Welcome to SkyFire Insurance Broking LLP!
Welcome to SkyFire Insurance Broking LLP!
Motor insurance is simply like any other insurance policy, however unlike other insurances, it is “mandatory’’, and as the name says, it is an insurance that is related to every type of motor vehicles - motorcycles, cars, jeeps, commercial vehicles, etc.
Motor insurance has been made mandatory by the government for the safety of you and others. And the annual premium you pay is just a small sum when compared to the advantages it has to offer you in case of, god forbid, any mishap.
Here’s yet another misunderstanding many people have, Motor Insurance covers solely the motor vehicle. Wrong again!
So first, let's begin with the types of Motor Insurance policies, and by and large what they cover! Motor insurance can be classified on two things
1. The type of motor vehicle for which you are taking insurance
2. The amount of coverage that you wish to cover your vehicle for
So, what are the different types of motor insurances in India based on the type of vehicle owned?
1. Private Car Insurance policy
This type of motor insurance needs to be taken for any private car owned by an individual and is mandated by the Government of India. It covers the motor vehicle for damages against accidents, fire, natural disasters, theft among others, and also covers any injury to the owner. Additionally, it covers any damages and injuries caused to the third party.
2. Two Wheeler Insurance Policy
This insurance policy covers two-wheelers like a scooter or a motorbike and is mandated by the Government of India. The two-wheeler insurance is covered against damages from accidents, disasters, fire, theft, etc. as well as any damages and injuries to the third-party. Additionally, it offers a mandatory personal accident cover for the owner rider and can be taken for passengers too.
3. Commercial Vehicle Insurance Policy
This insurance covers all vehicles that are not used for private purposes. This type of insurance covers all those vehicles which are not used for personal use. Trucks, buses, heavy-duty vehicles, lightweight commercial vehicles, multi-utility vehicles, agricultural vehicles, taxi/cab, ambulances, auto-rickshaw, etc. are some commercial vehicles that are covered under this insurance.
It is the most common type of vehicle insurance, in which only damages and losses to a third party person, vehicle, or property are covered.
Comprehensive insurance is one of the most beneficial types of vehicle insurance that covers both third-party liabilities and damages to your vehicle as well
| Third Party | Comprehensive | |
|---|---|---|
| Damages/Losses to your vehicle due to accident | ||
| Damages/Losses to your vehicle due to fire | ||
| Damages/Losses to your vehicle due to natural calamity | ||
| Damages caused to Third Party Vehicle | ||
| Damages caused to Third party Property | ||
| Personal Accidental Cover | ||
| Injury/Death caused to a Third Party Person | ||
| Theft of your vehicle | ||
| Pick up & Drop at Doorstep | ||
| Extra Protection with customized add-ons | ||
Below are few listed ‘Add on’ covers that can be availed at a slight premium over the basic motor insurance policy cost.
As we grow old, aging causes problems for us which becomes a drawback. The same thing happens with vehicles. The older it gets, more the value of the vehicle declines or ‘depreciates’. But not for Zero depreciation add-on cover, it ensures that the value of your vehicle will remain as valuable as the day you bought it. Altogether, the insurer will not consider depreciation during the final settlement!
The Engine protection cover is an add-on cover that protects you financially against damage caused to an engine or gearbox of your vehicle. Any damage, from water entering the engine to oil leakage, is covered under this policy.
Imagine your vehicle breakdowns on a lonely road at a stroke of midnight and no one to help you, worst nightmare? Not to concern, roadside assistance there to rescue. All you need to call them, they come and repair your vehicle on the spot. If the repair is not possible, then they will tow your vehicle to the nearest service station.
There are certain components or substances used in the repairs of any car. Consumable parts like nut, bolts, pipe, engine oil, grease, coolant, etc. These are not covered under any vehicle insurance policy. So, motor insurance firms provide a consumable cover add-on to cover the service costs of your vehicle.
Return on Invoice cover is a type of add-on cover that helps you to get as much as the original on road price of the car, in case it was totally damaged. Remember, most of the vehicle insurance company offers this add-on cover for vehicles less than 3 years of age.
As it is obligatory by the government under the Motor Vehicles Act of India, 1988, you need to purchase motor insurance whenever you are buying a new vehicle. While driving on roads, it is mandatory to carry your driving license along with the motor insurance policy documents as well.
The following incidents are covered under the insurance policy: Accidents, theft, losses, fire, riots, strikes, explosions, any natural calamity, terrorism, transportation, etc.
There are two types of motor insurance policy: Third party liability and comprehensive cover. As stated above, third party cover is for the damages of the third party only exclusive of any damage to you and your vehicle, whereas all types of damages are covered under comprehensive insurance including you and your vehicle.
If you do not have a motor insurance policy you will be punished with heavy penalties by the traffic police and also can be sent to jail as it is compulsory to carry a motor insurance policy for your vehicle under the Motor Vehicles Act of India, 1988.
Yes, it is very easy to compare and buy motor insurance online. Only you have to visit the motor insurance company website and select a plan that suit you and just pay for it.