What is Motor Insurance?

Motor insurance is just like any other insurance policy, but unlike other insurances, it is ‘Mandatory’! And, as the name suggests, it is an insurance that is related to all types of motor vehicles-motorcycles, cars, jeeps, commercial vehicles etc.

Motor insurance has been made mandatory by the government for your safety and the safety of others. And the yearly premium you pay is just a meagre sum when compared to the advantages it has to offer you in case of, god forbid, any mishap.

Here’s yet another misconception many people have, Motor Insurance covers only the motor vehicle. Wrong again!

So first, let’s start with the types of Motor Insurance policies, and by and large what they cover! Motor insurance can be classified on 2 things

  • The type of vehicle for which you are taking insurance
  • The amount of coverage that you want to cover your vehicle for

So, what are the different types of vehicle insurances in India based on the type of vehicle owned?

 

Private Car Insurance Policy
This is motor insurance that needs to be taken for any private car owned by an individual and is mandated by the Government of India. It covers the vehicle for damages against accidents, fire, natural disasters, theft among others and also covers for any injury to the owner. It also covers any damages and injuries caused to the third party.
 

Two-Wheeler Insurance Policy

This insurance policy covers two-wheelers like a scooter or a bike and is mandated by the Government of India. The two-wheeler is covered against damages from accidents, disasters, fire, theft, etc. as well as any damages and injuries to the third-party. It also offers a mandatory personal accident cover for the owner rider and can be taken for passengers too.

Commercial Vehicle Insurance
This insurance covers all vehicles that are not used for personal use. his type of insurance covers all those vehicles which are not used for personal purpose. Trucks, buses, heavy commercial vehicles, light commercial vehicles, multi-utility vehicles, agricultural vehicles, taxi/cab, ambulances, auto-rickshaw etc. are some vehicles that are covered under this insurance.