Every day, there are news reports highlighting the increasing number of road accidents. It has now become a regular feature in our daily news updates, and that's why motor insurance is essential for all.
With a 158% increase in vehicular sales as of October 2022, there is also an increase in road accidents as well. May it be due to a lack of proper civic infrastructure or improper driving, road accidents are rampant. Such numbers are enough encouragement to insure our vehicles.
A motor insurance policy helps you protect against financial losses in case your vehicle gets damaged, stolen or causes someone else a bodily injury or damage to their vehicle/property. Motor insurance not only covers accidental damages but losses incurred due to natural calamities as well.
Although under the Motor Vehicles Act, of 1988, the Government of India requires all vehicle owners to possess at least the most basic insurance plan, it is advisable to explore and choose the right policy to ensure maximum security as well as returns.
Why Motor Insurance is essential
Motor insurance safeguards you against any undue and unexpected financial losses. Often our vehicles gets damaged in an accident, leading to expensive repairs. Depending on the kind of insurance one chooses, you can get aptly reimbursed for those repairs incurred.
Owning an insurance policy also makes sure a vehicle owner gets authentic and reliable repairs for their vehicles from brand-authorised service centres. This enables us to avail of discounted/new branded spare parts, which in turn maintain the efficiency of your vehicle.
We often hear about car/scooter thefts, which have become a common occurrence. May it be a privately owned vehicle or a commercial one, one must always anticipate the risk of its theft, which will end up causing immense financial and mental distress to any vehicle owner.
Motor insurance helps you claim the cost of the vehicle, post depreciation value, saving you from these unexpected losses.
Benefits of Motor Insurance
Apart from avoiding fines and securing our vehicles, motor insurance has some added benefits for its policyholders. Although the list is long, here are some important benefits of motor insurance:
Legal issues/complications
Aid against legal complications and liabilities incurred due to damage caused to a third-party individual/business/property/vehicle. Relief from hefty legal fees and claims incurred.
Protection against bodily injury/death caused to others:
A third-party insurance covers damages and medical reimbursements filed by an individual who has been injured by your vehicle, causing minimal financial distress to the policyholder. Although the GOI has placed a capping of 7.5 Lac INR * over vehicle/property damage, there is no compensation limit for medical injuries or in case of death.
Protection against bodily injury/death caused to self
Covers medical bills incurred due to injuries sustained by the owner/driver of the vehicle in an accident. The capping over compensation for the same is dependent on the value of the policy purchased.
Reliable repairs from brand-authorised service centres
Motor insurance is filed mostly via a brand-authorised service centre. One can avail a claim post inspection of the vehicle and incident occured. This also ensures a policy-holder gets reliable repairs and gets assured and genuine spare parts. The value of claims over vehicle damage keeps reducing after every claim and is dependent on the IDV (Insure Declare value).
Types of Motor Insurance - A brief overview
Choosing the right motor insurance for you is dependent on several factors -
Type of vehicle
Amount of Insurance
Purpose of your vehicle
Number of vehicles
Comprehensive or Third-party policy requirement
Individual owners or company
Depending on these factors, you may choose the type of motor insurance that best suits your needs and comfort.
Majorly motor insurance can be labelled into three categories:
Private car insurance
Four-wheeler vehicles (cars, jeeps, EVs) owned by any individual for personal use should choose four-wheeler motor insurance options offering comprehensive coverage. Comprehensive motor insurance offers multiple options to policyholders which they can choose according to their convenience, budget and requirements. It is advisable to buy a comprehensive plan inclusive of a third-party liability cover to ensure all-rounder coverage for any individual.
Two-wheeler insurance
Two-wheeler vehicles (Motorbike, scooter, scooty etc) owned by any individual for personal use should choose two-wheeler motor insurance options that offer comprehensive covers. A comprehensive motor insurance offers multiple options to policyholders which they can choose according to their convenience, budget and requirements. It is always advisable to buy a comprehensive plan inclusive of a third-party liability cover to ensure all-rounder coverage for any individual.
Commercial vehicle insurance
Any vehicle/vehicles being used for commercial/business purposes (car, bike, truck, carriers, tractor, multi-utility) fall under commercial vehicle insurance. It is important to safeguard your business against legal liabilities and damage caused to own/others vehicles. One can also choose to insure multiple vehicles/fleet with a single policy as well. t is always advisable to buy a comprehensive plan inclusive of a third-party liability cover to ensure all-rounder coverage for any business owning multiple vehicles.
Choosing the right motor insurance policy can help you save your money, give you a profitable investment opportunity and help save someone else too. So, compare your options and select the right option for a safer future.
