Motor Insurance -
Motor insurance is the insurance policy for vehicles. It could include Car Insurance and Two-Wheeler Insurance. Vehicles that are used for commercial purposes, like buses and trucks, are covered by Commercial Vehicle Insurance. It is compulsory to buy auto insurance when you purchase a vehicle.
Benefits of Motor Insurance
- Covers loss or damage occurred to the insured due to accidents.
- Covers loss or damage to the vehicle due to accident, theft, self-ignition, fire, explosion, riots, and natural calamities.
- Covers financial liability occurred due to loss or damage to third party or third party property.
Basic Motor Insurance coverage include
- Loss or damage by accident, fire, lightning, self-ignition, external explosion, burglary, housebreaking or theft, malicious act.
- Liability for third party injury/death, third party property and liability to paid driver.
Third party insurance coverage
The first party is the insured individual. The second party is the insurance company. The third party is another individual. Therefore, a third-party insurance claim is made by someone who is not the policyholder or the insurance company.
Why get third-party insurance ?
The level of cover offered by third-party insurance policies can be good for drivers who are more likely to claim for any damage they cause when driving and for drivers who can afford to pay repair costs for their own car without needing to claim on their insurance.
What is the benefit of third party insurance ?
The third party car insurance cover or liability cover is a policy which protects the car owner or driver of the vehicle against any legal liability, accidental liability, financial loss or property damage, medical expense cover in the event of an injury to or even death of any third party arising out of their vehicle.
Why do I need a vehicle insurance ?
- In fact, according to the Motor Vehicles Act, 1988, it is mandatory for every owner of a vehicle plying on public roads to take an insurance policy to cover the amount, which the owner becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury or any damage to property.
- Vehicle insurance may additionally offer financial protection against theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying, weather or natural disasters, and damage sustained by colliding with stationary objects.
Types of Motor Insurance
Motor insurance can be availed in three forms –
Private car insurance should be first thing to be taken after purchasing a Car. A financial safeguard for a large variety of situations. 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.
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.
As soon as you purchase a two wheeler, getting two wheeler insurance is a mandatory requirement as per the Motor Vehicles Act 1988 and Motor Vehicle Amendment Act 2019. It provides coverage for from any financial loss to the vehicle due to accidental loss or damage, the legal liability towards third-parties in event of bodily injury, death or property damage. It also offers coverage in event of damage due to natural calamities or manmade events.
