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Motor Insurance

 

Motor insurance is an insurance purchased for vehicles such as cars, trucks, two-wheelers and other on road vehicles. Also known as Vehicle or Auto Insurance, its primary objective is to provide protection against damage and liability resulting from accidents such as collisions.

Why You Need a Motor Insurance?

Under Indian MotorVehicle Act, it is mandatory for the owner to insure an automobile with third-party liability policy. This law applies to all vehicles in private and commercial use and states that driving without a valid cover is a penal offense. However, such liability polices do not cover other damages fulfilled by comprehensive motor insurance.

The payment towards the aftereffects of accidents can create a dent in your finances. Having a cover allows you to fulfil liability towards injury or damage to life and property;hence a comprehensive motor cover is beneficial. As automobiles and their repairs are usually expensive, a comprehensive motor insurance not only covers the damage, it also helps you bear the liability in case of accidents. Moreover, such package policies also provide coverage for claims due to the following perils :

 Fire, explosion, self- ignition, lightning

 Theft and burglary

 Earthquake

 Flood, storm, cyclone, hurricane, tempest, inundation, hailstorm, frost

 Accidental external means

 Malicious act

 Terrorism acts

 Land slide / rock slide

How Is Your Premium Decided?

Every insurer takes into consideration these important parameters for premium determination :

 Insured’s declared value (IDV)

 No Claim Bonus (NCB)

 Add-on Covers

 State of registration

 Geographical location

 Age of vehicle

Kindly refer to Motor FAQs for detailed information.

Types of Motor Insurance

Third Party insurance

Made compulsory by law of India, this insurance is necessary for plying your vehicle on public roads. Third Party insurance does not cover the driver or his vehicle. It usually covers damage to property, accidental death and injury to third party.

Comprehensive Insurance

In addition to third party cover, comprehensive insurance also provides Own Damage cover.

Motor Insurance Exclusions

The following contingencies are excluded by insurance providers :

 Not having a valid driving license

 Accident taking place beyond geographical limits i.e. Outside India

 If the driver is intoxicated or under influence of drugs and alcohol

 Electrical and mechanical breakdowns

 If the vehicle was being used for unlawful purposes

 Loss or Damage attributable to War, Mutiny, or Nuclear risks

Add-on Covers

Every insurer features their own variations of add-on covers to give your vehicle a comprehensive protection. Add-on covers commonly available are as below :

Zero Depreciation

This cover ensures that you receive the full claim for the value of parts replaced post-accident. With this cover, the value of your motor parts is protected due to reduction in value over time. It is preferable for new cars, as the premium goes higher if it is availed on an older vehicle.

No-Claim Bonus Protection (NCB)

No claim bonus is a bonus received by the insured on not claiming during a policy period. This cover gives you discount on Own Damage Premium even after past claims, which is otherwise lost.

Personal Accident Cover

If you or your driver are involved in an accident, this cover allows you make a full claim in case of bodily injury or death.

Engine Protection Cover

It covers damages to the engineand its parts like piston, connecting rods, etc. It includes damage due to the leakage of lubricating oils, water ingression, damage to the gearbox and hydrostatic lock which happens when engine comes in contact with water.

Daily Cash Allowance

Your insurance company will pay you a certain allowance (as determined in the policy schedule) if your car is under repair in an authorized garage.

Roadside Assistance

The key benefits that are covered include - battery breakdown, flat tyre, towing and fuel provision.

Key Replacement

Under this cover, the insurance companies covers you the expenses towards substitution of the lost key.