Motor Insurance: Everything you need to know.!!
As we know that prevention is better than cure, it is better for us to stay prepared before any improbable event. A motor insurance policy provides financial security against any damage arising from accidents and other threats to your four or two-wheeler. The purpose of this policy is primarily to provide financial protection against any physical damage or bodily injury due to traffic collisions, beforehand. Insurers value the insurable interest, and as a result, indemnity is a very significant principle under this strategy. There is the potential liability associated with vehicle incidents. This insurance facility provides you an easy way out of the uncertain, horrific events related to your vehicle and provides you a tranquil landing without any fuss or worry. Motor insurance policies are mandatory in India. Driving any vehicle without any insurance is an irresponsible task. This could lead to some unavoidable risks along with some penalties. Being secured is a smart choice that must be abided by the aware citizens.
Importance of Motor Insurance in India
1. Insurance coverage for death
After an accident, death is undoubtedly the worst outcome. Your untimely death can put your family in financial turmoil if you are the sole provider for the family. Nonetheless, a motor insurance pay-out can help your family remain financially independent. It provides you the chance to receive your silver lining along with some help amidst the loss.
2. In case of mishap, provides financial protection
When your vehicle is damaged by an accident, earthquake, lightning, flood, etc., you may have to spend a lot of money to get your vehicle in shape. With motor insurance, you will have your financial coverage. Additionally, vehicle insurance covers expenses incurred in the event of bodily injury. It pays for your hospitalization expenses if you are involved in an accident involving your vehicle.
3. Legislative requirement
Motor insurance is mandatory for all vehicles on Indian roads, especially third-party liability insurance. Those without insurance are subject to severe penalties. The benefit of having motor insurance is that we have a backup plan for our vehicle to sustain any possible damage. In that way, we stay prepared beforehand from any rigorous loss.
4. Ensures third-party liability
One of the key reasons why Motor Insurance is so essential is that it ensures third-party liability. Your vehicle is covered for third-party liability in the event of damage suffered by a third party. It means your insurer will cover the costs of treatment incurred by a third party, thus protecting you from legal action.
Motor Insurance Policies
1. Third Party Car Insurance Policy
According to the Motor Vehicles Act of 2019, third party coverage is compulsory. Your car would be illegally driven without it, resulting in a fine and/or penalty. There is a recent surge in the amount of fines for these violations under new motor laws. Legal liability protection covers any damage your vehicle causes to a third party. An example of Third Party insurance is covering injury or death caused to a third party by your vehicle, as well as damage to a third party’s property. This policy has a special feature. A claimant does not have to prove negligence on the part of the driver who caused the accident under the Motor Vehicles Act. Typically, a Third Party Liability Insurance is only available to third parties. Vehicle damage and theft won’t be covered within this policy. Additionally, the premium is quite affordable.
2. Own Damage Car Insurance Policy
When you have Own Damage Auto Insurance, you are protected against damage to your car caused by accidents such as fire, theft, etc. In the event of an accident, an own damage cover reimburses you for the cost of repairing or replacing damage to your car. Damage to your car in case of an accident, theft, or malicious act is covered by this policy. It covers damage from natural disasters like floods, earthquakes, fires, etc., as well as man-made disasters like vandalism and riots. Car owners can also include their own damage with the 3rd party insurance as per their choice.
3. Comprehensive Car Insurance Policy
The benefits of Comprehensive Car Insurance include Third Party Liability coverage as well as Own Dam age coverage. Your car and you are protected from beginning to end by this comprehensive solution. In addition to covering theft, this policy also includes damage for a variety of reasons. You can be at ease knowing that your car will be taken care of if it gets stolen while you have this cover. Vandalism, fire damage, floods, damage from natural calamities like tornadoes, wind storms, glass breakage (e.g. windshield), damage caused by falling objects are some of the perils that comprehensive insurance offers coverage for. You can also add on additional covers like Personal Accident, Electrical Appliances, Zero Depreciation and more.
Types of vehicles covered under Motor Insurance
1. Private Car Insurance
Owners of private automobiles who use their vehicles for personal reasons may purchase a private car insurance policy. The policies are available in a variety of forms. When you are the registered keeper and owner of your own car, you are covered by private car insurance. You are exempt from this rule if you are named as a driver on someone else’s private car policy, or if you take out temporary cover. If you have private car insurance, you can drive for social, domestic or pleasure purposes – in other words, for your own personal, private use. Commuting is also covered by most of these policies.
2. Two Wheeler Insurance
According to the Motor Vehicles Act 1988 and the Motor Vehicle Amendment Act 2019, as soon as you purchase a two-wheeler, you must obtain two-wheeler insurance. In case of an accident or damage to the vehicle, it covers any financial loss to the vehicle, as well as any liability towards third parties in the event of bodily injury, death, or property damage. Natural disasters and man-made events are also covered under this program.
3. Commercial Car Insurance
When you cause an accident involving a company vehicle, your commercial auto insurance will cover damage to the vehicle and bodily injury. This policy is as crucial as the ones that are mentioned above. A commercial auto policy includes five types of insurance coverage: Personal liability, property damage liability, collision liability, and comprehensive coverage. This type of insurance is applicable for business purposes where the driver doesn’t own the vehicle, be it of any kind. Taxi drivers and business owners should purchase commercial auto insurance.
3.1 Goods Carrying Vehicle Insurance
This type of insurance is designed to cover commercial vehicles used for transporting goods from one place to another. Since vehicles are more likely to be involved in accidents, collisions, thefts, natural calamities and fires, goods with vehicle insurance can cover losses and damages.
3.2 Passenger Carrying Vehicle Insurance
Commercial vehicle insurance policies designed to cover passenger carrying vehicles are also known as passenger carrying vehicle insurance policies. Passenger carrying vehicle insurance provides protection against damages and losses resulting from accidents, natural catastrophes, and fire, among other unforeseen events.
Let’s wrap it up!
It is obligatory to have a Motor Insurance. Additionally, it provides coverage for a variety of vehicles, such as motorcycles, cars, and even commercial mediums. To ensure our safety and that of others, the government has made motor insurance mandatory. Its yearly premium is a pittance compared to the advantages it can provide in case of mishap. Implementing this strategy is imperative. Different types of motor insurance are available, depending on your needs. It also arrives with numerous policies that ensure the highest level of security.