What is the Motor Insurance Coverage
What is motor insurance? It is nothing but a cover for your vehicle against various factors such as theft, damage, etc. You buy the policy and pay a premium. In return, the insurance company offers to cover your vehicle against various damages. Take a look at this article to know more about exactly what is vehicle insurance, its features and its benefits.
Motor Insurance Meaning
Motor insurance is one of the most popular types of general insurance all across the world. A motor insurance policy protects vehicles, both two-wheelers and four-wheelers against a huge number of damages. This apart, it also offers protection for third party liabilities and for injuries sustained to people when the vehicles are involved in accidents.
Features of Motor Insurance
1. Mechanism and working
The working of a motor insurance plan is quite basic, yet very interesting. First and foremost, you need to compare and buy a good motor insurance plan, based on what your needs are. You can choose between the third party plans or the comprehensive covers. Then, you can choose riders that are add-on covers. Once you have sufficient insurance cover, you need to pay the premium and keep the policy active. If the vehicle gets involved in an accident, you can make a claim. The insurance provider will then pay out the compensation amount and you will stay protected.
2. Covers
A vehicle insurance plan extends the coverage not just to the insured vehicle, but also to third parties and people. If the driver and passengers of the vehicle and/or the driver and passengers of the other vehicle are injured in the accident, the policy will pay for the medical expenses. The cost incurred in repairing the vehicles and property damaged in the accident will also be covered. These are the beneficial ways in which a motor insurance plan offers a wholesome and well-rounded cover.
3. Compulsory
As per the rules in India, it is compulsory for you to have a motor insurance plan if you buy a vehicle in the country. Whether you buy a bike, a scooter or a car, you have to immediately buy a suitable motor insurance policy as well. The rule applies to new as well as second-hand vehicles.
These beneficial features go on to highlight the importance of motor insurance and tell us why every vehicle owner needs to buy a plan.
Types of Motor Insurance
1. Third party insurance
Third party motor insurance is a basic form of insurance that is available in India. It is a legal requirement to have this cover. Here, all the third party liability costs are covered. These include damages to the third party vehicle and property. It also includes bodily damages to the third party. This apart, you also get a legal cover in case there is a case in a court following the accident. Under a third party plan, there is no coverage available for damages sustained to the vehicle owner. A third party plan is quite economical.
2. Comprehensive
A comprehensive car insurance plan offers all the covers that a third party policy does. In addition, it also offers coverage against own damage. Additionally, you can buy extra riders with a comprehensive motor insurance plan and increase the scope of the cover, as per your needs. A comprehensive plan is costlier but the scope of cover is much higher.
These categories are available in bike insurance plans as well as in car insurance plans. You need to choose the correct type of cover, based on what your exact requirements are.
There are 4 Benefits of Motor Insurance
- Financial Protection
- Legal Protection
- Ease and Convenience
- Very Affordable
1. Financial Protection
When your car gets involved in an accident, there are many expenses that crop up. From having to repair the dents and scratches to paying for third party damages, your bank account shrinks! This is where a motor insurance plan comes in handy. You get coverage against all such financial losses. The plan compensates for all damages and keeps your money protected.
2. Legal Protection
As mentioned above, it is a legal requirement to have a motor insurance plan in India. When you are caught driving without a valid policy, you will be fined and can also be jailed. To save yourself from all such troubles, you need to have a vehicle insurance plan in place and stay legally covered.
3. Ease and Convenience
It is very simple to get a car or a bike insurance policy in India. You can buy the plans online in a quick, easy and convenient manner. It hardly takes a few minutes to compare and buy a plan. The documentation is very simple too. The same holds true for vehicle insurance renewals. This is another big benefit of the modern-day motor insurance plans available in the country.
4. Very Affordable
The third party, as well as the comprehensive, motor insurance plans available in India, are economically priced. There are some excellent motor insurance companies in India that offer excellent covers at great prices. You can compare the different policies online and then find the best plan at the best rate. This holds true for all types of motor insurance plans.
These are the handiest advantages you get when you invest in a good motor insurance policy for your bike or your car.
The final word
As you can clearly see from the points mentioned above, motor insurance coverage is not just important, it is highly beneficial too. So if you have recently bought a car or a bike, you should insure it at the earliest. Go online, compare the plans and locate the best plan at the best rate. Doing so will help you to keep yourself, your vehicle and the other people around safe. Thankfully, there are many options to choose from. List your requirements and then find a suitable cover.
