Motor Insurance- Different Types Available In Market

Motor Insurance- Different Types Available In Market

One of your most valuable possessions is your vehicle. Therefore, you must show it the affection and attention that it deserves. Additionally, as implied by the name, it is insurance that covers all varieties of motor vehicles, including motorcycles, cars, jeeps, commercial vehicles, etc.

The Motor Vehicles Act of 1988 was enacted by the Government of India to make motor vehicle insurance mandatory throughout the nation in order to ensure that our roads become safer and better for everyone. This law’s main objective is to safeguard car owners from suffering personal injury or property damage and to guarantee that they and their families will get financial support in the event of an accident.

Importance of Motor Insurance in India

Did you know?

Knowing the different factors that affect you as a car owner has never been more important than it is now, according to the 2019 change to the Motor Vehicle Act. One important topic that you should be aware of is motor insurance.

Anyone can cause an accident, therefore it’s important to get motor insurance to protect both you and your vehicle. Many insurance companies include medical insurance as part of the policy in addition to purchasing insurance for car destruction and damage. In this way, if something happens to you while driving, your insurance coverage would cover all related costs. Third-party liability is now a benefit included in motor insurance. Due to this advantage, your insurance policy may also provide coverage for any injuries a person sustains as a result of an accident they are engaged in.

Even if younger drivers have more expensive insurance rates, it is advised to buy motor insurance coverage on your behalf if you intend to do so for your child’s vehicle. Since many insurance providers in India provide loyalty discounts, they might lower the cost of your car insurance premium if you’ve previously purchased another insurance policy from them.

Types of Motor Insurance

There are three types of insurance – Private Car Insurance, Two-wheeler Insurance, and Commercial Vehicle Insurance. Let us take a look into what each type of insurance covers.

1. Private Car Insurance Policy

The Government of India requires this type of motor insurance to be purchased for any private vehicles an individual owns. It includes coverage for theft, natural catastrophes, accidents, fire, and other damages as well as any injuries to the owner. Injuries and damages to third parties are also covered.

Here is the list of the benefits of choosing a private car insurance policy.

  • Damage to Insured Vehicle: You are covered if your car sustains damage from an accident or a fire. Additionally, your insurance policy covers losses caused by riots, strikes, or theft of the vehicle. Another advantage of having car insurance is that it protects against loss or damage, saving you money and preventing financial obligations.
  • Own Damage Cover: The availability of personal accident coverage is another benefit of auto insurance. Protection against accidental death and permanent complete disability is offered by personal accident insurance. Your own damage insurance covers the cost of repairing or replacing any parts of your automobile that are damaged in an accident.
  • No claim bonus (NCB): The no-claim bonus is a significant benefit of having vehicle insurance (NCB). Every year a customer goes without filing a claim qualifies them for this benefit, which is available as a discount on the price and makes auto insurance even more inexpensive.

2. Two-Wheeler Insurance Policy

The Government of India requires two wheelers like scooters and bikes to be insured under a two-wheeler insurance policy. The two-wheeler is covered for damage brought on by mishaps, catastrophes, fire, theft, and other events, as well as for third-party losses and injuries. Additionally, it comes with required and optional personal accident insurance for the owner rider, and passengers.

Let’s take a look at the following benefits of choosing a two-wheeler insurance policy.

  • Coverage Against Third-Party Liabilities

By purchasing two-wheeler insurance, you safeguard your finances from third-party liability. According to The Motor Vehicles Act of 1988, purchasing two-wheeler insurance is required because of this. If you use your insured bike to injure or damage someone else’s person or property, you may be held liable as a third party.

  • Helps Stay Legally Compliant

According to the Motor Vehicles Act of 1988, if you want to lawfully operate your vehicle on Indian roads, you must at the very least obtain a third-party bike insurance policy. Penalties may apply if this law is broken. Although obtaining at least third-party bike insurance is required by law, it is vital to keep in mind that this does not give you substantial protection against your damages in an accident. Consider purchasing a complete bike insurance policy for better protection.

  • Gives Protection Against Own Damage

One of the main benefits of bike insurance is that a thorough bike insurance plan will cover your personal damages. You truly gain by paying a relatively little cost for protection because these damages frequently amount to lakhs of rupees. Additionally, customized bike insurance is available. For a slight premium increase, you can add different riders to your insurance policy to customize the coverage to your needs.

3. Commercial Vehicle Insurance

Business owners must insure their vehicles if they want to maintain the viability of their enterprise. Packaged commercial vehicle insurance policies are offered by general insurance providers to shield businesses from potential financial loss to the vehicle due to accidental loss or damage as well as from legal responsibility for third parties’ property damage, bodily injury, or death as a result of any accidents involving the vehicle. Commercial vehicles such as trucks, private and public carriers, trailers, taxis, 3-wheelers, buses, and miscellaneous and special types of vehicles such as agricultural mobile rigs, shovels, grabs, tractors, and excavators, among others, are covered by insurance.

The following are the potential benefits of choosing commercial vehicle insurance.

  • Coverage In Case of Theft

These days, theft is a prevalent crime. If you have a car that you use for business, getting a commercial auto insurance policy can enable you to receive compensation if it is stolen. The settlement sum will be the same as the individual car’s IDV.

  • Protection In Case of Natural Disaster

Natural calamities are unpredictable and out of our control. They frequently do great harm to both people and their possessions. If you have business auto insurance, you will receive a settlement sum if your car is lost or damaged as a result of a natural disaster (earthquake, flood, etc.).

  • Towing Assistance

Your car is a machine like any other, and machines have problems. Your automobile could occasionally run out of batteries or develop a technical problem in the middle of a trip, leaving you stranded. Towing support for your vehicle will be available if you get commercial auto insurance coverage in such circumstances.

Conclusion

Due to the increased awareness of the importance of both personal and vehicle safety in India, purchasing a car insurance policy has transcended the status of necessity.

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