Everything you need to know about Motor Insurance in India

If you own a vehicle, be it a car, bike, or any other motorised mode of transport, understanding the ins and outs of motor insurance is essential. In this blog, we'll cover all the critical aspects, from the types of motor insurance plans, inclusions & exclusions and how to buy a motor insurance plan in India. Let's dive in!

What is Motor Insurance?

Motor insurance, also known as vehicle insurance or auto insurance, is a type of insurance policy that provides financial protection to vehicle owners against potential losses or damages caused to their vehicles. It is designed to cover the insured vehicle and third parties involved in accidents. In India, having motor insurance is mandatory by law for all vehicles operating on public roads. The insurance policy helps mitigate the financial burden arising from accidents, theft, natural disasters, fire, and other unforeseen events that may cause damage to the insured vehicle or result in third-party liabilities.

Types of Motor Insurance Plans

In India, there are primarily two types of motor insurance policies available:

• Third-Party Liability Insurance:

This is the basic and mandatory form of motor insurance required by law. It covers the policyholder's legal liabilities for bodily injuries, death, or property damage caused to third parties (other individuals or vehicles) due to an accident involving the insured vehicle. However, it does not cover any damages to the insured vehicle itself.

• Comprehensive Insurance:

Comprehensive insurance provides more extensive coverage compared to third-party liability insurance. It covers third-party liabilities and damages to the insured vehicle caused by accidents, theft, fire, natural disasters, vandalism, and more. It also offers personal accident cover for the policyholder (owner-driver) in case of injury or death while using the insured vehicle.

Inclusions And Exclusions Of Motor Insurance

Let's take a closer look at the typical coverage and limitations of a Motor Insurance plan:

Inclusions of Motor Insurance:

• Accidental Damage: Coverage for damages to your vehicle due to accidents, collisions, or overturning.
• Theft: Compensation in case your vehicle is stolen or parts are stolen from it.
• Fire Damage: Protection against damages caused by fire, explosions, or self-ignition.
• Natural Calamities: Coverage for damages caused by natural disasters like floods, earthquakes, storms, hurricanes, etc.
• Man-made Calamities: Protection against damages caused by riots, strikes, malicious acts, terrorist activities, etc.
• Third-Party Liability: Coverage for bodily injury, death, or property damage to third parties involved in an accident with your insured vehicle.
• Personal Accident Cover: Compensation for the policyholder (owner-driver) in the event of accidental death or disability while using the insured vehicle.

Exclusions of Motor Insurance:

• General Wear and Tear: Damages resulting from normal wear and tear of the vehicle are not covered.
• Mechanical or Electrical Breakdown: Repairs or replacements required due to mechanical or electrical breakdown are excluded.
• Driving without a Valid License: Any damages or accidents that occur when the driver does not possess a valid driving license.
• Intoxication: Damages caused while driving under the influence of alcohol or drugs.
• Use in Unauthorised Areas: If the vehicle is being used in areas not permitted by the policy, any damages or accidents occurring in such places will not be covered.
• Use of vehicle beyond the geographic scope: If your vehicle sustains damage or loss outside the specified geographical region, filing a claim may result in a lower chance of the claim being approved and processed.

How to Buy Motor Insurance Policy In India?

Buying a motor insurance policy in India can be a straightforward process if you follow these steps:

• Assess Your Requirements: Determine the type of motor insurance you need - third-party liability or comprehensive coverage, based on your vehicle's age, value, and budget.

• Research and Compare: Research various insurance providers and their policies. Compare features, coverage, premiums, and customer reviews to find the most suitable option.

• Visit Insurance Company Websites: Visit the websites of shortlisted insurance companies and use their online calculators to get premium quotes based on your vehicle's details.

• Add-Ons: Consider optional add-ons for extra coverage, such as zero depreciation, roadside assistance, engine protection, etc.

• Check IDV: Verify the Insured Declared Value (IDV) of your vehicle, as it determines the maximum coverage amount in case of a total loss.

• Make Payment: Select the desired policy, and make the payment using the preferred payment method, such as credit/debit card, net banking, or digital wallet.

Conclusion

Understanding motor insurance in India is vital for every vehicle owner. Whether you opt for offline or online purchases, read the policy terms carefully and stay updated on renewals. By doing so, you can drive confidently, knowing your prized possession is safeguarded against unforeseen events on the Indian roads. Happy and safe driving!

FAQs

1. Are there any requirements for buying a motor insurance policy?

As long as you are the legal owner of a vehicle, you can purchase a motor insurance policy for it.

2. Is it mandatory to insure my car if I only use it on Sundays and drive safely on the highway?

Yes, it is compulsory to insure your vehicle if you drive it on public roads. Failure to do so can lead to penalties and legal consequences.

3. How long does it take to buy an online vehicle insurance policy?

Buying an online motor insurance policy can be completed in three to five minutes, provided you have all the necessary details ready and a functional internet connection on your smartphone or laptop.

4. What is the process for filing a claim against my motor insurance policy?

To file a claim against your motor insurance policy, you need to inform your insurer about the incident for which you want to make a claim. You can do this by visiting the insurer's website, calling them, or sending an email.

5. Can I switch to a different insurer and insurance plan during policy renewal?

Yes, you can switch to a different insurer and choose another insurance plan when renewing your policy. However, it is advisable to research the new insurance company and plan before making a decision for a seamless transition process.