Everything You Want To Know About Motor Insurance

Instances such as road accidents, theft or damage to the vehicle while driving are unpredictable. Such incidences can make anyone stressful as it can be a financial blow. It would be easier to take control of such situations if you have motor insurance. Read further in detail about motor insurance in India.

Due to poor road conditions, road mishaps, driving discipline, and traffic violations, driving has become a risky affair. Therefore, motor insurance is now a mandate in India. You cannot drive without having third-party motor insurance.

There are two types of motor insurance:

  1. Third-party Insurance
  2. Comprehensive motor insurance

What is Third Party Insurance?

Third-party insurance provides damage cover for third-party vehicle as well as financial assistance if the third-party driver gets injured or dies in an unfortunate accident. The insurance company helps you financially if there is death, bodily injury, disability of the third-party driver. The Motor Vehicles Act of India has passed on a regulation that third-party insurance is mandatory, and it should be a priority whether you have a bike or car. If you're riding a bike or driving car without possessing insurance papers, it is considered as illegal. Do you own a vehicle, but do not have insurance? You should get one today.

In India, people mostly choose this type of insurance as it is mandatory, and the premiums are affordable.

What's covered under third-party liability insurance?

  • Financial liability cover to the third-party's vehicle
  • Liability cover to the third-party driver in cases like death, bodily injury or disability

What does the insurance not cover? 

  • Loss or damage to the vehicle if you're driving without any valid license
  • Loss or damage to the vehicle if you're under the influence of alcohol, or drugs
  • Due to oil leakage, if the vehicle's engine gets damaged

What is comprehensive motor insurance?

Comprehensive motor insurance comprises of third-party liability and Own Damage cover. Unlike third party insurance, where it doesn't cover costs relating to your vehicle's loss, the comprehensive coverage becomes an apt choice for you, especially if you're looking for overall motor insurance.  

What's covered under comprehensive motor insurance?

  • Personal injury or death in an accident
  • Cover for damage to the vehicle due to accident
  • Theft of your vehicle
  • Liability cover for third party property damage and bodily injury or death of the third-party driver
  • Loss or damages due to natural calamities like earthquake, flood, etc.
  • Loss or damage to the vehicle due to fire

What's excluded in the policy?

  • Does not cover the depreciation of the vehicle
  • Does not offer coverage if the vehicle gets damaged in case, you're under the influence of alcohol or drugs
  • Loss or damage due to nuclear war or mutiny war
  • Ageing of the vehicle
  • Loss or damage to the vehicle if you don't have a driving license
  • Electric or mechanical breakdown of the vehicle

How can you claim under motor insurance?

One of the significant aspects of motor insurance is filing for a claim.

In case there is an accident, you need to inform the insurance company about the same and below is how the process should be:

  • Call the insurance company & provide the card number
  • Note the number of the other vehicle involved in the accident
  • Keep a note of the witnesses’ names and contact details
  • Apart from this, the insurance company will also ask for the following information for furnishing:

i) Date and time of the accident

ii) Accident location

iii) Vehicle number and model name

iv) Brief description of the accident

These are the necessary details that the insurance company may ask. However, it is totally at the company's discretion what other information it would require approving the claim request. Make sure that you provide accurate details, else the claim may get rejected.

If there is a theft of your vehicle, the first thing you need to do is file an FIR at the police station and then inform the insurance company, which will take care of the rest of the process.

Add-on covers for Motor insurance

1) Zero depreciation:

As your vehicle ages, the insurance company deducts that depreciation value at the time of claim settlement. However, this rider option keeps the market value of your vehicle intact and pays the entire claim to you.

2) Roadside Assistance:

There may be a case when your vehicle breaks down while driving. In such a case, the insurance company offers roadside assistance like towing, refuelling, key replacement, etc. You can get the car/bike repaired or parts replaced at the insurer's garage network.

3) Engine protection:

If your vehicle's engine gets damaged, this add-on cover will provide financial assistance for engine repair service.  

4) Personal accident rider:

Fatal accidents can leave you disabled for life or lead to death. In such cases, personal accident rider option will be a boon, as it commits to secure your family's future in your absence.

5) Loss of personal belongings:

There may be an instance that you lose your belongings, or your valuables get stolen. By opting for this rider, the insurance company will compensate for the same.

Reasons to buy motor insurance

  • Mandatory: 

There are many reasons to purchase motor insurance, but one of the main reasons is the mandate of Third-party protection by the Motor Vehicles Act. In India, you cannot drive on the road without insurance; otherwise, it is considered a legal offense.

  • Reduces financial burden:

Besides third-party liability, comprehensive insurance will provide financial cover for repair and replacement of parts if your vehicle gets damaged due to any circumstances. You do not have to worry about spending from your pocket. The insurance company will directly settle the payments of the bills with the garage service.

  • Death benefit:

If you're the policyholder and you die in an accident; the motor insurance company will provide financial cover to your family, thus securing their future. In case of disability, the insurer will supplement regular income to your family.

Benefits of buying Motor Insurance Online

  • You can compare motor insurance policies online
  • You can read reviews and then decide which plan fits your budget
  • Reviews can help you make an informed and accurate decision
  • You do not have to pay hefty agent commission; therefore, online buying can be a cheaper bet
  • All the documents are saved with the insurance company in the form of soft copy. The policy gets activated instantly rather than an offline process
  • Online motor insurance encourages paperless transactions

Renew Motor Insurance online

Since buying insurance policies has become a digital process, you can even extend the cover online. It is simple, hassle-free, and easily accessible. Renewing motor insurance on time should be your priority as it will help you get a no-claim bonus if there is any. You can renew motor insurance online by following the steps:

Step 1: Know the date of renewal of motor insurance

Step 2: Log in to the insurance company website and click on the policy renewal

Step 3: Make a payment online

Step 4: Your policy will get renewed once the insurance company updates it

When you buy motor insurance, make sure you keep these things in mind. If you're searching for a brand with the best claim settlement ratio, then you consider buying motor insurance from IFFCO Tokio. It is one of the leading companies offering protection to your vehicle from every possible risk.