Motor Insurance policies are legally obligated to safeguard the financial interests of vehicle owners. Any unfortunate accident can cause car damage and even bodily injury, which may sometimes result in death. To secure yourself financially from such incidents, it is always better to have vehicle insurance, also known as motor insurance. To avail the benefits of motor insurance, the vehicle owner must pay its premiums on time. The premium depends on certain factors, such as the car's model and age. In this blog, we will examine five important benefits of buying motor insurance in detail and understand their importance.
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According to the Motor Vehicles Act, third-party insurance is compulsory in India. The vehicle insurance covers the owner from any financial losses incurred by unforeseen circumstances, such as natural disasters, accidents, theft, etc. The comprehensive coverage safeguards your vehicle and your finances, while third-party insurance protects you from liabilities arising from accidents involving others. The insurer will insure any damages or loss to an insured motor, the third party, or the policyholder.
When it comes to different types of motor insurance offered in India, there are three choices an individual can choose from; let’s find out how many types of motor insurance are available in the market:
Private Car Insurance:
You can opt for car or private car insurance for private-use four-wheelers, like SUVs, sedans, hatchbacks, etc. The features of motor insurance give financial protection for your personally used vehicles.
Coverage
The policy protects you from theft, fires, accidents, and other natural calamities.
The policy covers third-party liabilities, including fatalities, injuries, or property damage from accidents involving insured cars.
Though third-party coverage is mandatory as per the Motor Vehicle Act of India, having your personal damage insurance is better for comprehensive coverage. However, it excludes any damages from breakdowns, drunk driving, invalid licenses, wear and tear, or incidents outside its specified area and commercial use. Benefits of motor insurance include financial security, protection against unforeseen expenses, and peace of mind knowing that damages and liabilities are covered under a suitable policy. It is essential to note this policy type doesn’t apply to cars used for commercial purposes.
Commercial Vehicle Insurance:
Commercial motor insurance covers vehicles not used for personal reasons. It ensures that business operations run smoothly by offering financial security against adverse events.
Coverage
This insurance type covers any vehicles used for business purposes, including trucks, heavy and light commercial vehicles, buses, agricultural vehicles, multi-utility vehicles, taxis or cabs, auto-rickshaws, ambulances, etc.
Key features are comprehensive coverage for private and public carriers, compensation for any unexpected expenses, and liability for accidents.
It even addresses third-party damage & provides personal accident coverage. The war perils, wear and tear, and usage limitations are excluded.
The types of motor insurance claims can be classified as third-party insurance, comprehensive, and personal accident cover.
Third-Party Liability Insurance:
Third-party insurance coverage is the most basic insurance. It protects you and your vehicle from damages or losses caused to third-party property, individuals, or vehicles by an insured vehicle. Having a third-party insurance policy is compulsory for driving on roads.
Comprehensive Insurance:
Comprehensive insurance covers a wide range of risks. In addition to third-party liability, it safeguards against any damages/losses caused to an insured vehicle and offers other optional coverage choices.
Personal Accident Cover:
Personal accident insurance protects a car owner from accidental injury or death. According to IRDAI, an insurance company can provide coverage up to INR 15 lakhs. This policy also covers medical costs and compensation for any disability or death
Add-On Covers:
There are additional insurance covers that will increase your vehicle’s safety. They are:
Zero Depreciation Cover:
With an additional premium, this cover will protect against additional depreciation charges.
No Claim Bonus:
This cover protects against NCB discount when claimed during its policy term.
Engine Protector Cover:
This add-on compensates for any expenses incurred to repair the engine due to damage or loss caused by fire, water, or natural disaster.
When buying any insurance policy, it is very important to consider the claim settlement ratio, cover range, add-on protection, policy portability, geographical location, policy terminology, and safety features. Now that you know the different types of motor insurance available, finding the right insurance policy that suits your requirements will be simple.
To summarize, protect yourself and your car with comprehensive motor insurance. New drivers especially should explore the benefits of car insurance. Choose a policy that's easy to understand and purchase from a reputable insurer known for excellent service. Always compare features of motor insurance before making a decision. Considering the importance of motor insurance, you just cannot miss out on Universal Sompo's motor insurance policy , which provides an array of plans offering optimal protection and coverage. Buy vehicle insurance online and enjoy the vast network of cashless garages, the least paperwork, and an easy claim process.
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