MOTOR INSURANCE
Vehicle insurance is insurance for car, truck, motorcycle or other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. Vehicle insurance may additionally offer financial protection against theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying, weather or natural disasters, and damage sustained by colliding with stationary objects. The specific terms of vehicle insurance vary with legal regulations in each region. There are different types of Motor Insurance in India:
Two Wheeler Insurance
The Two Wheeler Insurance under the Auto Insurance in India covers accidental insurance for the drivers of the vehicle. The amount of premium depends on the current showroom price multiplied by the depreciation rate fixed by the Tariff Advisory Committee at the time of the beginning of policy period.
Private Car Insurance
In the Auto Insurance in India, Private Car Insurance is the fastest growing sector as it is compulsory for all the new cars. The amount of premium depends on the make and value of the car, state where the car is registered and the year of manufacture.
Commercial Vehicle Insurance
Commercial Vehicle Insurance under the Auto Insurance in India provides cover for all the vehicles which are not used for personal purposes, like the Trucks and HMVs. The amount of premium depends on the showroom price of the vehicle at the commencement of the insurance period, make of the vehicle and the place of registration of the vehicle.
Third Party Insurance
As per the Motor Vehicles Act, 1988, Third Party Insurance is a statutory requirement. Under this policy, the prime beneficiary of the policy is neither the original insured nor the insurance company, but a pretentious third party. As per the rules, the Insurance Regulatory and Development Authority (IRDA) of India compute the damages. Third-party insurance also referred to as liability insurance essentially provides financial coverage to an insured person against any liability incurred in case of any loss/damage caused to third-party property or the person. Under the Motor Vehicles Act, 1988, possessing third-party insurance is a legal mandate.
The auto insurance generally includes:
Ø Loss or damage by accident, fire, lightning, self ignition, external explosion, burglary, housebreaking or theft, malicious act.
Ø Liability for third party injury/death, third party property and liability to paid driver.
Ø On payment of appropriate additional premium, loss/damage to electrical/electronic accessories.
The auto insurance does not include:
Ø Consequential loss, depreciation, mechanical and electrical breakdown, failure or breakage.
Ø When vehicle is used outside the geographical area.
Ø War or nuclear perils and drunken driving.
Important Note: - The contents available on this site is for General awareness/Knowledge only. The actual canvases depend upon the cover opted for and subject to terms and condition of the policy issued by respective Insurance Companies.
