• Types of Motor Insurance in India

    Car Insurance
    • Protect yourself with third party or comprehensive cover
    • Use bumper to bumper policies to reduce your liability
    • Enjoy facilities like zero depreciation and roadside assistance covers

    According to The Motor Vehicles Act, 1988, a person needs to have a valid motor insurance policy if he/she owns a vehicle and wishes to drive it on the roads of India.  

    The insurance policy purchased by you will depend on the type of vehicle owned by you. The cover amount, tenure for which the policy will be in force, premium payable, etc. will depend on factors like how old your vehicle is, for what purpose you intend to use your vehicle, the topographical regions where your vehicle will be driven, etc. Here, we will look at the types of motor insurance that you can purchase depending on the type of vehicle owned by you. 

    • Car insurance: You will have to purchase a car insurance policy if you own a car. Car insurance is a growing segment in the insurance sector and various automobile companies are tying up with insurance companies to ensure that the customer does not have to worry about purchasing a separate insurance policy. On buying a car insurance policy, you will be covered in case of any damage caused to a third party by your vehicle. Depending on the coverage chosen by you, you will also be provided with coverage in case of any damage incurred by your car, or if your vehicle gets stolen or meets with an accident. 
    • Two-wheeler insurance: Two-wheeler insurance is the type of product you will have to purchase if you own a scooter or a motorbike. Just like a car insurance policy, your two-wheeler insurance policy will cover you in case of any damage caused to a third party by your vehicle. Depending on the coverage chosen by you, you will also be provided with coverage in case of any damage incurred by your car, or if your vehicle gets stolen or meets with an accident. 
    • Commercial vehicle insurance: Commercial vehicle insurance is provided to those who own vehicles intended to be used for commercial purposes. Vehicles such as Heavy Motor Vehicles (HMV), trucks, and buses fall under the category of Commercial Vehicles. If you own any of these types of vehicles, you will then have to purchase a commercial vehicle insurance policy. In case of any damage caused due to your vehicle or in the event of it getting stolen, your policy will provide you coverage for the same. The premium amount will depend on factors such as the showroom price of the vehicle, the place at which the vehicle was registered, etc. 

    Types of motor insurance based on coverage 

    Based on the coverage, there are two types of motor insurance that you can purchase. Those two types of motor insurance policies are Comprehensive motor insurance policy and Third-party liability motor insurance policy. Here we will have a look at what these two types of motor insurance policies are, and how they are beneficial in nature. 

    • Comprehensive motor insurance policy: In case your vehicle meets with an accident and gets damaged in the process, or gets stolen, you can claim compensation if you have availed a comprehensive motor insurance policy. This type of motor insurance policy aims to provide coverage to the insured in case of an accident or any damage caused to the vehicle.  
    • Third-party liability motor insurance policy: The Indian legal system has made it compulsory for any vehicle owner to have the minimum third-party liability motor insurance coverage. As the name suggests, this type of policy provides protection against any sort of damage or loss caused to a third party by your vehicle. This type of policy protects you from any legal liabilities that may arise due to your involvement in causing any damage to the property of a third party by compensating them. 

    Hence, these are some of the types of motor insurance policies that you can avail depending on the type of vehicle owned by you. It is important that before you purchase a motor insurance policy, you compare various insurance plans so that you can avail the best insurance scheme suitable for you. You must choose the cover amount and the tenure for which your vehicle should be covered depending on the age of your vehicle. It is compulsory by law to have a valid motor insurance policy and you must not forget to renew it when it is about to expire. 

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