What is Motor Insurance or motor vehicle Insurance
We have come a long way since those days when Motor-owners were looked at with a sense of uneasy feelings. In present times, these four-wheeler vehicles have become a sheer necessity and very much in the grasp of common men. Along with the Indian economy, even the income of Indians has increased substantially in the last decade. The sale of Motors in India is currently at an all-time high.
So, you need to ensure the safety of you and other people on the road. Natural calamities may have your Motor damaged or lost or your Motor might cause an accident that lead to death of people in another Motor or in the street or destruction of third party's property. All these unfortunate situations can put you in a lot of trouble unless you remain protected beforehand.
Why you should go for Motor Insurance
There are several reasons to make Motor insurance and it is must for every driver. In India insurance covering third party is mandatory for every driver. If you are caught without the insurance, you will be required to pay the penalty and can also lose your driving privileges. Although, it is up to you to keep your own Motor under cover but most Motor-owners avail a comprehensive Motor insurance plan to keep their own Motors covered from unforeseen circumstances to avoid financial losses. With the arrival of online Motor insurance policies now it is also effortless to make a purchase and to renew. So, you have to get Motor insurance for you, your family and friends and also for the people on the road.
Types of Motor Insurance
There are essentially two different types of Motor insurance policies in India- Third Party Liability Insurance (Mandatory) and Comprehensive Motor Insurance (Optional).
Third Party Liability Insurance
This type of Motor insurance protects you from paying for the third party damages bodily injuries if you are responsible for the accident. The loss due to death and injuries of policyholders is not covered in this type of Motor insurance plan. In India, third party motor insurance is mandatory for all Indians under 1988's Motor Vehicle Act. So, you have to opt for it even if you don't want to avail the comprehensive one.
Comprehensive Motor Insurance
This type of policy provides the coverage offered by the above mentioned third party liability insurance along with the coverage for damage to your vehicle, bodily injuries, and theft. This policy is not mandatory for any driver. If any accident occur the driver will not be paid for his/her Motor or himself/herself or any damage. The major difference between comprehensive and third party motor insurance policies is Motor-owners who avail third party Motor insurance stay financially unprotected if the vehicle of the policyholders gets completely or partially damaged.
Key Features of Motor Insurance
- Access to hundreds of network garages for cashless services throughout the country
- 24 x 7 road-side assistance, like towing, fuel, mechanicâ€™s service, and even accommodation if you are stranded due to problems in your Motor
- Optional coverage to cover the bodily injuries of co-passengers
- Zero depreciation coverage
- Instant issuance of digitally signed policy documents when you purchase the policy online
- NCB (No Claim Bonus) while renewing the policy if you do not make any claim during the policy period
- Transfer NCB bonus if opting for Motor insurance policy from a different provider
- Discounts if you buy anti-theft devices that are approved by ARAI
- Multiple add-ons cover to provide additional benefits.
Benefits of Motor Insurance
Motor insurance can help offset the loss of huge sum in the following manner: Provides benefits to survivors when an accident results in death. It covers lawsuits, including legal fees brought against you as the result of an accident. It covers the bills of vehicle repairs due to damage caused in an accident.
- All the states in India require a minimum amount of insurance. Motor insurance can help offset the loss of huge sum in the following manner:
- Provides benefits to survivors when an accident results in death.
- It covers lawsuits, including legal fees brought against you as the result of an accident.
- Covers the bills of vehicle repairs due to damage caused in an accident.
- Covers damage caused by other than an accident for example, theft, fire, etc.
- Additional discounts: Motor insurance policies allow premium discounts for theft or for owning more than one policy with the same insurer. It also provides added advantage to extend coverage to others driving your Motor with your permission.
- No Claim Bonus: If you do not make a claim during the policy period, a No Claim Bonus is offered on renewals provided you fulfill certain terms and conditions.
Motor Insurance Coverage
Comprehensive Motor insurance
The comprehensive Motor insurance policy provides policyholders with the following coverage on their insured vehicles.
- Natural calamities like earthquake, floods, hurricane, etc.
- Man-made calamities like burglary, riots, strikes, etc.
- Personal accident cover: It provides accident cover to the owner or driver and the passengers while travelling in the vehicle.
Third Party Insurance
This policy only covers the damage done by your vehicle to other vehicle or property such as:
- Any long-lasting or permanent injury/death of a person.
- Any damage caused to any other insured property caused while anyone is driving the insured vehicle.
What is not covered under Motor insurance?
- Wear and tear or aging of the vehicle.
- Depreciation or any consequential loss.
- Mechanical/electrical breakdown.
- Wear and tear of consumables like tires and tubes.
- Insured vehicle being used for purposes other than mentioned in the limitations of usage in the agreement.
- Vehicle being used outside the geographical boundaries of India.
- A person driving any vehicle without a valid licence.
- A person driving the vehicle under the influence of any kind of drugs or liquor.
- Loss/damage encountered due to war, mutiny or nuclear risk.
Eligibility and Criteria
*You must have a valid driverâ€™s license
To obtain an auto insurance policy, you need to have a valid license. If you intend to list any other drivers on the policy, they will also need to have a valid driverâ€™s license.
- Be a resident of India: All drivers for the insured Motor must reside in India
- Past losses or convictions: Eligibility is also based on things like prior accident record as an example and will vary depending on whether you are looking for a new Motor insurance policy or wish to renew an existing policy. Other restrictions may arise from past convictions and can vary depending on when your last conviction occurred and the nature of the conviction. Here are the restrictions that may prevent you from getting Motor insurance
- You have not been disqualified from driving at any time in the last 5 years
- You have not been convicted of any non-motor criminal offence, have any criminal prosecutions pending or received a police caution. Convictions spent under the Rehabilitation of Offenders Act 1974 are excluded.
- You have no connection with any of the following businesses or professions, Foreign Service or diplomatic personnel, gambling industry, general dealers, market traders, mini-cab drivers, professional sports, salvage or scrap merchants.
Required Document for Motor Insurance
To buy Motor insurance, you will need-
- Copy of the driving license of person purchasing the insurance.
- Copy of registration certificate of the Motor.
- Declaration page of the insurance policy if you already have a Motor insurance.
- Duly-filled insurance form.
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