We all have heard about insurance policies and the growth of insurance is not hidden from us. There are many kinds of insurance policies like life insurance, child insurance, crop insurance, etc., motor vehicle insurance is also one of them.
Vehicles give excitement and happiness in people’s life; they even get so much connected with their vehicles and consider them as a part of their family. Vehicles are very expensive also and come with a lot risk, this make the motor vehicle insurance a mandatory one in India unlike other insurance policies because the risk vehicle come with is not only on the owner but also on other people who come in contact with the vehicle anywhere around.
The motor vehicle insurance is an important document that every vehicle owner has to take at the time of purchasing the vehicle and has to renew it time to time. It provides protection and covers the damages incurred by the insured vehicle.
What exactly is a motor vehicle insurance?
Motor insurance, as used in the insurance industry, is a category of insurance intended for all types of vehicles, including two-wheelers, four-wheelers, and commercial trucks. An automobile insurance coverage protects you financially from physical harm or losses brought on by unforeseeable occurrences like car accidents or natural disasters.
For all vehicles operating on Indian roads, whether cars, scooters, or bikes, it is very much required by the law to purchase a specific sort of motor.
Features
Motor vehicle insurance’s features depend upon to the policy chosen by the insured. Here, we are mentioning some of the common features of the motor vehicle insurance:
- Buying of motor vehicle insurance is easy, whether it is online or offline.
- Wherever you are, it is very easy to renew the insurance policy online.
- As per the requirement, the insured can easily remove or include the add-ons or riders.
- It covers the damages caused by accident, fire, theft, etc.
- It provides cashless claim facility.
Types
The motor vehicle insurance is mainly classified into three categories, which are as follows:
- Car Insurance
The Government of India requires that this type of motor insurance be purchased for any private vehicles that an individual owns. It includes coverage for theft, natural catastrophes, accidents, fire, and other damages as well as any injuries to the owner. Injuries and damages to third parties are also covered.
- Bike or Two-Wheeler Insurance
The Indian government requires the purchase of this insurance coverage, which covers two-wheeled vehicles like scooters and bikes. The two-wheeler is protected from damage caused by mishaps, catastrophes, fire, theft, etc. as well as any damage or harm to third parties. It also provides a personal accident insurance option that is required for the owner rider and is available for passengers as well.
- Commercial Vehicle Insurance
All non-personally used automobiles are covered by this insurance. This insurance type covers any automobiles that are not driven for personal purposes. Some of the vehicles covered by this insurance include trucks, buses, heavy commercial vehicles, light commercial vehicles, multi-utility vehicles, agricultural vehicles, taxis/cabs, ambulances, auto rickshaws, etc.
Motor Insurance Coverage in India
Types
- Third Party Coverage
This coverage helps the third party or accident victim if you and your car are the culprits or causes of the collision. This kind of auto insurance coverage offers the insured (you) no financial advantages.
All types of automobiles must have third-party auto insurance, according to IRDA (Insurance Regulatory and Development Authority) regulations.
- Comprehensive Coverage
This kind of motor insurance guards the policyholder (you) from financial loss brought on by damage to or theft of the insured car. A comprehensive insurance plan typically covers third parties as well. It may also be viewed as a supplement to third-party coverage.
- Pay as you Drive
According to the most recent IRDA standards, it is a newly released motor insurance product. It enables the policyholder to pay the insurance premium in accordance with the number of kilometers they have travelled. Depending on how far the insured anticipates driving throughout the term of the policy, the premium is chosen at the time of purchase. It includes both comprehensive insurance coverage and third-party liability.
Damages that are Included
Following are the risks cover under motor vehicle insurance:
- Earthquakes
- Riots
- Landslides
- Storms
- Floods
- Terrorism
- Fire and Burglary
Damages that are Excluded
Following situations are not covered under any motor vehicle insurance:
- When driver drives after consuming the alcohol.
- When the person driving does not have a valid driving license.
- When the vehicle is used for any kind of illegal activity or for the purpose that is not mentioned in the policy.
- When the place of damage or loss is outside the territory of India.
Things to Keep in Mind While Buying a Motor Insurance
In India, purchasing third-party motor insurance is required by law. However, you become qualified for a variety of benefits when you select a comprehensive plan. The following considerations should be made while buying auto insurance online:
- Verify that the insurance coverage offered by the plan you choose is enough.
- For further advantages, add the available add-ons that the insurer is offering to the base insurance.
- Verify that the chosen policy offers personal accident protection.
- Look further to learn about the claim settlement ratios of various auto insurance companies.
- To get the best insurance protection, learn about the zero-depreciation add-on and include it in your policy.
- When purchasing auto insurance, carefully read the policy’s terms and conditions.
Benefits of Renewing Motor Insurance
The purchase of motor insurance is not a one-time event because the policies have an expiration date. It implies that when the policy’s term expires, you must renew it. You can also choose to keep your current policy and insurer, or switch to a different one, when your auto insurance is renewed.
- Some benefits of renewing your car insurance online are listed below:
- Online insurance policy comparison is simple at renewal time
- Saving money because there is no need to pay agent fees
- Simple to add additional passengers or services as needed
- No need to go to the office of the local insurer time reduction
- Online premium payments are simple.
IRDAI (Insurance Regulatory and Development Authority of India) Motor Vehicle Rules: Recent Update
IRDAI continuously updates the relevant regulations in an effort to improve and lower the cost of motor insurance policies for vehicle owners. Some of the IRDAI updates you should be aware of are listed below:
- According to an IRDAI regulation from 2018, only third-party insurance needs to be purchased for a minimum of three years for cars and five years for two-wheelers. (IRDAI 2018 regulation).
- Third-party motor insurance with comprehensive coverage must be purchased for three and five years.
- Vehicle insurance for third parties for three and five years with a year of comprehensive coverage (as of the IRDAI 2020 regulation update).
- For personal vehicles, the insurance amount is determined by the manufacturer, road tax, and on-road cost.
- The premium amount will also depend on the policyholder’s driving habits. The IRDAI has standardized No Claim Bonus within the range of 20-50%.
- Electric vehicle insurance premiums will be 15% less expensive to pay. Long-term insurance can also be transferred by the owners from one company to another.
How to Claim Motor Vehicle Insurance Benefits?
The process of filing the claim under motor vehicle insurance, varies person to person. The common points to file claim are as follows:
- Claim for damage to the vehicle of insured
In this situation, you must give the insurer a thorough estimate of the loss you have suffered. The surveyors will determine the cause of the loss, examine the damaged vehicle, and submit their survey report after the claim is submitted. You will receive the expected insurance benefits once the claim has been approved.
- Claim for third party
The case is given to an advocate who will take care of it after the third-party or insured sends notice. Along with a police report and other necessary documents, he will request all pertinent information regarding the accident.