What is Motor Insurance?

Motor insurance is a protection plan designed for a wide range of vehicles such as cars, bikes, scooters, trucks, taxis, buses, and more. As mandated by the Motor Vehicles Act of 1988, motor insurance is an essential requirement for all vehicle owners. The policy serves as a comprehensive financial safeguard against a multitude of risks, including physical damages, theft, third-party liabilities, and other unforeseen damages resulting from accidents or incidents. With motor insurance, individuals can have peace of mind knowing that they are fully protected against the many challenges of being on the road.

What are the Types of Motor Insurance in India?

Within the domain of motor insurance, the diverse range of policies available in India are predominantly classified according to the type of vehicle and its designated usage. It is noteworthy to acknowledge that the particular policy's terms and conditions, along with the premium rates, are subject to variation based on its specific nature.

• Private Car Insurance Policy:  A Private Car Insurance Policy is specifically designed to provide financial coverage for privately-owned cars used for personal purposes. This policy offers protection against a variety of risks such as fire, theft, natural calamities, accidents, riots, and much more. Furthermore, it also covers personal accidents and third-party liability.
• Two-Wheeler Insurance Policy:  This type of insurance policy is tailored to cover two-wheelers like scooters, bikes, and other such vehicles. The policy provides coverage against a diverse range of perils such as fire, theft, natural calamities, accidents, riots, and so on. Additionally, the policy also provides personal accident coverage and third-party liability.
• Commercial Vehicle Insurance:  The Commercial Vehicle Insurance policy is designed to offer comprehensive protection for vehicles that are deployed for commercial purposes and not for private or personal use. This category includes vehicles such as trucks, buses, heavy commercial vehicles, light commercial vehicles, multi-utility vehicles, agricultural vehicles, taxis, ambulances, and auto-rickshaws. The policy provides financial coverage against a host of potential hazards such as fire, theft, natural calamities, accidents, riots, and much more. Moreover, it also offers personal accident coverage and third-party liability.

What are the Types of Motor Insurance Policies in India?

When it comes to motor insurance policies in India, there are a few distinct categories to be aware of, each of which serves a specific purpose.

Third-Party Liability Insurance

This type of insurance policy, also known as Liability Only Policy, is mandatory by law for all vehicles on Indian roads. It provides coverage for damages to third-party property, as well as for bodily injuries or death sustained by third parties. However, it only offers minimal coverage and does not provide protection to the policyholder against damage or theft of the insured vehicle.

Comprehensive Motor Insurance

Comprehensive motor insurance is a package policy that includes third-party liability coverage, as well as protection against expenses incurred due to damage or theft of the insured vehicle. This policy can be further enhanced through the addition of supplementary covers, which offer extended benefits to the policyholder.

Standalone Own Damage Insurance

This insurance policy provides protection against damage, accident or theft of the insured vehicle. Unlike comprehensive motor insurance, it does not cover third-party liability for damages to third-party property or bodily injuries. However, this policy can also be bolstered through add-on covers that offer additional benefits to the policyholder.

What are the Motor Insurance Policy Add‑ons?

As a discerning vehicle owner, you understand the importance of having a comprehensive motor insurance policy. However, did you know that you can enhance the coverage of your policy through add-on covers that offer extended benefits? Here are some of the premium add-ons available to elevate your motor insurance policy to the next level.

Zero Depreciation

This premium add-on, also known as nil depreciation cover or bumper-to-bumper policy, offers full claim value on parts replaced due to an accident without any deduction for depreciation. Enjoy complete peace of mind with this comprehensive cover that takes care of any financial loss incurred due to depreciation.

Engine Protection Cover

Get additional protection with this add-on that covers the consequential damage to the internal parts of the engine arising out of water ingression or leakage of lubricating oil due to an accident. Be prepared for any eventuality and avoid unexpected expenses with this essential cover.

Roadside Assistance

Experience the freedom of the open road without any worries with this valuable add-on that provides assistance in case your vehicle breaks down in transit. Be it minor repairs, a flat tyre, battery breakdown or towing the vehicle to a service station, this add-on offers the necessary assistance to get you back on track.

Consumable Cover

Don't let small components add up to significant expenses. With this add-on, commonly used components in a vehicle such as nuts and bolts, engine oil, screen washers, and others, are covered. This coverage provides financial protection in case of a claim and ensures that you don't bear any unnecessary expenses.

Return to Invoice Cover

In the event of a total loss, constructive total loss, or theft, this add-on cover protects the gap between the Insured Declared Value and the Invoice Value for purchasing a new vehicle of the same make and model, along with applicable taxes and registration. Enjoy complete peace of mind with this essential cover.

Tyre Protect Cover

Protect your vehicle's tyres with this add-on that offers financial coverage for repair or replacement of tyres in case of accidental damage, cuts or loss. With this essential add-on, you can enjoy a smooth ride without any unexpected expenses.

Choose from these premium add-ons to elevate your motor insurance policy to the next level and enjoy complete peace of mind while on the road.