Motor Insurance

Motor insurance is a mandatory insurance cover that every vehicle owner in India must have. Be it a car, truck, tractor or two-wheeler, every vehicle should be secured under an insurance policy of its own. Its main objective is to give complete protection against physical damage or loss sustained by the insured vehicle from natural and man-made calamities along with any third-party liabilities arising out of the insured vehicle.

What is Motor Insurance?

Motor insurance is an insurance policy designed for four-wheelers, commercial trucks, two-wheelers, and other road vehicles. It has been made mandatory for all vehicles such as cars, bikes, scooters, and trucks that are plying on the roads in India. Vehicle owners are required to avail motor insurance even for commercial vehicles as well. Nowadays, you can get vehicle insurance online and pay the policy premium as well.

Features of Motor Insurance

A vehicle insurance policy comes with several features that can be very beneficial for the policyholder. Here are some features that you should know:

  • You can purchase motor insurance online after comparing quotes from best motor insurance companies from NJ Insurance in a hassle-free manner.
  • You can also renew the motor insurance plan online from the comfort of your home.
  • You can add or remove any particular add-on as your requirement. You can do it while purchasing or renewing the insurance plan. Add-ons are optional covers that you can purchase to enhance the coverage of your motor insurance policy.
  • Motor insurance not only provides cover for the damages caused by an accident but also covers from theft, natural calamity, fire damage, vandalism, manmade disasters, etc.
  • You can get the benefits of a cashless claim assistance by providing enough evidence in case of accidents and theft.
  • Motor insurance also provides a No Claim Bonus feature. Under this feature, if you do not raise a claim during the policy tenure then the insurer will provide you with a specified discount on the renewal premium.
  • Insurance companies keep on coming up with different plans and add-ons to provide you better coverage as well as provide assistance in case you get stuck during the claiming process

Types of Motor Insurance Coverage in India

The main three types of motor insurance policies offered in India include:

  • Third-Party Insurance Cover
     

    It is a mandatory policy and covers a third person who has been injured in an accident involving you and your vehicle. It compensates against third-party death, injury and property damage. The policy doesn’t provide any direct benefit to the insured. As per the Insurance Regulatory and Development of India (IRDA), no insurer can decline to underwrite third-party insurance.

  • Standalone OD Cover
     

    Recently introduced by the IRDAI, a Standalone own damage cover protects the insured vehicle against any own damages arising out of unforeseen incidents like accident, theft, fire etc. This motor insurance policy can be purchased if you already have a third party cover and also want to cover own vehicle against financial losses.

  • Comprehensive Insurance Cover
     

    This cover is an add-on to the third-party insurance plan and protects the owner of cars, bikes, scooters and trucks from financial losses caused by damage or theft of the insured vehicle. Besides insuring vehicles, it also provides third-party coverage. Thus, comprehensive motor vehicle insurance provides wider coverage and also carries a higher premium.