What is motor insurance?
Motor insurance refers to policies that provide financial assistance in case of accidents involving your car or bike. Here are what is motor insurance by Technical Dost. Motor insurance can be obtained for three categories of motorized vehicles, which include:
What is motor insurance?
1. Car Insurance:
This type of policy covers privately owned four-wheelers.
2. Two-wheeler insurance:
These plans cover privately-owned two-wheelers, such as bikes and scooters.
4. Commercial Vehicle Insurance:
If your car is stolen, your insurance policy will reimburse you for a portion of the on-the-road cost. If your car is too badly damaged to repair after an accident, you can expect such assistance.
Types of Motor Insurance Policies
Motor insurance policies are classified into three types based on the level of protection or coverage provided, which are as follows:
Third-Party Liability:
The most fundamental type of auto insurance in India. As per the Motor Vehicles Act 1988, this is the minimum mandatory requirement for all motorized vehicle owners. Due to limited financial support, premiums for such policies are also low.
These insurance plans pay only the financial liability to the third party affected by the accident, ensuring that you do not face legal trouble due to the accident. However, they do not provide any financial assistance for the repair of the policyholder’s vehicle after an accident.
Comprehensive coverage:
In contrast to third-party liability insurance, comprehensive insurance plans offer more coverage and protection. Apart from covering the third-party liabilities, these plans also cover the expenses incurred for repairing the damage caused to the policyholder’s own vehicle due to the accident.
In addition to this, comprehensive plans also offer payment in the event of damage to your vehicle due to fire, man-made and natural calamities, riots, and other such instances. Lastly, if you have comprehensive cover, you can recover the cost of your bike if it is stolen.
One can opt for a number of add-ons with their comprehensive motor insurance policy that can make it look better. Zero depreciation cover, engine and gearbox protection cover, consumable cover, breakdown assistance, and other options are available.
Own Damage Coverage:
This is a type of auto insurance offered by insurance companies to their customers. Furthermore, such a scheme is only available if you purchase a two-wheeler or a car after September 2018. The vehicle should be brand new and not old.
You should also keep in mind that this standalone personal damage cover is only available if you already have a third-party liability motor insurance policy. With Own Damage Cover, you basically get the same benefits as a comprehensive policy without the third-party liability portion of the policy.
The Benefits of Motor Insurance Policies
Cars and bikes are getting more expensive with each passing day. Living without proper insurance at such times can result in serious financial loss to the owner. Some of the advantages of buying such a plan are listed below.
1. Prevents legal hassle:
helps you avoid any traffic fines and other legalities that you would otherwise be required to endure.
2. Covers all third-party liabilities:
If you injure someone or damage someone’s property in a car accident, the insurance policy will assist you in effectively covering the monetary loss.
3. Financial assistance for vehicle repair:
If you are involved in an accident, you will need to spend a significant amount of money on vehicle repair. Insurance plans limit the amount of time that you can make repairs immediately.
4. Theft/Loss Coverage:
If your vehicle is stolen, your insurance policy will assist you in recovering a portion of the vehicle’s on-road price. You can expect similar assistance if your vehicle is damaged beyond repair due to an accident.
Additionally, individuals who own a commercial car or two-wheeler can also avail of tax benefits if they pay a premium for that vehicle. Hope you have got the answer to What is motor insurance?