Motor insurance is a unique insurance policy meant for vehicle owners to protect them from incurring any financial losses that may arise due to damage or theft of the vehicle. Whether you have a private car, a commercial vehicle, or a two-wheeler, you can purchase a motor insurance policy.
What is motor insurance in simple English?
motor insurance in British English
(ˈməʊtəʳ ɪnˈʃʊərəns) insurance for a motor vehicle such as a car, which provides protection against loss in the event of an accident, theft, etc.
What is motor insurance and its types?
Basic Motor Insurance coverage include: Loss or damage by accident, fire, lightning, self-ignition, external explosion, burglary, housebreaking or theft, malicious act. Liability for third party injury/death, third party property and liability to paid driver.
What are the 3 types of motor insurance?
Types of Motor Insurance
- 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. …
- Two-Wheeler Insurance Policy. …
- Commercial Vehicle Insurance.
What is covered under motor insurance?
What Motor Insurance covers: The damages to the vehicle due to the following perils are usually covered under OD section of the Motor Insurance policy: Fire, Explosion, Self- Ignition, Lightning. Burglary/Housebreaking / Theft.
What is motor insurance India?
Motor Insurance is a type of insurance policy which covers your vehicles from potential risks financially. Policyholder’s car or two wheeler is provided financial security against damages arising out of accidents and other threats. In India, motor insurance is mandatory.
Why do I need motor insurance?
Motor Insurance protects the owner of the vehicle against damages to the vehicle and also pays for any liabilities owed by the vehicle owner as per law. The owner of the vehicle is legally liable for any injury or damage to life or property caused by used of the insured vehicle.
What is motor insurance explain its features?
Motor insurance provides financial assistance in the event of any physical damage to your vehicle or bodily harm and covers against third-party liability. It covers a gamut of circumstances related to your vehicle.
How many types of motor insurance are there?
Amount of insurance coverage – Motor insurance plans can be divided into three types based on the amount of insurance protection offered: Third-party liability insurance – This is the most basic form of car insurance and hence, it is also the cheapest.
What are the 5 types of auto insurance?
5 Types of Car Insurance Coverage Explained
- Liability Insurance.
- Collision Coverage.
- Comprehensive Coverage.
- Personal Injury Protection.
- Uninsured /Underinsured Motorist Protection.
What is IDV insurance?
What is Insured Declared Value (IDV)? The term ‘IDV’ refers to the maximum claim your insurer will pay if your vehicle is damaged beyond repair or is stolen. Suppose the market value of your car is Rs. 8 lakh when you buy the policy.
Which car insurance type is best?
So, if you are looking for a basic plan with an affordable premium, a third-party liability plan would be an ideal choice. But, if you drive a luxury car, it is better to purchase a comprehensive cover, as it will help reduce financial liabilities in the event of an accident.
Who can insure motor insurance?
Customers have to avail motor insurance policies only from companies registered with the IRDA. Motor insurance widely encompasses private car insurance, two-wheeler insurance, commercial vehicle insurance and all other types of road transport vehicles.