Motor Insurance

Motor insurance is a combination of two words i.e. ‘motor + insurance’ Motor vehicle under the “Motor Vehicles Act” is a self-propelled vehicle Insurance is protection against any ‘unforeseen risk’ arising out of an accident

As per Section 146 of Motor Vehicles Act 1988 No person can drive a vehicle without proper insurance, which reads as under:

• Motor insurance is protection for the “ Motor Vehicle” against the “ Unforeseen Risk” arising out of accident
• What does motor insurance Cover

1. Third Party Cover – Creation of liability
• Injuries/Death to person/s
• Damage to property of others
2. Financial losses
• Partial damages to the vehicles itself
• Theft or parts or the theft of the vehicle itself
• Total loss/Damage of the vehicle

There are two types of Policies:

(i)  Liability Only Policy:  This covers Third Party Liability for bodily injury and/ or death and Property Damage. Personal Accident Cover for Owner Driver is also included. This policy is also known as ACT only policy etc.

(ii)  Package Policy(Comprehensive):  This covers loss or damage to the vehicle insured in addition to (i) above.

1. by fire, explosion, self-ignition or lightning;
2. by burglary, housebreaking or theft;
3. by riot and strike;
4. by earthquake (fire and shock damage);
5. by flood typhoon hurricane storm tempest inundation cyclone hailstorm frost;
6. by accidental external means;
7. by malicious act;
8. by terrorist activity;
9. whilst in transit by road rail inland-waterway lift elevator or air;
10. by landslide rockslide.

In current scenario there are many add-on are offering by most of insurance players which will help you to protect in various financial losses. Previously such kind of add on are not available but now a days this is very much essential tools to protect wider cover

 

1. Nil Depreciation/Zero Depreciation
2. Consumables Cover
3. Engine Protect & Gear box cover
4. Road side Assistance ( RSA)
5. Key Replacement/Key Cover
6. Tyre Secure
7. Loss of personal belongings
8. Emergency Transport & Hotel Expenses
9. Return to Invoice
10. No Claim bonus Protection
11. Mandatory Deduction protect/Waiver of Compulsory deduction
12. Windshield Glass Clause
13. Life time road tax Clause
14. Passenger assist
15. Daily Conveyance benefit

(For more details & Coverages please refer Policy wording)

The Comprehensive Insurance policy excludes the loss or damage caused due to:

• Normal wear and tear and general ageing of the vehicle
• Depreciation or any consequential loss
• Mechanical/ electrical breakdown
• Loss/ damage due to war, mutiny or nuclear risk
• Damage to/ by a person driving any vehicles or cars without a valid license
• Damage to/ by a person driving the vehicle under the influence of drugs or liquor
• Vehicles including cars being used otherwise than in accordance with limitations as to use
• Wear and tear
• Consumables
• Damage to tyres and tubes unless the vehicle is damaged at the same time, in which case the liability of the company shall be limited to 50% of the cost of replacement
• Driving the vehicle against the limitations as to use.