Various Type Of Motor Insurance Policies In India

By Author: Pranav V Sharma
Total Articles: 141
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Motor insurance, also known as vehicle insurance, is insurance purchased for road vehicles such as cars, trucks and motorcycles. Motor insurance protects against financial losses arising due to accident, theft or damage to vehicles. With a rise in usage of four wheeler and two wheeler vehicles, motor insurance is also known as auto insurance. It is one of the most common types of general insurance products. Motor insurance is mandatory by law and it protects you and others using the vehicle from any legal claim or penalty made by a third party. Family members who may be using the vehicle are also covered under your motor insurance policy. The word ‘Motor’ broadly covers a lot of classes of vehicles plying on the roads. These may be two wheelers such as scooters and motorbikes, three-wheelers or four wheelers such as private cars, jeeps, buses, trucks, commercial taxis and other vehicles. Motor insurance is of three types – Car, Two Wheeler and Commercial Vehicle.

Car insurance is the fastest growing segment in the insurance sector as it is mandatory while buying a new car. Major car manufacturers tie up with leading ...
... motor insurance companies to provide quick insurance to its customers. Motor insurance covers loss or damage by accident, fire, lightning, riots, earth quake, hurricane, terrorist attacks, explosion, theft, third party’s claims and damages like liability for third party injury. Loss or damage to electrical or electronic accessories and other significant items are covered under the motor insurance policy upon payment of appropriate additional premium.

Two wheeler insurance is another type of popular motor insurance in India. This type of motor insurance provides protection against natural calamities like fire, rockslide, landslide, storm, hurricane, flood and earthquake. It also protects from burglary, theft, riots or any damage caused to the vehicle in transit by road, air, inland waterway or rail. Two wheeler motor insurance provides mandatory personal accident cover to the insurer. This accident cover can also be opted for passengers. It protects against legal liabilities arising due to third party’s injury or death or damage caused to property.

Commercial vehicle motor insurance covers all those vehicles which are not used for personal purpose. Trucks, buses, heavy commercial vehicles, light commercial vehicles, multi utility vehicles, agricultural vehicles, ambulance and others are covered under this type of motor insurance. The premium is calculated on the basis of the make and model of the commercial vehicle, place of registration, year of manufacture, current showroom price and whether the insurer is individual or corporate. Motor insurance companies in collaboration with the automobile manufacturing companies chalk out different kinds of easy and less complicated policy plans.
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Pranav Sharma is an insurance agent based in Mumbai; Pranav assists individuals and corporates in purchasing the right Motor Insurance & often shares his insights about the general insurance industry on internet.