Knowledge Centre

Types of Motor Insurance

Automobile technology has witnessed rapid strides in their technological development from its humble beginnings in the late nineteenth century and a global spread through the whole of twentieth century . Travelling through car and two wheeler has become an inseparable part of life, but travel on the road comes with it’s own share of risks.

In extreme situations, automobile owners may find themselves saddled with high financial liability if proper care is not taken. What is the way out for automobile owners against such potential risks related to automobiles? What can help in such situation is a Motor Insurance. Motor Insurance deals with the insurance covers for the loss or damage caused to the automobile or its parts due to natural and man-made calamities. It provides accident cover for individual owners of the vehicles while driving and also for passengers and  third-party legal liability.

Motor insurance can be availed in three forms

  • Private Car Insurance

  • Commercial Vehicle Insurance

  • Two Wheeler Insurance

Private Car Insurance - Private Car Insurance should be first thing to be taken after purchasing a Car. A financial safeguard for a large variety of situations, Private Car Insurance is one of the most important purchases to make. Whether it is a natural disaster such as an earthquake or flood; or somebody damages or steals the car, a Car Insurance takes care of it all. With compulsory factors such as third-party liability, one can ensure that any damage occurred to another person’s life or property by his vehicle will be covered in a claim. You can also opt for the Motor Insurance Add-on plans, such as zero depreciation, engine & gear box protector, emergency assistance, cost of consumables etc. which enhances your coverage for better protection, in addition to your standard motor insurance policy.

Commercial Vehicle Insurance - To keep the business going, it is imperative for business owners to have the vehicles owned by them insured. General insurance providers offer packaged commercial vehicle insurance policies which protect businesses from potential financial loss to the vehicle arising out of accidental loss or damage, the legal liability towards third-parties for bodily injury, death or property damage on account of any accident involving the vehicle. Insurance is available on commercial vehicles like trucks, Private as well as Public Carriers, Trailers, Taxis, 3-wheeler Autos, Buses, Miscellaneous and Special Types of vehicles – Agricultural Mobile Rig, Shovels, Grabs, Tractor, and Excavator etc. Basic Motor Insurance coverage include:

  • Loss or damage by accident, fire, lightning, self-ignition, external explosion, burglary, housebreaking or theft, malicious act.

  • Liability for third party injury/death, third party property and liability to paid driver

  • On payment of appropriate additional premium, loss/damage to electrical/electronic accessories can be covered.

Two Wheeler Insurance : As soon as you purchase a two wheeler, getting two wheeler insurance is a mandatory requirement as per the Motor Vehicles Act 1988 and Motor Vehicle Amendment Act 2019. It provides coverage for from any financial loss to the vehicle due to accidental loss or damage, the legal liability towards third-parties in event of bodily injury, death or property damage. It also offers coverage in event of damage due to natural calamities or manmade events.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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