Which Motor Insurance Buy

Types of Motor Insurance

Widely, there are two types of insurance policies that provide motor insurance cover:
  1. Liability Policy Only (Legal Requirement)
  2. Package policy (Liability Policy only – Owner’s vehicle damage – OD cover)

Remember that if you take only one liability policy, then the damage to your vehicle will not be covered. Therefore, it would be wise to take a package policy, which would provide a more comprehensive cover including cover for your vehicle.

What is covered in motor insurance:

Damages to the vehicle due to the following calamities, are often covered under the On-Damage Section of Motor Insurance Policy:

  1. Fire, explosion, fire, lightning
  2. Burglary / dacoity / theft
  3. Riot and strike
  4. Earthquake
  5. Floods, storms, cyclones, tornadoes, thunderstorm, water flowing, hail, snowfall
  6. Accident in external factors
  7. Malicious act
  8. Terrorist act
  9. During travel by rail / road, inland waterways, lift, elevator or air
  10. Landslide / rock climbing

What is excluded in motor insurance:
Under the motor insurance policy, the following contingencies are usually excluded:

  • Not having a valid driving license
  • Being in the influence of alcoholic beverages / drugs
  • Accident occurring outside geographic boundaries
  • When the vehicle is used for illegal purposes
  • Electrical / Mechanical Breakdown

Based on Sum Assured

For self-harm (On Damage):
Under the motor insurance policy, the sum insured reflects the value of motor vehicle, which is determined on the basis of the concept called the declared value of the insured. The declared value of the insured is the price, which is determined on the basis of the present value of the manufacturer and depreciation based on the age of the vehicle.

For third parties:

Coverage is as per the requirements of the Motor Vehicles Act, 1988. Compulsory personal accident cover is also included for the owner-driver.Apart from the various cover available under the policy, the policy can also be expanded to cover personal accidents of passengers of the vehicle, driver compensation to the worker, etc.