Different Kinds Of Motor Insurance That You Get In India

5 min read

Most of us know what is motor insurance but we do not know the different kinds of car insurance policies that are available from car insurers in India.

The thing with car insurance is that it is just like all other insurance policies out there. However, it does have its difference from the other forms of insurance as well. It is mandatory for people who own a vehicle of some sort or the other. As the name of these policies would suggest – these apply to all motor-driven vehicles in India such as motorcycles, jeeps, cars, and commercial vehicles, to name a few.

Why is it mandatory? 

So, you now have a clear answer to this question – what is vehicle insurance? Now, you may be wondering why the government has made this mandatory. Well, the national government of India has done this so that you – the owner of a car – as well as other car owners on the road, can be safe. When you compare the advantages that you get from these policies in case anything goes wrong, the money you pay as a premium each year simply pales in comparison. A lot of people think that car insurance only covers the vehicle that has been insured but that is a wrong idea.

These policies are normally classified based on the kind of vehicle that you are insuring as well as the sort of coverage that you are looking for.

1. Private car insurance policies 

When you think of the different types of motor insurance that you get in India this is perhaps the first name that comes to mind. This is the sort of car insurance that you need to take if you have a private vehicle. Such a policy would cover your car for the damages that it may sustain owing to the likes of accidents, natural disasters, fire, and theft, to name a few. It can also cover you – the owner of the car – in case you suffer any injury while you are in the car.

2. Two-wheeler insurance policies 

This is also one of the various types of vehicle insurance that are available in India. As the name of the policies would suggest, they cover two-wheelers such as bikes and scooters. These policies too provide your vehicle coverage against damages that may be sustained in accidents, natural disasters, fire, theft, etc. It also provides coverage for injuries and damages suffered by a third party in an accident involving your vehicle. Such policies are also legally obligated to provide you with personal accident coverage. Such coverage can extend to the passengers as well.

3. Commercial vehicle insurance policies

When you think of the most prominent types of motor insurance policy in India these rank right up there with the best. As the name would suggest, they are not supposed to cover the vehicles that you own personally. Such insurance covers a wide range of vehicles such as the following:

  • trucks
  • buses
  • heavy commercial vehicles
  • light commercial vehicles
  • multi-utility vehicles
  • agricultural vehicles
  • taxi/cab
  • ambulances
  • auto-rickshaws

4. Third-party vehicle insurance policies 

When you think what are the types of motor insurance in terms of the type of coverage this is the one that comes to mind first. This is simply because these are the ones that have been made mandatory by the Indian government for all vehicle owners. These policies would only provide coverage for the losses and damages suffered by a third party, their property, and their vehicle in an accident.

5. Comprehensive car insurance policies

The comprehensive car insurance policies are perhaps more valuable than the third-party policies since they cover the damages sustained by third parties as well as you – the policyholder.

So, if you are looking for the best types of motor insurance in India this is something that you should consider seriously.

Difference between these two types of policies in terms of coverage

The following table provides you with an idea of the kind of coverage that you can expect from these two types of policies:

Coverage  Provided by comprehensive policies Provided by third-party policies
damages and losses to your vehicle in an accident Yes No
damages and losses to your vehicle in a fire Yes No
damages and losses to your vehicle in anaturaldisaster Yes No
damages to vehicles of third parties Yes Yes
damages to the property of third parties Yes Yes
personal accident cover Yes Yes
death or injuries of the third party in an accident Yes Yes
theft of your car Yes No
pick-up and drop at doorstep Yes No
customizing your IDV (insurance declared value) Yes No
customized add-ons for additional protection Yes No

The add-ons that you get with the comprehensive policies 

The comprehensive vehicle insurance policies provide you with a wide range of add-ons such as the following:

  • zero depreciation
  • engine protection cover
  • roadside assistance
  • consumable cover
  • return to invoice cover
  • tire protection cover

So, now you know why these are among the most popular types of vehicle insurance out there.

The zero depreciation cover is one of the major reasons why comprehensive policies are the most-bought types of motor insurance policy in India. With this coverage, you can make sure that the value of your car never depreciates. The engine protection cover helps you financially against the damages suffered by the engine of your vehicle. With the help of roadside assistance, you can be sure that you would get help for your vehicle no matter where and when you are stranded.

Read More: Who is a ‘First Party’ in car insurance policy

Conclusion 

So, now we can assume that you know motor insurance meaning and its various varieties. Now, you may be wondering why someone should insure their car comprehensively when they personally stand to gain basically nothing from it. Well, there are certain situations where a third-party policy can turn out to be the wiser choice for you. This is especially when you do not use your car every day. With such occasional usage, the chances of an accident are also reduced drastically. Also, in case you are looking to sell your car soon, it makes no sense to pay the high annual premiums that the comprehensive policies entail.

SHARE THIS ON
Author Bio
Author Image

Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.

Licenced by IRDAI License No. 261; License Validity : 17-05-2022; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2022 Mahindra Insurance Brokers. All Right Reserved.

SPEAK TO AN EXPERT