Understanding The Different Types Of Motor Insurance Policies
In many countries, a vehicle is more than just a way to get around. Cars and bikes often become sentimental. Owners worry about minor damages, like scratches or dents. It is surprising how much a vehicle can affect someone. This bond makes owners want to protect their vehicles. Vehicle repairs can be pricey, mainly due to costly parts. So, having motor insurance is crucial. It shields you from financial losses after an accident.
Auto Insurance: What Is It?
Motor insurance stands out as a “priority” coverage, protecting a wide range of vehicles, from cars to motorbikes. Its unique status stems from its vital role in safeguarding both drivers and other road users. The government recognises this importance, mandating coverage for all motorists. When you consider the modest annual premium against the invaluable protection it offers in case of accidents, the significance of motor insurance becomes crystal clear.
Types Of Motor Insurance
- Private Auto Insurance Policy: The laws of India make it mandatory that all owners of private automobiles have private auto insurance. The car is protected from theft, fire, natural calamities, accidents, and other related cases. It safeguards third parties from losses and injury caused by the insured car. It also covers injuries to the owner of the car.
- Two-Wheeler Insurance Policy: The Government of India has mandated this policy for motorcycles and scooters only. It shields against theft, fire outbreaks, natural calamities, accidents, and any other related mishap. Besides, it has optional personal accident insurance for the driver and passengers of the vehicle. As for the former, it includes third-party injury claims.
- Commercial Vehicle Insurance: This insurance is for vehicles used in business, not personal use. It covers a wide range of vehicles, including autorickshaws, trucks, buses, and taxis.
Various Coverage Options Under Auto Insurance
Comprehensive Insurance: Covers theft, accidents, and natural disasters. Also protects you and passengers. Includes coverage for theft and riot damage. Add-ons are available.
Third-Party Insurance: Mandatory by law. It covers damages or injuries you cause and pays for repairs or medical bills for others.
Own Damage Insurance: Covers only your vehicle, but excludes third-party liability. Protects against riots, fires, theft, accidents, and disasters.
Personal Accident Insurance: Covers injuries or death for the owner or driver in accidents. The IRDAI mandates up to Rs. 15 lakh coverage. Also covers medical costs and offers benefits for disability or death.
The ABCD app has customised plans for bikes and cars. You can easily renew or buy coverage online. Enjoy instant policies and simple payments with just a few taps.
Add-On Covers For Motor Insurance
Policyholders can add covers to their motor insurance based on needs. Popular options include:
- No Claim Bonus (NCB) Protection: Protects the right of the NCB discount in case of a claim.
- Roadside Assistance: Provides assistance when the vehicle has a breakdown or in case of an emergency at any time.
- Engine Protection Cover: Includes damage to the engine due to water, fire or any natural calamities.
In summary, knowing the various types of auto insurance is key to picking the right coverage. Options include third-party liability, comprehensive plans, and add-ons. Each offers unique benefits. Being informed helps you protect your vehicle and ensures peace of mind while driving.
