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