What's Motor Insurance? Its types, importance, and Claim Method


Motor insurance is a type of policy that provides financial aid when an accident involves your vehicle or bike. The government requires this to ensure your security and the safety of other people.

What's Motor Insurance?

Motor insurance is an exclusive insurance policy designed to help car owners safeguard their assets from financial losses from theft or vehicle damage. It doesn't matter if you own an individual vehicle or commercial vehicle, or two-wheelers; you can buy a motor insurance policy.

The insurance covers the damages to the vehicles and the Third Party Liability as per the Comprehensive Vehicle Policy. It also covers personal accident that occurs to the drivers, passengers, assistants, and conductors. This coverage extends to commercial or public vehicles damages caused by fire and lightning, natural disasters like storms, floods,

Many reasons could cause vehicle injuries and accidents, and, sometimes, it happens at no fault of the driver. This is especially true in cases where a lot of cars and roads are congested all over.

Different types of Motor Insurance Policy

Based on the level of protection or cover offered, motor insurance policies can be classified into three kinds that are:

3rd-Party Policies

It is the most basic kind of motor insurance coverage in India. It is the minimum compulsory condition for all motorized vehicle owners stipulated by the Motor Vehicles Act of 1988. Because of the small amount of financial assistance available, the cost of these policies can also be meager.

The insurance plans pay the financial obligation to the party liable in the accident, ensuring that you don't face legal trouble due to the incident. However, they don't offer financial assistance to fix the insured's vehicle following an accident.

Comprehensive Cover Policy

When you have comprehensive insurance for your car, you can enjoy the benefits of Third Party Liability insurance and own damage insurance. The name implies it provides comprehensive, all-encompassing protection for your vehicle and you. Compared with the third-party liability option, comprehensive insurance plans give you more security and protection.

In addition to covering third-party obligations, these policies also cover the costs of repairing damage to the policyholder's vehicle in the event of an accident.

Furthermore, comprehensive plans include a guarantee of compensation in the event your vehicle suffers damage caused by fire, artificial and natural catastrophes, riots, and other situations. In addition, you can claim the cost of your vehicle should it be stolen, provided you have a complete protection plan in place.

You can also add additional add-ons to their comprehensive motor insurance policy to enhance the overall coverage. The available add-ons include zero depreciation insurance, protection for the engine and gearbox coverage, consumable insurance, and breakdown assistance.

Own Damage Insurance Policy

A car insurance policy that covers your damage policy will protect you against damage to your vehicle by incidents like theft, fire, and so on. It is a specific type of motor insurance that insurance companies offer to their customers.

Furthermore, you're eligible for this program only when you bought the car or two-wheeler on or after September 18, 2018. The car must be new and not be a second-hand vehicle.

It is important to remember that you are eligible to use this separate own damage insurance just if you have a third-party auto insurance liability policy. With your damage insurance, you get the same benefits as a full-coverage policy without the third-party liability component in the insurance policy.

What is the best time to purchase Motor Insurance Policy?

If you are planning to buy a brand new car, begin looking for an insurance policy for your motor immediately. It's not wise to delay until the end because choosing the right policy to meet your requirements can take some time.

The earlier you begin, the more critical choices you'll have to pick from. It is also not recommended to take the first policy you see. Make sure you do your homework and collect all the details about motor insurance you can from a variety of sources.

You can purchase the policy on an insurance provider's site or browse the website of insurance aggregators. Be sure to check out the different policies and premiums.

In the same way, you should be extra attentive to exclusions and read reviews on the internet about the process for claiming. You aren't likely to find yourself with an insurance company with a miserable claim procedure.

The importance of Motor Insurance Policy

Motor (Care/ Vehicles) has become more essential than luxurious. Planning for long-distance travel, most travelers prefer the comfort and ease of automobiles instead of other modes of transportation. Motor insurance policies are equally valuable and crucial if you decide to purchase an automobile or a vehicle.

A good insurance policy is now necessary for everyone as insurance for motor vehicles is required in most nations. Because of the high prices, many consumers consider it worth the money. But, shortly, motor insurance will be a crucial and worthwhile investment. Motor insurance is now a necessity for anyone who owns an automobile, no matter how good they drive or how skilled a driver they may be.

Accidents can happen to anyone, but motor insurance policies help ensure that you as the car are protected. Many insurance companies don't just purchase insurance policies for damage and damages to cars but additionally opt for medical insurance as a component of the policy. If something happens to you or your vehicle, the insurance policy will cover all expenses related to that too. Today, an additional benefit of motor insurance is the third liability for third parties. This benefit means that your insurance plan covers anyone who suffers injury in an accident that he's involved in.

The most effective motor insurance policy will cover the loss or damage to your vehicle due to theft or burglary, natural disasters, riots, criminal acts, fires and explosions, and so on.

Many motor insurance policies come with an option called the no-claim bonus. It is available to the point that you haven't made a claim on insurance for a considerable time. In that situation, the insurance company will give you discounts on the cost of the premium.

The fundamentals of motor Insurance Exclusions

There are a few exclusions to Motor Insurance that can't raise any claim against an insurance plan. If you're,
  • Driving your car with no valid driver's license
  • Driving the vehicle while under the effects of alcohol or drugs
  • The vehicle can be used to carry out an illegal act

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