Table of Content
Introduction
Motor insurance is not a luxury. It is a necessity in India. While the law makes it mandatory to have basic coverage, it is wise to get comprehensive coverage. A motor insurance policy covers your car and its occupants perfectly. The motor insurance industry in India has modernised. Hence, you get some excellent policies from some of the best insurance companies. Read on to know more.
What are the types of motor insurance?
Motor insurance is broadly divided into two categories - third-party and comprehensive. Here’s a lowdown:
1. Third-party coverage
What is third-party car insurance? A third-party car insurance plan offers basic coverage. Such a plan is compulsory for every vehicle owner. You need third-party insurance as soon as you get a vehicle registered in your name. Third-party car insurance offers coverage for damages to another person in the event of an accident. If your vehicle is involved in an accident that causes bodily damage to a third party or damages their car, you will have to pay for the damages. The third-party plan steps in in such a scenario and clears the dues on your behalf.
2. Comprehensive coverage
A third-party plan is very useful, but it is limited in coverage. You do not get coverage for your own vehicle. Since your car is one of the most precious properties you own, you need to keep it secure. A comprehensive car insurance plan helps you to do it. Comprehensive car insurance offers third-party protection, along with own vehicle coverage. You get to protect your car against perils such as theft, fire damage, dents, etc. You can also customise comprehensive insurance and add riders to make the policy tailor-made for you.
How is my car protected by motor insurance?
You need a comprehensive car insurance plan to cover your own vehicle. Here is how the plan protects your vehicle:
1. Accidents
Accidents are the biggest safety hazards that car owners face. At times, they are unavoidable, even if you drive well. Therefore, you need a good motor insurance policy in place. Comprehensive motor insurance offers coverage for accidents. You can get your car repaired, and the insurer will take care of the expenses.
2. Theft
If your car gets stolen, your insurer will pay out the claim. You can buy another vehicle with the claim amount to replace your stolen car. However, the insurer will only pay the IDV (insured declared value), which is the current market value of the vehicle. You will not get the original cost of the car unless you have a return to invoice add-on cover.
3. Fire
Cars are often damaged or completely lost in fires. If your vehicle catches fire, you will get a car insurance claim. This will help you to repair the vehicle or replace it with a new one.
4. Natural calamities
Floods, earthquakes, cyclones, etc., often cause havoc. If your vehicle is caught in any natural calamity, you can claim under your motor insurance plan. Damages due to natural calamities are included in a comprehensive motor insurance plan.
5. Man-made disasters
Riots, vandalism and other man-made disasters are also included in comprehensive car insurance. If your car is partially or completely damaged in any such event, you can get compensation from your car insurance company.
How does motor insurance protect the driver and passengers?
Personal accident coverage is a special feature included in most motor insurance plans. Under this, you get medical coverage if the driver is injured in a road accident. A disability cover is also included in case the driver suffers temporary or permanent disability following the accident.
In the event of death, the driver’s nominees get a payout. The amount is pre-decided and is an integral part of the policy.
For passengers, you can purchase an additional rider, known as the passenger cover add-on. With this add-on cover in place, all the occupants of the car will remain protected if there is a mishap.