Now, some people might think that a bike offers better ease of commuting. It is partially correct and here’s why:
Distance- A bike is considered as a preferred mode of commuting for short distance. For long distance, commuting on a car is a safer option.
Weather Conditions- A bike won’t protect the rider/pillion rider against harsh weather conditions be it scorching heat or spine chilling cold. On the other hand, commuting in a car protects the driver/passengers against the outside weather conditions.
When your car protects you against such extreme weather conditions, you need to protect your car against various risks with the help of a motor insurance policy.
You know why?
It fulfils your legal liability of buying mandatory car insurance in India.
Let’s understand what car insurance is:
A car insurance policy protects the vehicle owner against the covered financial loss(es) due to damage/theft of the insured vehicle (as per the applicable terms and conditions).
As per law, it is mandatory for car owners to buy car insurance for their vehicles plying on the Indian roads. Car insurance fulfils vehicle owner’s legal liability arising due to bodily injury/ loss or damage caused to third-party/ property.
In India, two types of car insurance plans are offered:
While having a comprehensive insurance policy is optional; having a third-party vehicle insurance policy is mandatory.
Note- The policyholder can opt for additional riders and avail customized insurance coverage.
In case the offered car insurance coverage doesn’t fulfil your insurance expectations, you can opt for car insurance add-ons offered by car insurance providers. It will enhance the offered car insurance coverage and will fulfil your individual insurance expectations.
Car insurance add-ons are also known as car insurance riders or car insurance additional riders.
While add-ons come at a nominal premium, they increase the scope of insurance coverage as per the insurance expectations of the insurance buyer. Keep in the mind that generally these additional riders are offered for the cars that are not more than 5 years old.
Mentioned below are a few of many car insurance add-ons:
Note- Be it a third-party insurance plan or a comprehensive insurance plan, always know motor insurance details of your opted plan. It will help you to get a clear understanding of policy coverage and will leave no room for doubts/ assumptions. Additionally, you will be able to decide whether you want to opt for the add-on(s) or not. If yes, it will help you decide which one to opt for.
When it comes to paying attention to motor insurance details, some insurance buyers turn a blind eye. Unfortunately, it ends up getting their claims rejected.
Now that you have the answer to the question- What is motor insurance- let’s move to what is covered by car insurance and what isn’t covered by car insurance.
Generally, the comprehensive car insurance plan provides the following coverage:
Generally, the comprehensive car (motor vehicle) insurance plan doesn’t provide the following coverage:
Note- Some exclusion might cease to exist in case the policyholder ops for specific additional riders.
The motor insurance policy premium is affected by many factors. Here are a few of them:
While Mumbai, Delhi, Chennai, Bangalore, Kolkata, Pune, Ahmedabad and Hyderabad, falls under Zone A, the rest of India falls under Zone B.
For the vehicles registered under Zone A, higher premiums compared to vehicles cars registered under Zone B.
This question pops up in the mind of various insurance buyers/ renewers.
Everyone wants to reduce the insurance premium. Here’s the catch- Less insurance premium means less insurance coverage. When it comes to the reduced insurance premium, insurance experts recommend to not compromise on coverage.
If you compromise on coverage, you might save a few pennies on insurance premium but in case of a claim, you might end up spending more from your pocket. It will nullify the basic need of having car insurance in the first place i.e. financial safety of the car buyer.
Here is how you can reduce the premium for a motor insurance policy without compromising on the insurance coverage:
There are two modes of buying motor insurance policy in India:
Note- You can use car insurance calculator to compare insurance premium of various plans.
Verdict- Nowadays, insurance buyers make the best use of advanced technology and buy motor insurance policy online. In order to ensure absolute transparency, car insurance experts recommend buying car insurance online. Not just that, they recommend going through the fine print of policy copy to have a clear idea of your car insurance details.
Over to You
Now that you know everything about motor insurance in India, we hope you will be able to make an informed insurance decision. Keep the points mentioned in the article at the time of buying a car new insurance plan or renewing/ porting your existing car insurance plan. When you get the policy copy make sure you take some time out to check vehicle insurance details/ car insurance details. Having knowledge about policy coverage will help you to ensure that you don’t file a baseless claim.
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