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What Is Motor Insurance?

Motor insurance is a requirement for vehicle insurance policies, which include those for trucks, cars, jeeps, bikes, scooters, etc. This policy protects the driver and owner of the vehicle from potential financial losses brought on by mishaps or other types of damage.

In India, it is mandatory for car owners to have valid motor insurance in order to shield themselves from potential financial risks. In order to avoid having to pay large amounts of money for repairs following an accident, this is the best security you can have. The government is mandated to ensure the safety of people who drive on a daily basis.

Purchasing a car is undoubtedly the second most costly investment a person makes in their lifetime, after purchasing a home. Therefore, it is essential to safeguard the investment from unanticipated events. An unfortunate accident can leave you with a large financial hole, given the rise in auto repair costs and the risks associated with driving.

Features of Motor Insurance?

INumerous features of a motor insurance policy are advantageous to third parties in addition to the owners of the vehicle. By offering the following features, insurance companies enable car owners or other vehicle owners to keep their clients and other road users safe.

  • Obtain adequate protection against theft, accidents, vandalism, earthquakes, floods, and other natural and man-made disasters.
  • In the event of theft or accidents, presenting adequate evidence makes cashless claims easier to make.
  • Renew your insurance online to avoid wasting time traveling or filling out paper copies of the paperwork.
  • A simple, low-effort method of obtaining auto insurance online
  • Get both third-party and comprehensive insurance to be completely protected.
  • A car owner can file a claim at any time with the no-claim bonus feature, which also offers transference to other insurers.
  • To keep clients informed about their motor insurance policy and the status of their claims, all motor insurance companies provide committed assistance and customer support services.
  • Incorporate coverage for third-party liability to make up for other people's losses.
  • The majority of companies have a network of garages where you can request an assessment of the vehicle's condition following accidents as well as get repairs completed.
  • Additionally, add-on features are offered, enabling policyholders to increase coverage at any time.

Types of Motor Vehicle Insurance

There are three types of insurance: commercial vehicle insurance, two-wheeler insurance, and car insurance. Let us take a look at what each type of insurance covers.

Car Insurance : You are shielded from all forms of property or personal damage by the armor of your car insurance. Additionally, the comprehensive coverage provided by auto insurance policies offers total protection for your car against damage, theft, accidents, and natural disasters like earthquakes and floods.

Car owners can rest easy knowing that they are additionally covered against liabilities such as bodily harm or third-party damage, as the government has made third-party liability a mandatory requirement. In addition, car owners can choose zero depreciation policies and other add-ons like engine and gearbox protection to give their vehicles better coverage.

Two-wheeler Insurance : Under the Motor Vehicle Amendment Act of 2019, obtaining motorcycle or two-wheeler insurance with third-party and personal accident coverage is essential. The owner is shielded by insurance from all liabilities and any kind of property or personal damage thanks to its comprehensive coverage. Nonetheless, regular wear and tear on the vehicle is one of the exclusions listed in two-wheeler insurance policies.

Commercial Vehicle Insurance : Owners of vehicles used for business purposes are covered by commercial vehicle insurance. They must have insurance in place to ensure that their business operates smoothly. Businesses and business owners are shielded by commercial vehicle insurance from liabilities and losses resulting from accidents or property damage involving their vehicles, including death, serious injury, and property damage. Commercial vehicles, including cars, trucks, taxis, and private and public carriers, can be covered by this kind of insurance.

Motor Insurance Coverage in India

Car Insurance Coverage : The various categories of car insurance coverage in India are as follows:

Comprehensive : A comprehensive auto insurance policy protects both the policyholder's interests and every conceivable aspect of the insured vehicle. However, it is better to know about the various aspects that these insurance policies cover. Comprehensive insurance provides coverage for a variety of risks, such as damage caused by animals or third parties, vandalism, theft, and civil unrest that could result in vehicle damage.

Under comprehensive insurance, the following add-on covers are available for selection:

Zero Depreciation : When determining claim settlements or reimbursements, a 0% depreciation cover is essential. Your car insurance company will typically deduct the car's depreciation value from the day it was paid when they pay the claim settlement amount or reimburse your bill payments.

Roadside Assistance : You will need assistance immediately if your car breaks down while you are driving, whether it is on a highway or through a city. Just get in touch with the insurer and let them know about the issue. The insurer will use its network of garages to arrange for towing or garage service if the engine fails.

Tyre Protect : Tyre Protect is an add-on that guards against damage like in-tire bulges, tire punctures or bursts, accident-related cuts on a tire, and so forth.

Consumable Cover : In addition to the items covered by the basic insurance, this consumable add-on also includes items like grease, air conditioner gas, lubricant clip, bearings, fuel filter, engine oil, brake oil, oil filter, nut and bolt, screw, washers, and so on.

Third-Party Insurance

Third-party auto insurance is mandated by law for all Indian vehicle owners. These insurance policies essentially protect the policyholder's interests against damage the policyholder causes to people or property.

In several circumstances, third-party coverage can be claimed to help lower the policyholder's risk and liability. Older, less expensive cars that are simpler to fix are also recommended to have this coverage.

Own Damage Insurance Policy Cover

The cost of auto repairs or reimbursement for damages is covered by the own damage insurance policy, also known as the collision damage policy. The age and value of the vehicle will be factored in to determine the premium value, which will ultimately determine the cost of collision coverage. IDV is calculated using the car's market value as a base. The insured declared value after depreciation determines the maximum amount payable under the policy in the event of a claim against this type of coverage.

Bike Insurance Coverage

Bicycle insurance policies mostly come in three varieties:

Third-Party Bike Insurance Policy : According to the Indian Motor Vehicles Act, a bike must be insured against any liability that might arise from any losses or damages incurred by third parties in an accident that the covered bike causes.

Third-party bike insurance is the term used to describe this type of insurance. This policy will pay for any injuries or fatalities to third parties as well as any damage to the third-party vehicle if the covered bike causes an accident.

As you can see, loss or damage to the insured bike is not covered by third-party liability insurance. Any collision could result in some damage to the insured bike as well as injuries to the rider. To pay for the expenses of the insured bike, you should either get a complete bike insurance policy or a stand-alone own-damage policy.

Comprehensive Bike Insurance Policy : This coverage offers complete 360-degree protection for both you and your bike against third- party liabilities, as the name suggests.

Comprehensive bike insurance is a type of two-wheeler insurance that offers personal accident coverage, legal and financial liability protection, and damage coverage for the insured bike to the owner-driver. In addition, if you include a list of special extras with your insurance, you can obtain tailored protection against specific situations. Roadside assistance coverage, zero depreciation coverage, and other add-ons are popular.

Standalone Own Damage Coverage Insurance Policy : A Separate Damage An insurance policy for two wheels serves as a type of bike insurance, guarding the insured two-wheeler against harm. It covers theft of the bike, total damage (damaged beyond repair), and natural and man-made disasters. However, third-party liability is not covered by this policy. This means that this policy can only be acquired in addition to the third-party liability coverage that is mandated by law.

Why should you buy Motor Insurance?

The benefits and protection your vehicle insurance policy provides in the event of an accident far exceed the small annual premiums you pay. Many people have misconceptions about the policy, but under certain conditions, it will pay for any physical injuries you sustain.

Driving on Indian roads has become impossible without motor insurance due to the large number of accidents and poor road conditions. In addition to providing you with financial security, auto insurance also pays for damages to third parties.

  • Cashless or direct settlement claims are accepted at network garages.
  • Coverage of depreciation
  • Engine shielding material
  • Roadside assistance is available around the clock
  • Facility for towing

Parameters Affecting Vehicle Insurance

These are the variables that may have an impact on the cost of motor insurance premiums.

Make and model : Your insurance plan's premium amount is determined by the make and model of your car, which includes its cubic capacity, model, and variant.

Engine : Whether it is a diesel or gasoline engine, the engine type will have an impact on the IDV and could raise the premium amount.

Location : The location of your vehicle determines the premium amount. The risk of an accident means that your auto insurance premium will be higher if you reside in a metropolis.

Add-ons : The auto insurance plan includes a specific set of coverage, but if you are not happy with the amount of coverage you currently have, the insurance company also offers add-ons.

No claim bonus : When a policyholder does not file a claim during the preceding policy term, the insurance companies offer a discount on the subsequent year's motor insurance renewal.

Things to consider before buying Motor insurance

If you want to get the best deals on comprehensive coverage, you should consider the following factors when making your purchase.

Coverage : Investigate your immediate need for third-party liability or comprehensive coverage. It is always preferable, in our opinion, to purchase comprehensive auto insurance online.

Claim Procedure : If at any point you find yourself needing to file a claim, go through the claim process to see how involved the process can be.

Add-Ons : Find out about the company's add-on features and select the extra coverage that makes sense for your particular situation.

Personal Accident Cover : Always check to see if the policy you are purchasing will provide personal accident coverage.

Policy Document : Do not ever sign anything without first reading and analyzing the policy. The document contains several clauses that could be confusing to you. Thus, always carefully review the document before completing the purchase.

Premiums : Request comprehensive information about the methodology used by the insurance provider to determine your online auto insurance rates. Recognize the contributing elements and ask questions whenever you have them.

Zero Depreciation Cover : When an automobile leaves the dealership, its value drops by nearly half. To offset the loss resulting from depreciation and preserve the vehicle's monetary value, you must choose zero depreciation coverage.

Garages : All motor insurance providers have a network of garages where vehicle service and repairs are more affordable than at local garages. They must be taken into account because, as you travel, the car will require maintenance more frequently.

NCB : When your auto insurance policy needs to be renewed after it expires, find out if the providers provide a good No Claim Bonus and other benefits. As you go year after year without claiming your insurance, the discount on the following year's plan gets bigger.

IDV : After deducting the amount of depreciation, only reputable insurers will give you the vehicle's best market value. If your car is stolen or destroyed, you can use this to receive compensation known as Sum Insured.

Document required for Motor Insurance

The following list contains the documents needed to apply for auto insurance online.

Identification documentation such as a passport, driver's license, Aadhaar, PAN card, or government-issued picture ID

Proof of Address through Government- Issued Photo ID, Passport, DL, Bank, or Post Office Passbook

most recent passport-size photo

Driver's License

Vehicle Registration Certificate

Frequently Asked Questions

All vehicle kinds, including personal automobiles, motorbikes, and commercial vehicles, are covered by a motor insurance policy. It provides monetary security against harm brought on by an accident, theft, or vandalism of the vehicle. It also covers any bodily harm caused by accidents or theft.

Insurance Declared Value, or IDV for short, is the highest amount your insurance company will pay for your car if it is stolen or damaged.

No, you will need to purchase insurance for each vehicle separately if you purchase a new one. It is not permitted for you to hold the primary insurance policy for two vehicles at the same time. There is a provision for personal accident coverage for two vehicles under one policy with Bajaj Allianz, though.

Immediately after your car is stolen, you should file a First Information Report (FIR) at the closest police station. After that, you can file an insurance claim with the provider. But to proceed, you must submit several necessary documents, such as the FIR and claim paperwork. You can call us, ask the representative, or submit a claim online.

Purchasing a motor insurance policy does not require any special circumstances. You are qualified to obtain any kind of auto insurance policy if you legally own a vehicle registered in your name.

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