What is a motor insurance policy?
Having a personal vehicle makes our life much easier. We can travel from point A to point B without being dependent upon public transports. And as we talk about personal vehicles, we also need to discuss the point of road accidents. Indian roads are not smooth everywhere and it can be quite risky for the new drivers to drive on such roads. We cannot surely predict an accident but we can take the measures that can help us in one such situation. One of the most important things therefore to buy is a motor insurance policy.
Motor insurance is a kind of insurance policy that you have to buy when you purchase a vehicle. It covers the vehicles from risks financially. The cars or motorbikes of the policyholder are provided with financial security against damages that are the result of accidents. As per the Motor Vehicles Act 2019, having motor insurance has been made mandatory.
Types of motor insurance
Motor insurance policies are basically of two types, Private Car Insurance and Commercial Car Insurance
Private Car Insurance: When you buy a vehicle for personal use, you buy a private car insurance policy. You can choose from a variety of policies.
Commercial Car Insurance:It is for people who use their vehicle for public transport or commercial purpose.
Types of motor insurance policies
There are many types of motor insurance policies. Here are some of them mentioned:
Third-party car insurance policy: The Motor Vehicles Act of 2019 has even made it mandatory for vehicle owners to avail of a Third Party Cover. If you do not own it, you will be illegally driving your car. This may even result in a penalty. The third-party car insurance policy provides coverage against legal liability that is caused by you to a third party in an accident. This even covers injury or death caused to the third party as well as damage caused to their property by you in an accident. This is in no way related to proving the negligence of the driver because of which the accident took place. This will only cover the third-party liabilities. The damage to your vehicle or theft will not be covered under this policy.
Own damage car insurance policy: This policy helps you with cover against the damages caused to your vehicle because of accidents such as fire and even theft. If your car meets with an accident, this policy provides cover compensation against the expense of repair or replacement of parts of your car. The coverage is provided for the car against natural calamities such as earthquakes, floods, fire, etc., and man-made calamities such as riots, vandalism, and terror attacks, etc.
Comprehensive car insurance policy: When you have this policy, you get benefits of both Own Damage Coverage and Third Party Liability Cover. As the name explains it all, the policy provides complete protection not only to your car but also to you. One of the best features of this policy is that not only the damage due to an accident is covered but it covers the damage to the car for various reasons. The policy also provides coverage to the car against theft. The coverage is provided against damage due tovandalism, glass breakage, fire, floods, tornado, wind storms, and many more. You can also opt for add-on covers like Electrical Appliances cover, Personal Accident cover, Zero Depreciation cover, etc.
Buying a motor insurance policy can be very helpful to you as a vehicle owner. If you wish to have in-depth information about motor vehicle insurance policies, you can take a look at the IIFL website. You can compare the policies and choose one from the lot.