Motor insurance is an insurance for all types of motor vehicles including motorcycles, cars, jeeps, commercial vehicles and so on. A motor insurance policy has been made compulsory for every vehicle owner, as it is a crucial financial protection tool for the general safety of the rider and the vehicle. In India, there are different types of motor insurance policies that you can choose from. You must first assess your insurance requirements and then choose a policy that safeguards you in the most optimum way.
When you are choosing a motor insurance plan, consider-
- The type of vehicle you own or will be purchasing.
- Amount and type of coverage you want for your automobile.
By opting for the right motor insurance policy, you can financially cover yourself and your vehicle against any damage and have a cover in case of any third-party liability too.
Different types of motor vehicles
Here are the 3 different types of Motor Insurances –
- Two-wheeler Insurance policy
On purchase of a two-wheeler in India, like a scooter or bike, it is mandatory to have a two-wheeler motor insurance as per the Indian government. With the right insurance plan, your two-wheeler will be covered against damages occurring from natural disasters, fire, accidents, or even theft. This type of an insurance policy also offers a personal accident cover for the owner/rider of the vehicle and can be bought as an add-on for the passenger too.
- Private Car Insurance policy
With the purchase of any new private car, it is mandatory to get your motor insurance policy. An ideal car insurance plan will cover the owner and the vehicle against natural disasters, theft, and other such mishaps etc. It will also offer third-party cover for damage caused due to accidents. This liability cover is for the third-party and their vehicle, however, it can be extended for the policyholder and their vehicle as well.
- Commercial Vehicle Insurance Policy
Commercial Vehicle Insurance offers financial coverage for all vehicles that are not bought by the policyholder for any personal use. Vehicles like trucks, taxi/cabs, ambulances, buses, rickshaws, agriculture vehicles, tempo, and many other light and heavy commercial vehicles are covered under this type of motor insurance in India.
Types of Motor insurance policies
Once you have narrowed down on the type of vehicle and the purpose for purchasing it, there are two basic types of motor insurance policies you can avail.
- Comprehensive motor insurance policy
As the name suggests, a comprehensive insurance plan will cover most conceivable parts of the vehicle, thereby offering the policyholder overall security. Your vehicle is covered by your insurance plan towards a variety of natural events that could cause damage, like fire, natural disasters, severe weather conditions, etc. It is also covered in an event of a third-party accident, where this type of an insurance cover will sustain damages by both the parties.
You can also opt for various riders like zero depreciation, roadside assistance, engine protection, tyre protection cover, and more, to further customise the policy with extra benefits as per your need.
- Third-party motor insurance policy
Under a third-party motor insurance, the insurance provider agrees to indemnify the policyholder if they are held accountable for damages done to a third-party vehicle or injuries sustained by the other rider. This is a more direct cover which offer liability insurance to the owner of the vehicle against any claims raised by a third-party. If any damage is caused to the third-party’s vehicle in an accident, then your motor insurance policy will cover the expense.
This type of motor insurance policy, unlike the comprehensive policy, does not offer wholesome protection to you or your vehicle. Hence, it is ideal to understand your vehicle’s need and apply for an insurance plan that suits you the most.
Conclusion
Before applying for an insurance policy, first understand your need and purpose for the insurance and then determine the type of financial cover you will need, and then opt for a motor insurance policy accordingly.
