Different Types of Motor Insurance in India
Motor vehicles like cars, buses, bikes and other commercial vehicles are for satisfying needs more than a status symbol. Different kinds of vehicles have different purposes to serve. It is rightly said that “gaadiyan humare jeevan ki moortiyan hae.” We size up our needs for which we buy vehicles.
While you think of owning a motor vehicle, you mustn’t miss buying an insurance policy also. In India, we have broadly categorized vehicles into Two-wheeler, Commercial Vehicle, and Private Cars.
Types of Motor Insurance in India
Win the roads but not without insurance. Motor Insurance in India gained popularity when the number of collisions and deaths rose due to reckless driving. Recently, to relieve you from the financial burden the Government of India has made Third-Party Liability cover mandatory. The Own Damage Insurance is completely the choice of the owner of the vehicle.
Let us now know the types of Motor Insurance in India:
- Commercial Vehicle Insurance: Taxi cars, trucks or buses, minivans, tractors, heavy commercial vehicles, ambulance, auto-rickshaw, and other such vehicles are used for commercial purposes. It implies that these vehicles are put to use to earn money. Such vehicles are specifically not put to personal use.
If you buy a Commercial Vehicle Insurance online, you can buy either a Package Policy for it or a Third-Party Liability Policy only. If you go for a Comprehensive Policy, then you secure your future expenses in case of any damages that may arise from natural calamities, accidents, theft, and third-party liability. Under this type of motor insurance also, the personal accident has been made compulsory.
- Four-Wheeler Insurance or Private Car Insurance: Owning a car was a luxury some 25 years back when the Indian market had cars from manufacturers like Maruti, Fiat, and Ambassador from Hindustan Motors. Over the last few years, we have progressed and now there are private cars from Honda, Mercedez, Bentley, and others. Buying insurance for these cars sold for personal use is important because the cost of repairs and spare parts of these cars are very expensive. So getting a Comprehensive Cover becomes important.
The Comprehensive Package Policy will offer you protection from natural calamities, man-made disasters, theft and burglary, and third-party liability policy. For Four-wheelers also, the personal accident policy is compulsory. The minimum coverage limit is Rs.15 lakhs. Other than this, the Third-Party Liability cover is unavoidable and one must buy it before driving the vehicle on road.
- Two-Wheeler Insurance: Reaching an all-time high, the number of two-wheelers in India has reached a total of 21 million. Vehicles like a standard bike, scooter, touring bikes, mopeds, racing bikes, and others are categorically insured under the Two-Wheeler Insurance. It depends on the owner of the bike to choose from the two types of policies available.
The Package policy for two-wheelers will protect you from natural and man-made calamities, burglary, theft and riots or strikes. You can also secure yourself for expenses after an accident. The personal accident cover is again a compulsory cover for the owner but you can buy it for passengers also.
Driving without an insurance policy will be troublesome for anyone. They say “Mat Karo Itni Masti kyuki Zindagi nahi hai sastee.” It implies that driving properly is one responsibility and buying a Motor Insurance is another.
What is not covered under Motor Insurance?
A Motor Insurance in India does not cover any vehicles like private car, two-wheeler, and a commercial vehicle for losses that may arise from:
- Depreciation, Failure or Breakage, and Mechanical and Electrical Breakdown.
- Outside the territorial boundaries where the use of the vehicle is permissible.
- Incidents occurred during drunken driving.
- Damages happened due to War
While for depreciation, you can buy add-on cover under your insurance product and raise the security for your vehicle.