Insuring your vehicle is mandated by law in India. Be it a personal vehicle or commercial, you will be penalized if your vehicle hits the roads without a proper insurance cover. Motor insurance is a policy that ensures financial protection of the owner against damages or theft of the vehicle. Not only it protects the vehicle owner, it also covers the damages caused to another party under third party liability cover.
There are usually two types of motor insurance policies which are third party and comprehensive policy. Let us have a detailed look at various aspects of these policies.
There are usually two types of motor insurance policies which are third party and comprehensive policy. Let us have a detailed look at various aspects of these policies.
What it covers?
An efficient Vehicle insurance policy will cover damages to the vehicle caused due to various reasons. The reasons may be accidents, riots, strikers, natural calamities like earthquakes, floods, etc. Further, it will cover loss or theft of the vehicle and any financial liability to the third party. Additionally, some of the policies also provide personal accident cover for the owner, which means if you suffer from any injury, medical expenses up to the specified limit will be compensated by the insurance provider.
What does it not cover?
Damage caused to your vehicle through general ageing is something that will not be covered by your insurance provider. Also, if your vehicle suffers breakdown or damage due to rash driving or because of driving under the influence alcohol, an insurance company will not entertain you in such cases. In addition to this, keep in mind that if your vehicle suffers loss outside India, then also insurance provider is not liable to settle the claims.
Factors that affect premium:
The major factor that affects premium is IDV that is insured declared value. It is the cover amount of the vehicle. Apart from IDV, occupation and age of the vehicle owner plays an important role in deciding the premium.
How to get the best deal?
You will be eligible to get best deals with low premiums if your vehicle is new and equipped with technologically advanced security features. Old vehicle owners will comparatively be charged with higher premiums. Which is why it is recommended to buy a motor insurance policy as soon as you purchase the vehicle.
You will be eligible to get best deals with low premiums if your vehicle is new and equipped with technologically advanced security features. Old vehicle owners will comparatively be charged with higher premiums. Which is why it is recommended to buy a motor insurance policy as soon as you purchase the vehicle.