Motor insurance can be taken for two-wheelers and cars, including private and commercial vehicles. General insurance companies in India also offer motor insurance for used vehicles, based on the condition in which they are purchased.
- Car Insurance – Most of the leading general insurance providers offer for private and commercial vehicles. The insurance premium for commercial cars will be higher than that for private cars. Hence, it is necessary to buy the right kind of insurance for your vehicle, based on the purpose for which it is used. Usually car insurance policies are offered for a policy term of 1 year. The policyholder will have to get in touch with the insurance company to renew the policy after that.
- Two-wheeler Insurance – Almost all leading general insurance providers offer two-wheeler insurance policies.for the protection of bikes and scooters. The coverage offered by these policies are similar to that provided by car insurance plans. However, the policy term for bike insurance plans can be extended to 2 or 3 years.
The incidence of policy expiry/lapsation was seen to be high in the case of bike insurance. Long-term two-wheeler insurance policies were a solution to this problem. These plans are offered by general insurance companies to enable customers to enjoy insurance protection for an extended duration without the hassle of frequent renewals.
The coverage offered by a car insurance plan is similar to that offered by a two-wheeler insurance policy. A motor insurance plan can be purchased with any of the following coverages:
- Third-party motor insurance – Also referred to as liability-only plan or act-only insurance, this is a basic insurance scheme that offers minimal insurance protection. It safeguards the policyholder from financial liabilities to a third party. This includes liability for injuries, death, or property damage of the third party.Third party motor insurance does not offer insurance coverage for the insured vehicle itself. This insurance plan also does not usually include personal accident cover for the owner-driver of the vehicle. Since it offers limited coverage, the cost of a third-party insurance plan is low. This is also the minimum level of insurance a motor vehicle will have to be equipped with in order to ply on the roads (as per the provision under the Motor Vehicles Act, 1988).
- Comprehensive motor insurance – This is an elaborate insurance cover offered by all insurance companies in India. It is also referred to as a package policy and it offers a wide range of coverage, as indicated in the inclusions section below.The coverage of a comprehensive motor insurance plan can be amplified through the purchase of add-on covers. Some of the most popular riders in car insurance are zero depreciation cover, return to invoice (RTI) cover, consumables cover, No Claim Bonus (NCB) protect cover, and engine protect cover. It should be noted that unlike car insurance, some insurance companies in India do not offer an elaborate set of add-on covers for two-wheelers. So, you should check with your insurer on the riders available to protect your bike.
