Just as you would insure any of your prized possessions, you would also ensure your vehicles (two-wheeler or three-wheeler) to secure them against damage, theft, natural calamities, fire, and so on.
Motor insurance is a type of insurance cover that allows you to insure a commercial or a personal use vehicle. According to the motor vehicles act 1988, it is mandatory for owners of cars and commercial vehicles to have a third-party insurance cover for vehicles driven on public roads. In case you own a vehicle that has a high value, your insurance cover shields it against loss due to theft or road accident.
Types of motor insurance:
Listed below are the types of car insurance:
- Third-party liability covers: In this, the insurer provides cover for the damages caused by you, to a third party. In case of accidents, this type of insurance covers all damages to the third party or to their vehicles and their accessories. However, it only covers the injuries or the damage suffered by the third party and not the policyholder.
- Comprehensive motor insurance plan: This is comprehensive insurance that compensates for the damages caused to a third party as well as the damage suffered by the policyholder. It also ensures the buyer against damages due to natural calamity or man-made causes.