Motor insurance is coverage of all commercial and private motor vehicles like car, motorcycle, bus & truck. As per the government guidelines , motor insurance policy is a necessary document for running any vehicle on road, not having motor insurance is a punishable crime. The reason behind this is protection of vehicle against physical damage and to prepare the owner for expenses which may incur on the repair of physical damages if any accident happens. However, the vehicle owner has option to choose type of insurance he wants.
1.Comprehensive - Comprehensive insurance is a package policy including both parts, own damage and third party. Own damage covers the owner and the vehicle of the owner for any expenses and insurance company is liable to pay for these expenses against physical damage caused in accident. Third party covers any legal charges if in an accident of any other person or his vehicle is damaged physically and he puts those charges on you then your insurance company will be handling those charges from your side.
1.Third Party - If person does not wants to take comprehensive policy then he is free to buy only third party policy but then insurance company is not liable to pay any charges to the owner against physical damages caused in an accident. However, company is still liable to pay legal charges if any other person is involved in accident demands compensation.
1.Own Damage - This is a new category of insurance which is generally taken in those cases where the previous insurance done for vehicle was of 5 years as some 5 year insurance include only 1 year of comprehensive type and rest 4 years are only third party type which is also called 1+4 insurance.
As per the latest government guideline any new vehicle purchased cannot leave from showroom without compulsory 5 year insurance. So, customers with 1+4 type insurance have to buy own damage policy in second year as their vehicle is new and nobody would want to run their new vehicle on road without own damage insurance.
1. Physical Damage– Covers physical damages caused in unforeseen accidents or man-made damages like riots, burglary or terrorist act.
2. Theft – Covers up to the IDV of stolen vehicle. Don’t forget to file police complaint.
3. Fire – Damages caused to your vehicle due to fire, are covered up to the IDV of your vehicle.
4. Natural Disasters– Damages and losses caused by such as floods, earthquakes, landslides or cyclones.
5. Third Party Claims – In cases charges are levied by seconds party involved in accident with you.
