What is Motor Insurance?
Having valid motor insurance is compulsory in India to protect vehicle owners from potential financial risks. It is the best form of security that you can acquire to prevent significant expenses that result from an accident. The Government imposes the compulsion for the safety of the individuals who travel via motor vehicles daily.
What's Covered Under a Motor Insurance Policy
Accidental Damage: To your car or the belongings in the car in case of an accident
Theft/ Burglary: Insurance compensates the insured for losses incurred due to theft
Fire Damage: This damage may be directly caused by the flames
Natural Calamities: Floods, earthquakes, storms
Third Party Damage: It covers physical injuries, damage to the vehicle, damage to the property, and death.
Malicious Damage: When an unknown person/vehicle incurs damage to the parked vehicle
What's Not Covered Under a Motor Insurance Policy
- When the driver does not have a valid driving license
- When the driver is under the influence of intoxicating liquor or drugs
- Outside the geographical area stated in the policy
- In violation of the "Limitation as to use" clause in the policy
- War, invasion, the act of foreign enemies
- Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failures or breakages.
Types Of Motor Insurance Policy
Third-party Insurance Policy: Provides coverage only to third parties in the event of an accident or damage to any third-party property. The key thing to note is that third-party motor insurance does not cover damages to the automobile itself.
Package Motor Insurance Policy: In the event of an accident, provide wholesome coverage not just to third parties but also to the vehicle itself. The cost incurred due to the repair and replacement of damaged parts of the vehicle will be covered under the Insurance Policy.