Motor insurance is compulsory for any vehicle that is plying on the roads in India. Every owner/driver should have a valid motor vehicle insurance policy. The primary purpose of an insurance policy is to provide a financial safety net in case of accidental damage, death, or injury caused to a third party. Apart from third-party liability, the own-damage cover protects the physical harm or losses sustained by the insured vehicle in case of a natural or artificial calamity. This policy ensures a stress-free and secure drive on the roads in the country.
Importance of Motor Insurance
Well, it is mandatory! Yes, at least a third-party liability policy is compulsory for anyone wanting to drive on the roads in India. And if one wants protection against damages to the insured vehicle, then a comprehensive plan is something they can consider.
With the increasing traffic, the chances of accidents have also increased, which has made it essential for everyone to buy the right insurance policy that protects them from financial losses. The advantages of purchasing a vehicle insurance policy include:
Mandatory By Law:
Third-party insurance is mandatory to drive/ride a vehicle legally in India. If you do not have valid insurance, you might face punishment under the Motor Vehicles Act, 1988.
If someone has a motor insurance plan, they will have peace of mind while driving their vehicle on the roads in the country.
Decreases Your Liabilities
According to the Motor Vehicles Act, third-party liability insurance coverage is mandatory in India. This policy gives you coverage from legal matters if the insured causes harm to a third party while driving.
Loss or Damage of Own Vehicle
An own damage cover protects the insured vehicle from damages that may arise due to natural or manmade calamities.
Compensates Your Family
The demise of a vehicle owner is the most unfortunate outcome of a road accident. Once the bread-earning member of a family passes away, it becomes difficult for their family to manage their daily life needs. In such a situation, the insurance company will compensate the family after the unfortunate event.
Types of Motor Insurance Policy:
The policy can be broadly divided into the following categories:
Private Car Insurance:
Car insurance is the cover that protects against any damages caused to the insured vehicle in case of a natural or manmade calamity. The insurance policy also protects against any damages, injuries, or death caused to a third party during an accident. One should always compare different insurance policies to find the insurance policy that suits their needs.
Two-wheeler insurance protects a person against any damages caused to bikes and scooters in case of damage or theft of the insured vehicle. The insurance policy also protects against damages, injuries, or death caused to a third party in case of an accident. Like private car insurance, it is advisable to compare multiple insurance policies before choosing one.
Commercial Vehicle Insurance:
Commercial motor insurance protects the drivers/owners against any damages caused to a commercial vehicle. These vehicles are not used for personal purposes and only come for commercial purposes like trucks, good carrying vehicles, etc. A commercial insurance policy protects a person's business from any financial losses caused by or caused to the insured vehicle. Also, if someone has a business involving vehicles like a cab service, then the customers and stakeholders will be assured that they are covered and protected. Moreover, according to the Motor Vehicles Act, 1988, commercial vehicles must have liability-only coverage to ply on the roads in the country.
Types of Coverage offered by Motor Insurance:
There are two types of coverage that you can opt for while you buy motor vehicle insurance
Third-Party Insurance Plan:
A third-party motor insurance plan protects a person against any financial losses arising from damage, injury, or death caused to a third party in an accident involving the insured vehicle. The third-party includes a vehicle as well as a person. This insurance plan is mandatory if someone wants to drive a car on the roads in India.
Comprehensive Insurance Plan:
A comprehensive plan covers the damages caused to the insured vehicle along with third-party liability. The plan protects the insured vehicle in case of damages caused due to manmade disasters, natural disasters, theft, accident, calamities, and other similar occurrences.
How To Choose the right Motor Insurance Policy?
Given the plenty of options available today, choosing a policy that fulfills all the requirements is essential. An ideal policy should be reasonable and should provide protection in case of any adverse situation.
Here are all the things that need consideration before purchasing an insurance policy:
Know The Plan:
Before buying a policy, it is essential to know the type of plan that you are purchasing. Although a third-party insurance plan is mandatory, it will not protect any financial losses caused to the insured vehicle. It is essential to read all the terms and conditions carefully before purchasing a policy.
While buying a policy, consider services like 24x7 customer service, pick up and drop facility, comprehensive network of garages, and quick claim settlement. When the time comes, these are the services that can make all the difference.
Add-on covers to increase the scope of the coverage and make the policy more comprehensive. It is essential to buy suitable add-on covers to get the maximum benefits from the policy.
Speed of Claim Settlement:
While buying a policy, check the claim settlement ratio of different companies. It is one of the most important aspects of buying an insurance plan.
The policy must cover everything conveniently at best possible value, from the correct premium to the services. This will save money without compromising on the services that one will receive.
What are the inclusions in Motor Vehicle insurance?
Damages due to burglary, riots, theft, explosion, strikes, terrorism, etc., are covered.
Damages caused due to fire, cyclones, earthquakes, floods, typhoons, storms, hurricanes, lightning, etc., are covered.
Any damage caused when the vehicle is in transit by rail, road, air, or waterway is covered.
Damages, injuries, or death caused to a third party are covered.
Death of owner-driver
Coverage for an owner-driver in case of demise is provided.
Car insurance Comparison Checklist
- Go online and log on to RenewBuy website (www.renewbuy.com).
- Select your city and details about the car like its year of manufacturing, car make, model, and variant.
- Check the IDV and deductibles
- Check claim settlement history of the provider
- Select any add-ons you want to opt for
- Select one of the providers that offer value for money pricing based on your preferences
That’s it! The process to compare private car insurance plans online is now complete.Companies provide this at an extra premium.
What are the exclusions in Motor vehicle insurance?
Wear and tear
The wear and tear of the vehicle due to its usage is not covered.
Loss or damage due to depreciation of the vehicle is not covered.
Electrical or Mechanical breakdown is not covered.
The wear and tear of consumables like tyres and tubes is not covered.
Loss or damage incurred to the vehicle outside the geographical area is not covered.
Loss or damage caused by driving under the influence of intoxication (alcohol or drugs) is not covered.
Non-Valid Driving License
Loss or damage caused by an unauthorized person driving without a valid driving license is not covered.
War and nuclear Risks
Loss or damage due to nuclear risks, radiation, rebellion, and war is not covered.
Damages caused due to over speeding are not covered.
Policy Not in Force
One should renew the policy on time. If the damage happens post expiry, it will not be covered.
* The above may vary from insurer to insurer.
Benefits of Buying Motor Insurance Policy with D2C Insurance Broking Private Limited (“RenewBuy”)
Now, you can buy a new insurance policy within minutes. Apart from purchasing a policy, you can also file a claim online. Here are the top benefits that you get if you buy auto insurance online with RenewBuy:
The entire process is completed online, which means that there is no paperwork involved. This makes the process hassle-free.
It is easy to buy a policy online, and it helps save time as one can get a policy from the comfort of your home. The policy is issued within minutes, which makes the process stress-free.
If someone wants to compare different policies, they can do so on the RenewBuy website easily. This will help them buy the right policy according to their requirements.
There is no need to visit the branch office or anywhere else. One can get the policy issued online, which makes the whole process cheaper.
Once someone purchases a policy, they will get the soft copy of the policy on the registered email within some time.
Thus, valid third-party insurance is a must-have if you want to drive legally in India. But buying a comprehensive insurance policy not only safeguards against third-party liability but also provides financial safety in case there is damage caused to one's vehicle. Therefore, it is advisable to buy a policy after careful consideration to get the maximum coverage. Before you purchase a policy, read the terms and conditions carefully to avoid ambiguity later.