vehicle without insurance in a public place is a punishable offence in terms of the Motor Vehicles Act, 1988.

Automobiles for which insurance cover is available in India can be broadly classified into three types:

Private Car Insurance – Private Car Insurance should be first thing to be taken after purchasing a Car. A financial safeguard for a large variety of situations, Private Car Insurance is one of the most important purchases to make. Whether it is a natural disaster such as an earthquake or flood; or somebody damages or steals the car, a Car Insurance takes care of it all. With compulsory factors such as third-party liability, one can ensure that any damage occurred to another person’s life or property by his vehicle will be covered in a claim. You can also opt for the Motor Insurance Add-on plans, such as zero depreciation, engine & gear box protector, emergency assistance, cost of consumables etc. which enhances your coverage for better protection, in addition to your standard motor insurance policy.

Commercial Vehicle Insurance – To keep the business going, it is imperative for business owners to have the vehicles owned by them insured. General Insurance providers offer packaged commercial vehicle insurance policies which protect businesses from potential financial loss to the vehicle arising out of accidental loss or damage, the legal liability towards third-parties for bodily injury, death or property damage on account of any accident involving the vehicle. Insurance is available on commercial vehicles like trucks, Private as well as Public Carriers, Trailers, Taxis, 3-wheeler Autos, Buses, Miscellaneous and Special Types of vehicles – Agricultural Mobile Rig, Shovels, Grabs, Tractor, and Excavator etc.

Basic Motor Insurance coverage include:

  1. Loss or damage by accident, fire, lightning, self-ignition, external explosion, burglary, housebreaking or theft, malicious act.
  2. Liability for third party injury/death, third party property and liability to paid driver
  3. On payment of appropriate additional premium, loss/damage to electrical/electronic accessories can be covered.

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