Motor insurance, also known as vehicle insurance, is a type of insurance policy that protects you financially if your vehicle gets damaged or causes damage to others. It covers cars, bikes, scooters, and other motor vehicles.
Why is motor insurance important?
- It is legally required to drive on public roads in most countries, including India.
- It protects you from financial losses due to accidents, theft, natural disasters, or third-party damage.
- It gives peace of mind while driving.
Types of Motor Insurance:
- Third-Party Insurance (Mandatory):
- Covers injury, death, or property damage caused to another person by your vehicle.
- Does NOT cover damage to your own vehicle.
- Required by law under the Motor Vehicles Act.
- Comprehensive Insurance:
- Covers third-party liabilities and also damage to your own vehicle.
- Protects against accidents, fire, theft, natural disasters (like floods, earthquakes), and more.
- Recommended for full protection.
- Own Damage (OD) Cover:
- Covers only your own vehicle’s damage (not third-party).
- Can be bought with third-party insurance for better coverage.
What is covered under comprehensive motor insurance?
- Road accidents
- Fire or explosion
- Theft or burglary
- Natural disasters (floods, storms, earthquakes)
- Riots or vandalism
- Personal accident cover for the owner-driver
- Third-party injury or property damage
What is not covered?
- Driving without a valid license
- Drunk driving
- Regular wear and tear
- Mechanical or electrical failure
- Using the vehicle for illegal activities
- Damage outside policy terms
Add-on Covers (Optional benefits):
- Zero depreciation: Full value of parts replaced without considering depreciation.
- Engine protection: Covers damage to the engine due to water or oil leakage.
- Roadside assistance: Help during breakdowns (like towing or flat tyre support).
- Return to invoice: Full invoice value is paid if the vehicle is stolen or totaled.
NCB protection: Keeps your No Claim Bonus intact even after a claim