Overview of Motor Insurance

Having a Motor Insurance in India is mandatory as per the guidelines of IRDAI. Motor Insurance rules and regulations are guided by the Indian Motor Tariff. From the several Motor Insurance such as Car Insurance, Two-wheeler Insurance, Commercial and Passenger-carrying vehicle, the most popular Motor Insurance in India is Car Insurance.

As per the recent survey, the car owners are increasing by 20% every month. Car Insurance being mandatory for the car owners, it becomes very necessary for the owners to have a right policy. A Car Insurance covers two types of entities- Own Damage and Third Party.

The Own Damage and Third Party consists of the following covers:-

Own Damage Covers Third Party Covers
Complete loss of vehicle Liability to paid driver
Complete damage of vehicle Third party injury to someone’s life
Partial damage of vehicle Third party death of someone’s life
Damage caused by accident, fire, natural calamities Third party damage of a property
Damage caused by riots, terrorist attacks, personal fights etc. Personal Accident cover for owner driver
Theft of vehicle Personal Accident cover for passengers

The Car Insurance Policy also covers the following elements on paying an extra amount of premium

  • Electrical Accessories
  • Non-electrical Accessories
  • CNG Kit
  • Geographical Extension

For the benefits of Customer, certain important Add-ons are also provided as listed below on paying an extra amount the rates for which are decided by Insurance Companies

  • Zero Depreciation
  • Roadside Assistance
  • Engine Protector
  • Key Loss Cover
  • Consumables
  • Tyre Cover
  • NCB Protection

The Car Insurance can either be taken for Individual or Corporate’s name. Several major Insurance Companies have tied up with OEM (Car Manufacturers), brokers or online portals to sell their policies as a distribution channel for Car Insurance to make most out of the opportunities.

The Car Owners should remember that the following covers are excluded in a Motor Vehicle Insurance:-

  • If a car ages generally by itself and its wear and tear is affected.
  • The car is damaged completely or partially by the Driver under the influence of alcohol, drugs, supplements etc.
  • If the Driver wasn’t carrying the respective Driving License while accident takes place.
  • If the accident takes place out of geographical area defined as per the cover taken. In the base policy, only India is in scope.
  • If the car mechanically gets broken down.

Best of Luck on your purchase of Car Insurance Policy!