Motor insurance is for your car or bike what health insurance is for your health.It is a general insurance cover that offers financial protection to your vehicles from loss due to accidents, damage, theft, fire or natural calamities.You can also get motor insurance for your commercial vehicles.In India, you cannot drive or ride without motor insurance.
Whether you own a two-wheeler or a car, it is a prized possession. You spend Lakhs together to buy a motor vehicle. Any damage to a motor car in an accident, costs thousands in repairs. Worse, if the motor car is fully destroyed in an accident, replacing it will be a costly affair. Buying a new motor car in case it’s stolen, costs a fortune. It is important to buy a motor insurance plan to cover the vehicle against accidents, theft, fire, natural calamities and so on.
Whether the vehicle is for personal or commercial use, it is now compulsory to buy third party liability cover called motor insurance, under the Motor Vehicle Act. If you don’t have a valid cover, you will be penalized.
Motor Insurance is also called as car insurance, vehicle insurance or auto insurance. As the name suggests, a motor insurance is an insurance for cars, trucks, motorcycles, etc. Motor insurance provides financial protection against physical damage or injury to one’s body as a result of accidents, collisions and also against liabilities arising from such incidents. IT may also offer financial protection against weather or natural disasters, collision with animals, etc.
There are two types of motor insurance plans namely, third party liability cover and a comprehensive motor insurance plan.
Motor Insurance in India is of two types:
It’s precious—your car. You paid lakhs of rupees to buy that beauty. Even a single scratch can be painful, forget about bigger damages.
Car insurance can reduce this pain for a few thousand rupees.
This is your bike’s guardian angel. It’s similar to Car insurance.
You cannot ride a bike or scooter in India without insurance.