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Motor Insurance
Motor Insurance is essential for safeguarding your vehicle against various risks and covering liabilities for damage or injury caused by it. In India, the Motor Vehicles Act, 1988, mandates third-party liability coverage for all vehicles on public roads, ensuring protection for injury or damage to others. Additionally, insuring your own car against damage is prudent as it provides a financial cushion against unexpected events such as accidents, theft, and natural calamities, all in exchange for regular premiums. Add-ons and riders help tailor plans and manage costs, ensuring peace of mind if secured early.
Key Benefits of Motor Insurance:
- Compliance: Ensures you meet legal requirements for vehicle insurance.
- Financial Security: Protects you from financial loss due to vehicle damages or accidents.
- Peace of Mind: Offers assurance that your vehicle is protected against unforeseen events.
Common Coverages Under Motor Insurance
Third-Party Liability cover
Covers damages to third parties and third part property in case of an accident involving your vehicle.
Own-Damage Insurance
Covers damages to your own vehicle from fire, rain, theft, etc. You can claim for repair expenses.
Paid Driver PA Cover
Offers protection for hired drivers against accidental disability or death.
Passenger PA Cover
Ensures protection for passengers against accidental disability or death.
Comprehensive Coverage
Covers damages to your vehicle due to accidents, theft, fire, natural calamities, and more.
Return to Invoice Cover
Compensation equal to the car’s invoice value if it’s stolen or beyond repair.
Zero Depreciation
Covers the full cost of repairs without deducting for depreciation (applicable only to vehicles less than 5 years old).
Engine Protection
Covers damages to the engine due to water ingression, oil leakage, or other specified causes.
Roadside Assistance
Provides assistance for minor repairs, towing, and other services during breakdowns.
Consumable Cover
Expands coverage to consumable parts like engine oil, coolant, grease, nuts, bolts, etc.
Tyre Protection Cover
Covers repair and replacement costs of vehicle tyres, including labour charges.
Key Replacement Cover
Financial compensation for replacing or repairing lost, damaged, or stolen keys and lock-set.
NCB Protect Cover:
Helps retain your No Claim Bonus even if a claim is made.
Loss of Personal Belongings Cover
Financial coverage for damage to personal belongings inside the insured vehicle.
Exclusions in Motor Insurance
Motor insurance policies have certain exclusions you should be aware of to avoid surprises:
- Wear and Tear: Ordinary wear and tear, including mechanical or electrical breakdowns, engine or body part failure, and damage due to rust or weather, are not covered.
- Tyres, Tubes, Electrical Components: Damages from regular use, severe weather, short circuits, oil leakage, or rodents are excluded.
- No Valid Driver’s License: Damages when the driver does not have a valid driver’s license are not covered.
- Under Influence: Damages when the driver is under the influence of drugs or alcohol are excluded.
- Usage Misalignment: Damages when the vehicle is used for purposes other than those specified in the insurance certificate are not covered.
- Guideline Violation: Damages from violating the vehicle manufacturer’s guidelines are excluded.
- War and Similar Events: Damages due to war, terror attacks, civil war, radiation, or nuclear materials are not covered.
- Geographical Limits: Damages occurring outside the specified geographical area of coverage are excluded. A separate policy is needed for coverage outside India.
Factors Affecting Health Insurance
- Make, Model, Variant: The make, model, and engine capacity of your vehicle significantly affect your premiums. Premiums for sports cars or vehicles with larger engines are higher. For instance, a BMW 5 Series will have higher premiums than a Hyundai Verna.
- Location: Premiums are higher if your car is registered in an area with dense traffic or high vandalism rates.
- Age of the Vehicle: Older vehicles have higher depreciation, leading to lower premiums compared to new vehicles.
- Previous Claims: If you have made claims in the past, you won't be eligible for a No Claim Bonus (NCB), increasing your premiums.
- Fuel Type: Cars running on petrol or diesel typically have lower premiums compared to CNG cars due to higher maintenance costs of CNG vehicles.
- Insured Declared Value (IDV): Represents the market value of the vehicle. Higher IDV means higher premiums.
- Voluntary Deductible: Opting for a higher deductible reduces your premium. It’s the amount you pay out of pocket before the insurance covers the rest.
- Installing Recognized Anti-theft Devices: Installing anti-theft devices in your vehicle can fetch you discounts from the insurance company, as these devices enhance the security of your vehicle and prevent theft.
- Safe Driving Records: Maintaining a safe driving record can result in lower premiums, as it demonstrates lower risk to insurers.
- Usage-Based Insurance: Premiums can be based on how much and how well you drive. This can lead to savings for infrequent or cautious drivers.
Motor insurance is crucial for protecting your vehicle against accidents, theft, and unforeseen damages. It is necessary for legal compliance and provides peace of mind. With numerous choices from Indian insurers and various channels, finding the right policy can be overwhelming. Our expertise helps you find the ideal motor insurance tailored to your needs.