Types of motor Insurance.

In this rapidly moving world everybody and everything has a risk everytime. We never  know what will going to happen in the very next moment. We cannot do anything with the incidents which is happening and which are going to happen next but the one thing which we can do is secure ourself, our loved ones and our assets. So we get the insurance so that atleast we can cover the financial loss which may occur in the case of any mishappening. For example some of our family member got hospitalized or our car got damaged, for these types of mis happenings we get insurance so that we don't have to face financial problems in the future. In this article we are going to discuss about motor insurance and the types of motor insurance.

Motor insurance

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Motor insurance basically covers the risk of cost that comes from being damage of your vehicle and also protect third party from being damaged by your vehicle.

so here the question is who is third party, the person  or the property damaged by you is third party means everyone except the driver and owner will be third party.

Let's suppose I accidently hit a jewellery shop in which some people also got injured in jewellery shop then the jewellery shop and the injured person will be the third party Then, the company from which I have insured my vehicle will give accommodation to the jewellery shop owner and injured persons.

 Types of Motor Insurance

 1. Liability

According to motor vehicle act 1938, Third party insurance is mandatory on vehicles. You can't drive your car if you don't have liability insurance.

Covers in liability

• Third party cover

In the case of property damage maximum sum insured which can claim third party is up to 7.5 lakhs. But in both the cases property damage or a person injured accommodation is decided by MACT (Motor Act Claim Tribunal).

• Owner driver cover

In normal cases owner driver cover is also mandatory except some cases in which this cover is not applicable or not mandatory. The sum insured in this cover is up to 15 lakhs. Owner driver cover will trigger in the case of accidental death of owner or permanent disability.

• Paid driver cover 

 Paid driver cover will trigger in the case of accidental death of driver. The maximum sum insured in that case is up to 1 lakh. But according to workmen compensation act,1923  you can claim for higher accommodation than the sum insured. In that case court decides the accommodation to be given to the driver's family.

• Passenger cover

Except owner driver and paid driver all the person who are sitted in the vehicle will be cover in this. The sum insured is depend on the insurer how much premium they get from insured. This cover is not mandatory. Its premium depends upon the number of seats in the vehicle and sum insured.

•  CNG

If CNG is fitted in the vehicle then 60 rupees as the liability of CNG kit will be added in liability premium doesn't matter the CNG kit is company fitted or fitted by the owner from outside.

 2. Comprehensive package policy

Comprehensive package policy covers vehicle risk also with liability. Maximum sum insured on vehicle accident is depend on the coverages which insured get from insurer. There are more than 25 companies in India which does motor Insurance and every company offers different different coverages according to the customers needs.

The most demanding package policy is zero depreciation policy. Nowadays every vehicle owner know about zero dep. Policy and its benefit. There are varieties of names for this policy like bumper to bumper, Nil depreciation, zero depreciation and many more.

Read here: Best car insurance companies in India. 

So these two are the main types of policies. Thank you for your useful time