The number of accidents has increased in the country; thus strict regulations are laid out by the government. Due to these incidents, it is important for one and all to have adequate insurance protection for their vehicle. Motor insurance for private or commercial vehicles is bought to provide financial protection against any loss or damage caused to the automobile or its parts due to natural and man-made calamities. Also, provides accident cover for owners of the vehicles while driving and even for passengers and third-party legal liability.
Types of Motor Insurance Policies:
Based on the extent of coverage and the type of vehicle for which the insurance is aimed, motor insurance policies are classified into different sorts.
- Two Wheeler Insurance
The two-wheeler insurance policy is a mandatory requirement as per the Motor Vehicles Act 1988 and Motor Vehicle Amendment Act 2019. This insurance policy covers any financial loss to the vehicle due to accidents, disasters, theft, etc. as well as the legal liability towards third parties in event of bodily injury, death, or property damage. Also, offers a mandatory personal accident cover for the owner rider and can be taken for passengers too.
- Private Car Insurance
This type of motor insurance needs to be taken after purchasing a private car and is mandated by the Government of India. One should opt for such insurance for protection purposes. This policy covers your vehicle’s overall protection right from natural calamities such as earthquakes or floods to damage or theft, or an accident, etc. With the compulsory requirement made by the government, third-party liability ensures that any damage that occurred to another person’s life or property by a personal vehicle will be covered in a claim.
One can also buy the vehicle insurance add-on plans, like zero depreciation, engine & gearbox protector, emergency assistance, cost of consumables, etc. this will help to improve your coverage for better protection than your standard motor insurance policy.
- Commercial Vehicle Insurance
Commercial Vehicle insurance is for vehicle owners who operate for commercial purposes. This insurance policy protects businesses and business owners from any liabilities or losses that occurred due to accidents or property damage with the vehicles involved, including loss of life, physical injury, or property damage. Such mandatory insurances help them to keep their business going without worrying about their automobile damage. Insurance is available on vehicles that are not used for personal use like trucks, Private as well as Public Carriers, Trailers, Taxis, 3-wheeler Autos, Buses, Miscellaneous and Special Types of vehicles – Agricultural Mobile Rig, Shovels, Grabs, Tractor, and Excavator, etc.
The basic motor insurance coverage includes the below damages:
- The loss or damage caused due to accident, fire, lightning, self-ignition, external explosion, burglary, housebreaking or theft, or malicious act.
- Liability for third party injury or death, third party property, and liability to the paid driver.
- On payment of suitable additional premium, damage to electrical/electronic accessories can also be covered.
Motor insurance coverage is a crucial concept to understand when you buy insurance. As an owner of your motor, you keep your vehicle in good condition, obey the road rules while on the road and practice good driver etiquette. Also, it’s your duty to protect your vehicle from unforeseen situations like accidents or theft that can harm the vehicle. Despite taking precautions, your car could meet with unexpected incidences on the road, breakdowns, tire bursts, man-made disasters, and many more. It costs an excessive amount these days to repair even for slight damage to the car. So, to make driving the car a worry-free experience, it is important to buy a motor insurance policy that safeguards your vehicle just the way you would.
Author Bio: Smriti Gala works as a Digital Marketing Manager with Coverfox. As her life turned upside down when COVID severely afflicted her family members, Smriti decided to dedicate her expertise towards informing and educating the masses about the importance of health insurance. When she is not actively writing enlightening content, our ‘monk marketer’ likes to meditate, meet new people and explore less travelled territories.