What is Motor Insurance ?
Motor Insurance is also known as vehicle insurance, it is purchased for cars, trucks, bikes, etc. It provides coverage against theft, physical damage, etc to the vehicle that are caused due to the man made or natural calamities. You work hard to buy a vehicle to enjoy its ride for business or personal needs. However, an unfortunate incident can take place any time and can cause heavy damage to your vehicle. The cost of repairing the vehicle or to replace it will be high; hence it is important to have vehicle insurance for providing complete care to your vehicle. Your motor insurance plan document is one of the most vital documents for your vehicle, as it is compulsory to have a motor insurance under Motor Vehicles Act. In India if you have any vehicle, then it is obvious that you must be carrying a vehicle insurance plan, mostly the third party insurance coverage which is compulsory. If you own a vehicle, then you must know a bit about vehicle insurance. You may have heard about a deductible or premium. However, are you really aware about the different sections of an auto insurance policy and do you know how to choose the best Insurance plan?
In India, we have two types of vehicle insurance products -Third party cover and a Comprehensive insurance plan. It may be confusing for you to choose the best vehicle Insurance plan, but if you know the features and benefits of theses insurance plan then you can select the best policy easily. Third party insurance is a type of insurance policy that provides coverage for the damages caused to the third party by you. It means that in the case of an accident, the third party insurance plan would cover all the damages that were caused to the third party, his/her car & its related accessories by you. It also provides coverage for injuries that were caused to the third party during the accident. It provides coverage for the third party liability, not on yours. Whereas, in the case of comprehensive insurance plan, it would provide coverage for all the damages that were caused to your vehicle and third party coverage is also included in it.
Depreciation Cap cover is an additional cover under motor insurance which is becoming popular now days, it mainly covers
- Depreciation Cover – Nil Depreciation on every part of vehicle
- Consumable Cover – All wear tear items like engine oil nut bolt etc
- Engine Protection – It mainly covers if cease of engine during water logging
- Key Loss Cover – It covers the cost of cover incase of misplacement or theft of key
- Loss of Personal Belonging Cover – Increase theft incidents also increase the fear in the car owner and this cover protect the belongings lying the car .
- Road side Assistance Cover – It provides accommodation, mechanic if any internal damage/ flat tyre while travelling on the road.