Motor insurance is mandatory for all vehicles in India under the Motor Vehicles Act. The policy gives financial protection against accidents, theft, or damage to it.
Let's understand the various motor insurance policies available in India and their benefits so that you can choose the best one.
1. Third Party Liability Insurance
This is the most basic and mandatory policy for all vehicles in India. It covers:
Third-party damages or injuries to people's properties.
Does not cover your own vehicle damage.
Important for small-budget car owners, who meet the minimum legal requirements.
2. Comprehensive Motor Insurance
Comprehensive insurance covers your vehicle in every way, which basically means:
Damage to your vehicle due to accidents, theft, fire, or natural disasters
Third-party liabilities and man-made disaster such as riots
It is recommended for those who seek overall protection, though the premium would be more.
3. Own Damage Insurance
Designed for owners with third-party coverage who want to safeguard their vehicle against:
Accidental damages.
Natural disasters like floods or earthquakes.
Theft or vandalism.
4. Pay-As-You-Drive Insurance
This new policy works on the principle of pricing the premium of a vehicle on its usage. Features include:
Low premiums for less usage.
Tracking of kilometers in real time.
Best suited for owners who do not drive much.
5. Add-On Covers
Get more security to your policy by adding add-ons like,
Zero Depreciation Cover: Claim without applying depreciation amount.
Engine Protection Cover: Covers damages resulting from floods or accidents.
Roadside Assistance: Emergency help during breakdowns.
Advantages of Motor Insurance
Financial Security: Covers costs involved in repairing accident-caused damage, theft, or disasters.
Legal Compliance: Satisfies legal requirements.
Personalization Options: Tailor policies with add-ons for personalized protection.
What Does Motor Insurance Cover?
Damage caused by accidents, theft, or natural calamities.
Liability for third-party property or personal injury.
Choose the right motor/car insurance according to your pocket, usage, and requirements for coverage. Third party itself will suffice to fulfill the legal process, but full and own damage insurance will provide the maximum benefit. Add-ons such as pay-as-you-drive cover maximum benefit and safety.
Drive safe and sound!
