Motor insurance is a type of insurance that provides coverage for vehicles against various risks. In India, motor insurance is mandatory under the Motor Vehicles Act, 1988, which requires all vehicle owners to have at least third-party liability insurance. This means that if you own a vehicle in India, it is not only wise but also mandatory to get motor insurance.
Motor insurance in India is offered by various insurance companies, both public and private. The insurance policy covers various types of vehicles, including cars, two-wheelers, commercial vehicles, and others. The policy offers coverage against damages caused by accidents, natural disasters, theft, and other unforeseen events.
Types of Motor Insurance
There are two types of motor insurance policies available in India – third-party liability insurance and comprehensive insurance.
Third-Party Liability Insurance – As the name suggests, this insurance policy offers coverage for damages caused to a third party, including death, injury, or property damage. This policy is mandatory in India, and it covers the legal liability of the insured towards third-party liabilities. However, this policy does not provide any coverage for damages caused to your vehicle.
Comprehensive Insurance – This insurance policy offers comprehensive coverage for damages caused to the insured vehicle, third-party liabilities, and personal accidents. It offers coverage for accidents, natural calamities, theft, and other unforeseen events. This policy is not mandatory but is highly recommended for vehicle owners in India.