Motor insurance is also known as vehicle insurance which is purchased for cars, trucks, bikes, etc. It provides coverage against damages, vehicle theft, etc. due to man-made or natural disasters. People buy vehicles for business or personal needs and they work hard for it. However, an unfortunate accident can happen at any time and cause serious damage to your vehicle. The cost of repairing or replacing the car will be high; Hence it is important to have car insurance to provide complete care for your car.
Motor insurance plan documents are among the most important documents for your vehicle, as it is imperative that you have vehicle insurance under the Motor Act. In India, if you have a car, then obviously you have to get a motor insurance policy, which is mostly third-party insurance coverage and it is mandatory. If you have a car, you should know something about car insurance. You must have heard about a discount or premium. However, do you really know the different categories of auto insurance policies and do you know how to choose the best insurance plan?
What is Vehicle Insurance?
A vehicle insurance policy is a legal contract between an insurance company and a policyholder to provide coverage for any loss or damage incurred by the policyholder in an unforeseen accident as well as a natural disaster. In this way, the policy ensures peace of mind and security for the policyholder on the road.
Vehicle insurance is mandatory for all two-wheelers and four-wheelers such as cars, bikes, scooters, and trucks traveling on the roads in India. Vehicle owners can benefit from auto insurance even for commercial vehicles as well.
People try to buy the best car, but they don’t care to get car insurance. However, auto insurance not only covers you financially but also protects you from various legal issues. In this article, we will learn why auto insurance is necessary and what are its benefits. First of all, will we know how many types of vehicle insurance are covered by vehicle insurance?
Vehicle Insurance in Hindi – मोटर वाहन बीमा सभी वाहन मालिकों/चालकों के लिए सबसे महत्वपूर्ण दस्तावेज है। इसका मुख्य उद्देश्य बीमित वाहन को प्राकृतिक और मानव निर्मित आपदाओं से होने वाली शारीरिक क्षति या हानि से पूर्ण सुरक्षा प्रदान करना है। ओन-डैमेज कवर के अलावा, ऑटो इंश्योरेंस पॉलिसी तीसरे पक्ष की देनदारियों के लिए भी कवरेज प्रदान करती है, जो किसी तीसरे पक्ष की आकस्मिक क्षति, चोट या मृत्यु से उत्पन्न होती है।
मोटर बीमा को कार, ट्रक, बाइक आदि के लिए वाहन बीमा के रूप में भी जाना जाता है। यह कृत्रिम या प्राकृतिक आपदाओं के कारण वाहनों आदि की क्षति और चोरी के खिलाफ कवरेज प्रदान करता है।
लोग व्यवसाय या व्यक्तिगत जरूरतों के लिए वाहन खरीदते हैं और उसके लिए कड़ी मेहनत करते हैं। हालांकि, एक दुर्भाग्यपूर्ण घटना कभी भी हो सकती है और आपके वाहन को भारी नुकसान पहुंचा सकती है। वाहन की मरम्मत या बदलने की लागत अधिक होगी; इसलिए अपने वाहन की पूरी देखभाल करने के लिए वाहन बीमा होना जरूरी है।
Types of Motor Vehicle Insurance
Motor insurance can be broadly categorized under the following headings:
Car Insurance provides coverage against the accidental loss or damage of owning a vehicle or a third party. While choosing a car insurance policy, a person should always compare the premiums offered by different insurance companies to ensure that he gets the best deal. The amount of the premium depends on the type and value of the vehicle, the condition in which it was registered, and the year of manufacture.
Car insurance is an arrangement between the insured and the insured. After buying a car with your hard-earned money, you will also have to pay for repairs and damages with the same money, which can empty your pocket and affect your savings. There are many online auto insurance companies that you can consider when making your purchase.
In India, it is imperative that you have an insurance policy for your car as it provides financial coverage for any loss or theft of the vehicle and gives you peace of mind in the event of an accident that may be related to you or a third party.
Two Wheeler Insurance
Two Wheeler Insurance provides protection for bikes and scooters. It covers two-wheeled vehicles against any special damages as well as any accidental loss of third-party property or persons. Similar to auto insurance, the premium for two wheels depends on the bike’s age, make and model, registration year, etc.
The two-wheeler insurance plan provides financial coverage against scooter, motorcycle damage, theft, and liability coverage. Two-wheeler insurance is required due to poor road conditions and poor traffic conditions in India, which can lead to accidents beyond your control. You can renew your two-wheeler insurance online with the help of leading bike insurance companies.
Commercial Vehicle Insurance
Commercial vehicle insurance helps all commercial vehicle drivers reduce losses they may incur due to damage to their vehicle. All vehicles that are used for commercial purposes, such as buses, trucks, ambulances, loaders, canters, multi-purpose vehicles, agricultural vehicles, etc., are insured under Commercial Vehicle Insurance. Commercial vehicle insurance also provides protection against damages in the event of an accident or disaster.
In the event of a road accident, apart from compensation for damage to any other person or property (third party), the facilitation of claims for death or bodily injury is also part of this type of insurance policy.
When determining the premium of the insurance policy, the make and model of the commercial vehicle, place of registration, year of manufacture, spot fair price, etc. are taken into account. Also, whether the insured is a person or a company.
What Does Vehicle Insurance Cover?
Auto insurance covers damage to the vehicle due to the following perils:
- Riot and strike
- Fire and burglary
- Terrorist act
- Flood, storm, hurricane
What is Not Covered by Motor OR Vehicle Insurance?
Always remember that your car insurance will not provide coverage in the following situations-
- If the driver is under the influence or abuse drugs.
- The vehicle/two-wheeler/commercial vehicle is used for illegal activities or for another purpose mentioned in the policy.
- Not having a valid driver’s license.
- Any loss or damage to the insured vehicle if it occurs outside India.
How to File a Vehicle Insurance Claim?
The document and procedures involved in settling a car insurance claim depend on the type of car and the nature of the loss.
File a claim in case of damage to the owned / two-wheeled/commercial vehicle
To start the process, the insured has to submit a detailed loss estimate to the insurance company. Independent automotive surveyors with engineering backgrounds are tasked with evaluating the cause and extent of the loss. They carefully inspect the damaged vehicle and submit their survey report to the insurance company who will review and inspect it according to the recommendations contained therein. The usual practice is to authorize the repairs with the repairman to whom the letter was sent in this regard.
Apart from the claim form, other documents required for claims processing are-
- Fitness Certificate (for commercial vehicles)
- Driving License
- Registration Certificate Book
- Final invoice from repairers
- police report
Upon receipt of the notification from the insured or the third party, the matter is transferred to the attorney. Complete information about the accident is obtained from the insured with the following documents:
- Police Report
- Driving License
- Medical Certificate
- Death certificate in the case of a fatal case
Parameters that determine the Motor insurance premium
- Person’s Age
- Driving History
- Manufacture of commercial vehicle / car / two-wheeler
- A Person’s Profession
- Geographical Location
Things to Consider Before Buying a Motor Vehicle Insurance Plan
- There is no doubt that the Internet has provided an easy way to purchase an auto insurance plan. Currently, there are two factors to watch out for while purchasing auto insurance – you and your insurance company.
- As the insurance company decides which policy it offers you and the customer must decide which insurance plan he should purchase to meet his needs.
- At the time of purchasing the policy, check if your vehicle insurance policy provides coverage for bodily injury.
- If yes, see coverage limit. Also, make sure that the policy provides coverage for liability for damage to the vehicle in the event of an accident.
- Purchasing the right vehicle insurance is a daunting task. Hence, you need to do some research to get the best policy.
- For such research, you need to know a few things like company reputation, auto insurance plan, claim percentage, garage grid, budget, etc.
- Apart from this, you should read the full terms and conditions of the document which helps you to make the claim in the time of need.