Motor Insurance

What is Motor Insurance?

Motor insurance is a type of insurance policy that provides coverage to the vehicle owner against financial losses arising from accidents or theft. All vehicle owners like trucks, cars, jeeps, bikes, scooters, etc., must have motor insurance in India. The Government has made it compulsory for the safety of the individuals who travel in vehicles daily. It serves as a risk- mitigating tool and provides security against any significant expenses arising from any damage.

Why do you need Motor Insurance?

Increased risk:

Driving on Indian roads is not an easy affair. Bad conditions of roads and lack of discipline while driving have increased the number of road accidents. Considering the risk involved, protecting yourself against unexpected damages is essential.

Follow Government regulations:

According to Sec 146 of Motor Vehicles Act, 1988, it is mandatory to purchase motor insurance before getting your vehicle on the road. If you do not want to buy comprehensive coverage, third-party coverage is the minimum you need to drive your car.

What are the advantages of Motor Insurance?

1. Motor insurance helps you pay for the vehicle damage repairs without affecting your financial condition.

2. It covers any damages caused to the vehicle due to natural calamities like earthquakes, floods, fires, lightning, landslide, etc.

3. It provides security against theft, vandalism, and other harmful incidents.

4. It also covers damages and injuries caused to the third party.

What are the types of Motor Insurance?

Third-Party Car insurance:

The main objective of this policy is to provide coverage for damage or injury caused to the third party by your vehicle. This is the bare minimum insurance you need to take to drive lawfully on Indian roads.

Comprehensive Car Insurance:

covers both third-party liabilities and damages to own vehicles. The policy provides end-to-end protection as it covers all expenses incurred to repair any damages to your car due to natural calamities, human actions like theft or accidents.