Different Types Of Motor Insurances In India

• Protect yourself with long-term third party cover
• Enhance you cover with add-on covers
• Buy/renew your policy online without hassles from the insurers website

The basic purpose of Motor Insurance is to provide protection against the damages/loss occurred to the insured vehicle and owner or damage caused to third-party by the insured vehicle. Owning a vehicle insurance is mandatory under Motor Vehicle Act, 1988. Driving without an insurance is a punishable offence and one can be heavily fined for this act. Here are the different types of motor insurances;

Comprehensive policy:

This is a standard policy that provides an extensive coverage under various situations for the policyholder. Also known as ‘other than collision’ cover, this plan covers third-party liabilities due to body injuries and/or accidental death/property damage, own liabilities arising out of personal losses and/or property damage from natural calamities and/or man-made calamities. The premium for this plan is high due to the extensive insurance coverage the plan provides. Insurers usually provide a number of add-ons that you can opt for under the comprehensive plan.

Third-party Liability cover:

Also known as third-party insurance, this plan provides cover against all the legal liabilities that arises due to damages or injuries caused to a third-party person or property by the insured vehicle. Personal losses covered under this plan include accidental death, body injuries, permanent disability, etc. This insurance cover can be availed at a lower premium as it covers only third-party liabilities. This cover allows you to raise a claim under the ‘no-fault liability claims’ category. Here, you are allowed to raise the claim without having to provide proof that suggests your negligence caused the accident. Sometimes insurers provide personal injury protection cover as an add-on for this insurance policy.

Add-ons for insurances:

There are many add-ons as per the requirement of the policyholder. You can avail these benefits for extra premium amount on your standard policy. These will enhance the cover making it more secure for the vehicle. Here are the add-on covers that are available for extra premium:

Zero-depreciation cover:

A Zero Depreciation cover gives you a full coverage for the vehicle as whole or part of the vehicle, without deductions of depreciation. The standard rate for two wheeler insurance policy is up to 40%, but with an add-on option of Zero Depreciation cover, you can claim for full amount. This is a huge advantage, because while calculating for compensation or repairs on accidents or otherwise, all insurers take depreciation value into consideration. That is why standard plan gives you a claim amount after deducting the depreciation value.

Key replacement:

If you have lost the main key for ignition of the vehicle due to any reason, the insurance company will cover the cost incurred in acquiring a duplicate or new key set.

Anti-theft device cover:

If the owner of the insured vehicle has installed anti-theft device in the bike, the insurance company will give you discount on premium amount.

Return to invoice cover:

If the owner of the insured vehicle purchases this add-on cover, then he/she will be paid with full market value of the bike, if in case the bike was in a mishap and could not be repaired any further. However this add-on can be purchased within the completion of the first year of your bike purchase.

No-claim bonus protection:

If you have not claimed for the insurance during a policy year, no-claim bonus is a reward given by the insurance company in form of discount on the renewal premium amount. However, if the policyholder claims in subsequent years he may lose the NCB amount which he had accrued in the previous year. This protection cover will protect the NCB amount by becoming zero but only reduces the discount percentage given on the premium renewal amount.

Roadside assistance:

This cover will help you get immediate assistance from the insurer in case of emergencies like flat tyre, empty fuel tank, battery issues, medical emergencies, etc.

Personal Accident cover:

depending upon the policy purchased, the owner of the insured vehicle can utilize up to Rs.2 lakh for personal accident medical expense.

Vehicles can be used for two purposes; personal and commercial purpose. For personal purposes you can purchase comprehensive policy which covers various situations for which one may need the help of an insurance. Vehicles which are used for commercial purposes will have to mention in the policy about the same to avail the benefits. The commercial motor insurance covers third-party liability cover and accidental cover for the insured vehicle and the driver.