What is motor insurance?
In essence, motor insurance is just like any other insurance policy, but unlike other policies, it is "Mandatory by the law"! Considering the spike in motor accidents in the last 4-5 years, it is evident that compulsory motor insurance is...
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What is motor insurance?
In essence, motor insurance is just like any other insurance policy, but unlike other policies, it is "Mandatory by the law"! Considering the spike in motor accidents in the last 4-5 years, it is evident that compulsory motor insurance is needed. There has been a sudden spike in vehicle registrations, which is responsible for most of these figures. In response, the Indian government has introduced the India motor vehicle act. In accordance with this act, all vehicles need to be fully insured before they are driven on the road to protect those who might get injured in an accident, although it is not mandatory to cover the damage to their own vehicles. Moreover, as the name implies, it covers all types of motor vehicles- motorcycles, cars, jeeps, trucks from all financial risks.
Why Motor Insurance is a must?
In Indian conditions, the vehicles are subject to many hazards like potholes, open manholes, untarred roads, traffic management systems, jaywalkers, puddles, poor pedestrian management, and absence of footpaths for pedestrians, increasing number of accidents, etc. which accentuate the need for automobile insurance.
Without compulsory auto insurance, some people may opt not to purchase these on their own as they tend to think that accidents and losses will be borne by others or underestimate the risk of loss. In this regard, auto insurance is a need of the hour.
TYPES OF MOTOR INSURANCE
Motor Insurance types to cover different Vehicles- Private car insurance and commercial car insurance.
Private car insurance policy bought by car owners who use their cars to get around on a personal basis. Individuals can select from assortment of policies.
A commercial car insurance policy is acquired by corporations who use their vehicles for business purposes.
Several Kinds of Automobile/ Motor Insurance Policies: -
- Third party car insurance policy
Obtaining a third insurance policy is a legal necessity under the Motor Vehicle Act of 2019. Without it, you would be driving unlawfully on the road, resulting in a fine or penalty. This policy provides protection against the legal liability that you may be legally liable for. In response to its name, Third Party Insurance only covers third party liabilities I.e., covers damage to a third party's property and injury caused by your own vehicle. The one interesting aspect of the policy is that it need not prove negligence on the part of the driver in order to be entitled to compensation. Furthermore, the premium is also reasonably priced when considering the scope of the cover.
- Own damage car insurance policy
This policy offers car insurance coverage for your own damage sustained by your car due to road accidents. It is intended to safeguard your car against unforeseen own damages like road accidents, fires or natural disasters.
- Comprehensive car insurance
This insurance policy offers you the liability protection along with own damage protection. As the name implies, comprehensive car insurance covers your car end-to-end by offering in-depth coverage for your vehicle as well as theft coverage. If you are covered for this and your car is stolen, you can rest assured that your costs will be covered.