What is Motor Insurance?

Motor Insurance is a vehicle insurance policy for vehicles like Cars, Bikes, Scooters, Trucks, Taxis, Buses, etc. As per Motor Vehicles Act, 1988, Motor insurance is mandatory. This policy provides financial protection against physical damage or theft or third-party liabilities or other kinds of damages that could arise from an accident or incident.

What are the Types of Motor Insurance

Motor insurance can be classified into the following categories based on the type of vehicle and its usage. The terms & conditions and premium may vary accordingly.

Private Car Insurance Policy

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This is a type of motor insurance policy that covers a car used for private or personal use. The policy provides financial coverage against fire, theft, natural calamities, accident, riots, etc. and also covers personal accident & Third-party liability.

Two-Wheeler Insurance Policy

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This insurance policy covers two-wheelers like a scooter, bike and other two wheelers. The policy provides financial coverage against fire, theft, natural calamities, accident, riots, etc. and also covers personal accident & Third-party liability.

Commercial Vehicle Insurance

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This is a type of motor insurance policy that covers a car used for private or personal use. The policy provides financial coverage against fire, theft, natural calamities, accident, riots, etc. and also covers personal accident & Third-party liability.

Why Do You Need a Motor Insurance?

As per Motor Vehicles Act, 1988, Motor insurance is mandatory. Further, it protects the owner of the vehicle against damages to the vehicle and also pays for any liabilities owed by the vehicle owner as per law

The benefits of purchasing a motor insurance policy are as follows:

Damage or loss to the insured vehicle

The damages to the vehicle due to the following perils are usually covered under Own Damage (OD) section of the Motor Insurance policy:

  • Fire, Explosion, Self- Ignition, Lightning
  • Burglary/Housebreaking/Theft
  • Riot & Strike
  • Earthquake
  • Flood, storm, cyclone, hurricane, tempest, inundation, hailstorm, frost
  • Accidental external means
  • Malicious Act
  • While in Transit by Rail / Road, Inland waterways, Lift, Elevator or Air
  • Land slide / Rock slide

Third Party Liability

This insurance provides cover to third-party liability for damages to property of third party as well as for bodily injuries or death of persons.

No Claim Bonus

Customer is eligible for this benefit for every claim-free year. Additional discount as per Indian Motor Tariff is offered on renewals.

Personal Accident Cover

It provides protection against permanent total disability and death due to an accident.

Legal Protection

As it is mandated by law, not having motor insurance is a violation of traffic laws and is a punishable offence. Therefore, it is important to have a motor insurance policy.

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