In India, it is mandatory for a vehicle owner to have a motor insurance policy covering Third Party Liability as per the Motor Insurance Act of 1988. It saves the vehicle ownerfrom legal troubles such as suspension of vehicle registration, impounding of Driving License, fine or imprisonment.
It is crucial to invest in a comprehensive insurance policy that not only insures you against third party liabilities, but also covers damage from accidents and natural disasters, making your journeys worry-free.
By familiarizing yourself with the available motor insurance options and taking proactive steps, you can achieve peace of mind while safeguarding your vehicle from these risks.
Here are the types of Motor Insurance Policies available in the market:
- Private Car Insurance Policy: Tailored for privately owned cars, this insurance provides coverage for accidents, fires, natural disasters, theft, and more. It also offers protection for injuries sustained by the car owner and covers damages and injuries caused to third parties.
- Two-Wheeler Insurance Policy: This policy extends its coverage to two-wheelers, offering protection against accidents, fires, natural disasters, theft, and third-party damages. It includes a mandatory personal accident cover for the owner-rider and can be extended to cover passengers.
- Commercial Vehicle Insurance: Encompassing a wide range of vehicles used for non-personal purposes, such as goods carriers, passenger vehicles, and specialized vehicles, this policy shields against losses and damages incurred by the insured vehicle, its owner-driver, or both. While third-party liability insurance is legally mandated to cover death, bodily injuries, or third-party property damage, comprehensive insurance goes further, providing protection against losses due to fire, burglary, theft, natural calamities, and manmade disasters like riots and terrorism.
Enhancing Your Motor Insurance Coverage
Consider additional insurance add-ons or riders to bolster your insurance coverage, especially during seasons of increased risk. Some of the most sought-after add-ons include engine protection cover, zero depreciation cover, and roadside assistance. Engine protection cover offers financial coverage in cases of engine damage due to waterlogging or hydrostatic lock, ensuring you receive the full claim amount without depreciation. Roadside assistance can be invaluable if your vehicle breaks down during adverse conditions.
S. Vishwanathan, Head – Underwriting, SBI General Insurance, said, ” Owning a vehicle is a substantial emotional and financial investment, and safeguarding it with the right insurance policy is equally crucial. A motor insurance plan not only safeguards your investment but also acts as a financial safety net in the face of unforeseen circumstances involving your vehicle. It is recommended to choose a comprehensive policy or add other relevant features to your existing policy, to ensure your vehicle’s protection in any unexpected event.With having a motor insurance, you’re not just insured; you’re empowered to face life’s uncertainties with confidence..”
Remember that protecting your vehicle isn’t solely the responsibility of insurance. Regular vehicle maintenance is essential, to avoid sudden financial stress. Prior to purchasing any insurance policy, it is advised to conduct thorough research to find the most suitable insurance policy.