Motor insurance is an insurance policy designed for four-wheelers, commercial trucks, two-wheelers, and other road vehicles. It has been made mandatory for all vehicles such as cars, bikes, scooters, and trucks that are plying on the roads in India. Vehicle owners are required to avail motor insurance even for commercial vehicles as well. Nowadays, you can get vehicle insurance online and pay the policy premium as well.
A vehicle insurance policy comes with several features that can be very beneficial for the policyholder. Here are some features that you should know:
Motor vehicle insurance can be broadly classified under below heads:
Car insurance gives coverage against accidental loss or damages to own car or a third party caused due to the insured car. When choosing a car insurance policy, a person should always compare the premium offered by various insurers to get best deal. The amount of premium would majorly depend on the make & value of the car, the state from which it is registered and the manufacturing year.
Two wheeler insurance or bike insurance provides financial and legal protection to bikes and scooters. It covers two-wheeler vehicles against any own damages as well as any accidental loss caused to third-party property or person. Similar to car insurance, the premium of a two-wheeler policy depends on the age of the bike, its make & model, registration year, etc.
Commercial vehicle insurance helps all commercial vehicle drivers to reduce losses they might incur due to damage to their vehicle. It covers a commercial vehicle from unforeseen damages like theft, fire, collisions and third-party damages as well. Here commercial vehicles include those vehicles that are not used for personal purposes, like goods carrying vehicles, trucks, etc.
The main three types of motor insurance policies offered in India include:
It is a mandatory policy and covers a third person who has been injured in an accident involving you and your vehicle. It compensates against third-party death, injury and property damage. The policy doesn’t provide any direct benefit to the insured. As per the Insurance Regulatory and Development of India (IRDA), no insurer can decline to underwrite third-party insurance.
Recently introduced by the IRDAI, a Standalone own damage cover protects the insured vehicle against any own damages arising out of unforeseen incidents like accident, theft, fire etc. This motor insurance policy can be purchased if you already have a third party cover and also want to cover own vehicle against financial losses.
This cover is an add-on to the third-party insurance plan and protects the owner of cars, bikes, scooters and trucks from financial losses caused by damage or theft of the insured vehicle. Besides insuring vehicles, it also provides third-party coverage. Thus, comprehensive motor vehicle insurance provides wider coverage and also carries a higher premium.
Do you know, that around 4 Lakh people meet with road accidents every month? A survey was conducted by the World Health Organization Report, which stated that in 2012, India had recorded the highest number of road deaths in the world.
Considering the high number and poor conditions of the road, motor insurance has become a necessity to drive on the Indian roads. Motor insurance gives financial protection not only to you but also covers third party damages. A few private insurers offer a large number of other utilities to the policyholders, like:
It is mandatory to get insured with a third-party insurance plan in India. As the name suggests, a third-party plan provides cover for the third-party liability and comes with a specified set of coverage. But when you decide to purchase a comprehensive insurance plan then it is suggested to consider several things to make the most out of that insurance plan. So here are the things that you need to consider while purchasing a motor insurance plan.
Here are the parameters that can affect the vehicle insurance policy premium.
When you purchase motor insurance online, you get to compare different plans in the comfort of your home. Due to digitalization, several insurance companies have launched their mobile app to make your buying experience even smoother. Since an insurance plan come with validity, the policyholder is required to renew the insurance plan before expiration. Renewing the insurance plan online has its own advantages. They are as follows:
In an initiative to make motor insurance more affordable for buyers, IRDAI updated the rules in 2018 and 2020. Check the table below to learn about those updates.
|Insurance Cover||IRDAI 2018 Regulation||IRDAI 2020 Regulation Update|
|Third-party Only||3 years third-party insurance for car and 5 years third-party cover||Retained|
|Third-party With Comprehensive Cover||3 years and 5 years third-party with Comprehensive cover||3 years and 5 years third-party with 1-year Comprehensive cover|
|Standalone OD Cover (With Mandatory third-party cover)||3 years & 5 years Comprehensive cover||1-year Own Damage cover|
Here are some other updates made by the Insurance Regulatory & Development Authority of India.
With the multiple online ways of purchasing insurance plans, Policybazaar Insurance Brokers Private Limited lets you compare different insurance plans in one place. Some other advantages of purchasing motor insurance from Policybazaar.com include:
The document and formalities involved in a vehicle insurance claim settlement will depend upon the type of vehicle and nature of the loss.
Filing for a Claim in Case of Damage to Owned Car/ Two Wheeler/ Commercial Vehicle
To initiate the process, the policyholder is required to submit a detailed estimate of the loss to the insurance company. Independent automobile surveyors with engineering background are given the task of assessing the reason and extent of the loss. They carefully inspect the damaged vehicle and submit their survey report with the insurance company who will review and examine it in accordance with the recommendations mentioned therein. The usual practice is to authorize repairs with the repairer to whom the letter is issued in this regard.
Apart from Claim Form, Other Documents Required for Processing Claims are:
Third Party Claims
On receipt of the notice from the insured or third party, the matter is transferred to the advocate. Complete information about the accident is obtained from the insured along with the following documents-
Apart from the NCB, there are a few discounts available on the own damage premium :
09 Jan 2023Yes, your comprehensive car insurance policy may cover the damages
03 Jan 2023As per the IRDAI guidelines, all motor insurance sectors including
09 Dec 2022Roadside Assistance is an add-on cover offered with your
06 Dec 2022No, any damage to the nut bolt or any other consumable of your
05 Dec 2022Third-party car insurance is a mandatory cover as per the motor