A motor vehicle greatly helps us in our day-to-day lives and contributes significantly to ease our lives in a plethora of ways. But as we all know, with great power comes great responsibilities, and as one of the major responsibilities, an individual should certainly buy motor vehicle insurance.
Having third-party motor insurance at the very least is mandated by the law. If you are planning to buy one soon, then why not learn a little more about vehicle insurance before picking one. Following are some major types of motor vehicle insurance in India.
Based on types of vehicle
1. Car Insurance
With time and technological advancements, the number of cars manufactured in India has also increased to a great level. And this might also be the reason why car insurance is the most popular form of motor insurance in the country. A usual car insurance policy covers damage or loss to a vehicle due to man-made or natural calamities. The policies offer personal accident cover, along with optional cover for co-passengers. Car insurance also covers legal liability to a third party due to any accidental damages by your four-wheeler.
2. Two-Wheeler Insurance
As two-wheelers are one of the most common ways of transportation in India, two wheeler insurances are also quite popular. Typical two wheeler insurance covers against calamities like flood, hurricane, earthquake, fire, theft, storm and landslide apart from third party liability. One can also avail a long-term bike insurance policy which has been introduced by the Insurance Regulatory and Development Authority of India (IRDAI). This is one of the best ways to safeguard your bike as this two-wheeler insurance helps you protect your two-wheeler from third-party rates revisions up to three years.
3. Commercial Vehicle Insurance
All the vehicles that are utilized for commercial purposes, like buses, ambulances, trucks, agricultural vehicles, etc. are insured under commercial vehicle insurance. Just like car and two-wheeler insurance, the policies for commercial vehicles offer protection against loss or damage to the commercial vehicle due to natural or man-made calamities. Third party death or injury claims are also covered within these policies.
Based on coverage
1. Third-party Liability Insurance
Third-party liability insurance is mandated as per the Motor Vehicles Act, 1988 for all the vehicles that are plying on the roads. This type of insurance safeguards you against the loss or injury caused to third-party where the policyholder is responsible for the accident.
2. Comprehensive Insurance
Comprehensive car insurance cover is one of the highest levels of protection you can get for your vehicle. This type of insurance policy covers you for third-party liability, natural/man-made calamities, etc. The policyholder also benefits from a personal accident cover that provides compensation if he is severely injured or dies in the accident.
An insurance policy can be improved through the following add-on covers that will offer you numerous benefits:
1. Zero Depreciation Cover
This is one of the most common add-on covers that people use to enhance their motor insurance. This cover ensures that the policyholder receives a complete claim amount on the value of replaced parts after an accident.
2. Roadside Assistance Cover
In case of an emergency such as battery issues, flat tire, or an empty fuel tank, this cover will provide you support even if you are stuck at a remote location. Policyholders can also benefit from services like battery recharge, fuel assistance, taxi, accommodation assistance, etc.
3. Engine and Electronic Circuit Cover
This cover hedges you against the expenses incurred due to any damages caused to the insured vehicle’s engine or electronic circuits.
4. NCB Protection Cover
The No Claim Bonus is a reward given to a policyholder in case there are no claims made during the policy term. The NCB can amount to a substantial reduction in premium for the next year. Nonetheless, when the policyholder makes a claim in the following years, he stands to lose the increased NCB. The NCB Protection cover, as the name suggests, does not completely invalidate the NCB in the event of a claim but it just cuts down the slab at which the NCB discount was set on the premium previously.
5. Key Replacement Cover
This insurance cover supports the policyholder in case of lost ignition key by hedging you against the cost of a substitute key.
We hope that the above information will help you in picking up the ideal policy according to your needs. If you are willing to buy motor vehicle insurance, you should do it the right way! Nowadays, there are a lot of online insurance portals that provide policies in the comfort of your home without the hassle of extensive paper-work. Assess your motor insurance needs as thoroughly as you can, and make the right choice.
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