Motor Insurance: Types & Plans in India

Motor Insurance

Your vehicle is one of the most important possessions of your life. Thus, you need to give it the love and care it deserves. Therefore, it’s your duty to protect your vehicle from unforeseen situations like accident or theft that can harm your vehicle. It costs an exorbitant amount of repair cost even for a slight damage these days. Hence, it is important to buy a motor insurance policy that protects your vehicle just the way you would. In India, motor insurance is mandatory for a vehicle to drive on roads. The main objective of this insurance is to provide protection against loss or damage caused due to natural or man-made calamities.

Also known as vehicle insurance or auto insurance, motor insurance is bought for private or commercial vehicles to provide financial protection against any loss or damage. Vehicles such as bike, scooter, car, trucks, tractors, and other road vehicles are covered under this insurance policy. Apart from this, here are a few things you need to know about motor insurance policy:

Types of Motor Insurance Policy

Be it a private car, two wheeler or a commercial vehicle, there are basically two types of motor insurance policies –

Third-party insurance policy: Third-party insurance policy offers liability cover. It uniformly applies to all the vehicles, including motor bikes, scooters, private cars, commercial vehicles, etc.
Comprehensive motor insurance policy: This type of motor insurance policy covers both own damage of insured vehicle as well as third party cover. This policy applies to all the motor bikes, scooters, private cars, and commercial vehicles.

Motor insurance can be classified in to these following categories

Two-wheeler insurance: This insurance policy provides coverage to scooters and bikes. It ensures a safe ride every time you hit the road. Here’re the key benefits of buying two wheeler insurance policy –

Get comprehensive coverage
Buy or renew two-wheeler insurance for a period of 2 or 3 years
Protection of no claim bonus
Protection from inflation

Commercial vehicle insurance: Be it an accident or theft, commercial vehicle insurance provides financial protection in case of theft, burglary, and total damage. This insurance policy covers passenger carrying vehicles, goods carrying vehicles, taxies, and special type of vehicles like tractors, cranes, etc. A few key benefits –

Get unlimited liability for third-party injury or death claims
It provides personal accident cover
It offers loss or damage protection
Indemnity for third-party property

Car insurance: Car insurance is the best way to financially secure yourself and your car. This is basically a contract between you and your insurance company. It offers comprehensive coverage and third-party liability cover to the insured person following a damage, mishap or accident of the vehicle. A few key benefits –

Loss or damage protection
Cashless claims
Personal accident cover
Unlimited liability for third party injury/death claims

What’s covered under vehicle insurance policy

What’s covered under vehicle insurance policy?

List of things covered under vehicle insurance policy –

Accidental damage
Storm and flood
Landslide
Burglary, housebreaking and theft
Terrorism
Fire and explosion
Malicious acts
Legal protection for damage to third party; injury/death claims from third party; legal costs and expenses
Personal accident cover

What’s not covered under motor insurance policy?

Here’s a list of things not covered under vehicle motor insurance –

Any mechanical and electrical breakdown
Depreciation, wear and tear or any consequential loss
Damage caused to an individual driving a vehicle under the influence of alcohols/drugs
Damage caused to an individual driving a vehicle without a valid license
Loss or damage caused due to radioactive or nuclear-related activities

How to file a motor insurance claim?

Here’s a step-by-step guide on how to file a motor insurance claim –

The first and foremost thing is to inform the insurance company and get few important details in hand like policy details, loss details, and contact details.
A survey will then be arranged on submitting the detailed estimate of repairs from the repairer.
Submit duly filled and signed claim form along with documents such as registration certificate of vehicle, driving license, etc. Also, it is mandatory to update PAN and Aadhaar card details.
In case of third party death/injury or any damage to property, you need FIR from police station.
If all documents are found to be correct and in order, then a cashless facility will be arranged by the insurance company.
You need to produce your vehicle for re-inspection, if requested by the surveyor

What are the benefits of buying motor insurance online?

There are several benefits of buying motor insurance online. Here’re some of them –

It is easy and convenient: It is both simple and convenient as the entire process can be done online on a click of a button.
It saves time: It saves your valuable time as you don’t have to meet the insurance agent. You can compare and buy policy online.
It offers better services: Online services include trained professionals and experts who are 24*7 available to resolve all your queries. Also, after buying the policy, if you have missed paying any premium payment, then the customer will get a reminder at their registered address through e-mail.
It offers great discounts: Buying motor insurance policy online directly from the insurance company allows greater discounts.

Buying motor insurance policy has become more than just a compulsion in India due to the growing awareness about safety of the individuals driving it as well as that of the vehicle. Thus, for those who are looking to buy motor insurance policy online, go for Royal Sundaram; it offers comprehensive package policies that cover loss or damage caused to your vehicle.