Types of Motor Insurance

People try to buy the best car, but they are careless in getting the car insured. However, auto insurance not only covers you financially, but also saves you from various types of legal troubles. In this article, we will know why auto insurance is necessary and what are its benefits. First of all, we will know that how many types of vehicle insurance are vehicle insurance?

Car insurance works on ‘use it or forget it’ policy. To avail this benefit, you have to pay an annual installment. If you are more fortunate and survive a serious accident claim, you lose the premium amount paid for the protection. On the other hand, you get a non-claimed bonus, which is a pretty real amount- starting at 20% of the installment in the first year and going up to 50% by the sixth year- that’s why sometimes there is no pressure for small damages is advised to do.

The value of your insurance policy depends on the IDV – the declared sum insured of your vehicle, which is the maximum sum insured that the insurance company will pay you; It is roughly equal to the market price of your vehicle. Therefore, when you buy insurance for a new vehicle, the IDV is calculated based on the listed price of the showroom. However, your car’s IDV is not constant.

The value of your insurance policy depends on the IDV – the declared sum insured of your vehicle, which is the maximum sum insured that the insurance company will pay you; It is roughly equal to the market price of your vehicle. Therefore, when you buy insurance for a new vehicle, the IDV is calculated based on the listed price of the showroom. However, your car’s IDV is not constant.

Type of Motor insurance
Generally people know about motor insurance, but not everyone is aware of what it is. There are many types of coverage in motor insurance which come for two wheelers, cars, trucks and other vehicles. Actually, it is mandatory for every person who buys his vehicle in India to buy a vehicle insurance i.e. motor insurance policy. That is why it is better to know about car insurance first. If some important information is gathered before taking vehicle insurance, then many problems can be avoided later.

1. Third Party insurance :
The damage caused by your vehicle to any other vehicle, person or property is compensated through third-party insurance policy. In the aftermath of such incidents, it is also the responsibility of the insurance company to deal with the legal procedures that will take place for the determination of compensation. Along with third party insurance, you also get Compulsory Personal Accident Insurance of 15 lakhs. It provides compensation of up to Rs 15 lakh in the event of death or permanent disability of the vehicle owner. But keep in mind, your own damage to the vehicle is not compensated by a third party insurance policy. For this, you have to take Own Damage Cover, which is available only after taking a comprehensive motor insurance policy.

2. Comprehensive Motor Insurance Policy :
It is also called a complete insurance policy. In this, the insurance company not only pays the compensation for the damage caused by your vehicle to any other vehicle, person and property, the insurance company also compensates for the damage caused to your own vehicle. That is, you get the benefit of both third party insurance and own damage cover from a comprehensive motor insurance policy. Comprehensive insurance also gives you the facility to add a variety of Add On Covers.

• Car Insurance – By taking car insurance, in the event of an accident, there is a facility to compensate for the damage caused to the vehicle. In the event of natural calamities or man-made calamities, compensation for the damage caused to the vehicle is also covered under this insurance. Many companies have now started providing medical insurance as a part of the same, along with car insurance. Car insurance is also responsible for settling legal liability on damage caused to another person or property in the event of an accident caused by your vehicle. The driver of the vehicle is also entitled to get the benefit of this third party liability. Not only this, there is an option to take coverage for the passengers/co-passengers as well. However, the more the coverage increases, the higher the premium of the policy.

• Two Wheeler Insurance – Under two wheeler insurance also, the facility of compensation for damage caused to own vehicle along with third party liability is provided. Apart from road accidents, this type of insurance also provides protection against natural and man made calamity. Generally this insurance is for one year. Long-term two wheeler insurance facility has also been started by the Insurance Regulatory and Development Authority of India. Can get vehicle insurance for two wheeler.

• Commercial Vehicle Insurance
All vehicles that are used for commercial purposes, such as buses, trucks, ambulances, loaders, canters, multi-utility vehicles, agricultural vehicles, etc. They are insured under commercial vehicle insurance. Commercial vehicle insurance also provides protection against damage caused in the event of an accident or disaster. In the event of a road accident, apart from indemnification for damage to any other person or property, the facility of claims for death or bodily damage is also a part of this type of insurance policy.

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