Motor insurance (also known as vehicle / car / auto insurance) is insurance purchased for cars, trucks, and other road vehicles. Its primary objective is to provide protection against physical damage resulting from traffic collisions and against liability that could also arise there-from.
Why Motor Insurance?
- Motor Insurance (Third Party) is compulsory on purchase of new vehicles whether acquired for commercial or private usage as per Motor Vehicle Act in India. One can be penalized for driving without a valid cover.
- An accident can happen to anyone even if the driver of the car is not at fault. This may result into a lot of damages caused in person as well as to the car. Motor Insurance turns to be very beneficial under such circumstances.
- If the driver is liable for an accident which results in bodily injuries to a third party, then the expenses have to be borne by the owner of the car? In such a case third party motor insurance saves from a devastating financial blow.
- Cars are an expensive investment for an individual. An accident can turn this investment into a huge loss as well. Hence it is important to have motor insurance.
- It also helps to cover for damages caused other than an accident like fire, theft etc.
Motor Insurance covers:
- Accident caused by external means.
- Man made calamities, such as Explosion, Burglary, Theft, Riots & Strikes, Malicious Acts, Terrorism, etc.
- Natural calamities like Earthquakes, Fire, Floods, Typhoons, Hurricanes, Storms, Cyclones, Lightning, etc.
- While in Transit by rail/road, air or waterway.
- Third party legal liability.
- Cover for an owner driver in case of death.