Ever wondered what’s motor insurance? it is mandatory underneath Indian laws in case you own a motor car. Motor coverage enables you to meet any surprising fees that can stand up if your vehicle meets with an accident. Like other coverage policies, motor insurance coverage functions as a chance-mitigating tool. It protects you from growing a massive dent in your finances whilst you face an emergency. Motor insurance is unique insurance coverage intended for automobile. Proprietors to shield them from incurring any monetary losses that can get up because of damage or robbery of the automobile. Whether you have got a private vehicle, an industrial vehicle, or a -wheeler, you should buy motor insurance coverage.
You will come across three different types of insurance policies in the market that provides coverage for motor vehicles:
● Third-party insurance policy: Obtaining this insurance policy is a statutory requirement. Without this policy, it is illegal to drive your motor vehicle in India. The chief objective of this policy is to provide coverage for any injury caused to a third party by your vehicle. Therefore, in case of an injury or death of a third party, the third party can raise a claim under such a policy and receive the insured amount.
● Own-damage insurance policy: In case of any damage to your vehicle due to fire or rain, or theft, you can raise a claim under this policy to compensate you for the expenses incurred for repairing your vehicle.
● Comprehensive insurance policy: This type of insurance policy provides you the best of both worlds as it provides both third-party cover and own damage cover. Even if your car gets stolen, you can file a claim under such a policy and get compensated. Typically, most policyholders prefer purchasing a comprehensive insurance policy. And also take on various add-on covers such as zero depreciation cover, personal accident cover, etc.
Bear in mind that you cannot raise any claim under any type of motor insurance policy, if:
1. Driving your vehicle without a valid driving licence.
2. If you are driving the vehicle under the influence of drugs or alcohol.
3. Any unlawful activity while using the vehicle.
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