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Motor Insurance -

Vehicle insurance, often known as motor insurance, is a form of insurance coverage that protects you financially in the event that your car or two-wheeler is damaged by calamities caused by nature or by humans, including earthquakes, floods, lightning, as well as theft, among other things. The operation of auto insurance is rather straightforward.

In exchange for a predetermined amount of premium, the insurer provides coverage. Numerous variables, including as the car’s model, age, accessories, driving style, etc., affect the premium amount. Continue reading to learn the benefits of and reasons for having auto insurance.

What is Motor Insurance?

If your car is damaged by natural or man-made disasters, you can use motor insurance to protect your finances.

The main advantage of automotive insurance is the financial compensation paid in the event that your car is destroyed by an accident, riot, fire, thunder, lightning, flood, etc. Additionally, it offers coverage in the event that your car is stolen.

Types of Motor Insurance Policy -

Motor insurance comes in three different varieties. As follows:

1) Third-Party motor Insurance

This kind of automobile insurance protects you from lawsuits brought on by third-party property damage caused by your car. In other words, it compensates the third party for harm or death brought on by your car.

Damages to you or your car are not covered by third-party motor insurance. Every motor vehicle operating on public highways must be covered by third-party motor insurance.

2) Own Damage Motor Insurance -

Own damage automobile insurance pays you money for the losses your car suffers in the event of an accident, as the name implies. It covers the costs of replacing or repairing broken parts, including personal items that were in the car at the time of the accident.

3) Comprehensive Motor Insurance -

The advantages of third-party insurance and an own damage coverage are included in a comprehensive car insurance plan. It gives coverage against a variety of risks, including fire, theft, riots, vandalism, lightning, flood, tornado, etc., giving your car 360-degree safety. Purchasing a thorough motor insurance coverage makes sense for complete protection.

Importance of motor Insurance Policy

1) Provides a financial safety net in the event of an accident-

In the event that your car is damaged due to an accident, earthquake, lightning, flood, etc., motor insurance provides you with a financial safety net. Be aware that maintaining your car after these incidents can be very expensive. However, a motor insurance plan makes a difference.

Additionally, car insurance pays for expenditures paid if an accident results in bodily harm. In other words, it covers hospital bills incurred as a result of a collision involving your car.

2) Handles a third party's liability -

This is just another justification for the significance of motor insurance. It handles third-party liability that results from harms to a third party that include your vehicle.

In other words, your insurer defends you against legal actions by paying for a third party’s medical expenses.

3) Required by Law -

Any vehicle operating on public highways must be insured, particularly for third-party liability. Having no insurance might result in serious penalties. In contrast, having auto insurance gives you piece of mind because you realize you get a backup plan in place in the event that your car suffers damages of any type.

4) Assurance in the event of death -

The worst result after an accident is probably death. If you are the only provider for your family, your sudden death could leave them in a precarious financial situation. However, the payout from a car insurance coverage might support your family’s daily needs and enable it to maintain financial independence.

What is covered in Motor Insurance?

When purchasing motor insurance, it’s crucial to comprehend the concept of coverage. You travel by car to work, to complete duties and have fun with your family, or to spend time with friends. As a responsible automobile owner, you maintain the condition of your vehicle, drive safely, and follow all traffic laws. So, you want to be able to drive without worrying. Despite your preparations, your car could encounter unforeseen roadside circumstances.

Motor insurance is the finest option to relieve your financial concerns in such circumstances. Protection is provided under all types of automobile insurance, subject to the precise terms and conditions of your policy, for monetary losses resulting from any unlucky incidents involving your car.

You should put all of your attention into getting well after a car accident and not stress about the financial fallout. You should always have enough motor insurance and have it in force in order to handle any such occurrence with minimum anxiety. In terms of protection, insurance coverage describes the different options. You can pick from a variety of add-ons to strengthen the protection provided by the policies in addition to the standard coverage under the policy.

Third-Party Motor Insurance Covers :

  • You will receive the following advantages when you purchase this kind of car insurance coverage:
  • Cost of replacing or repairing a damaged car owned by a third party
  • Hospitalization and medical care for others’ expenses
  • Liabilities caused by third-party deaths

Own damage Motor Insurance Covers :

Your vehicle’s damaged repairs will be covered if you choose to purchase Own damage motor insurance coverage. The age of the vehicle and the insured declared value are factors in calculating the cost of collision coverage.

The upper limit reimbursed under the collision coverage policy is determined by the IDV less accrued depreciation when a claim is made. You should obtain collision coverage if you borrowed money to buy your car.

Personal Accident Cover :

You are employing personal accident vehicle insurance coverage if you want to safeguard yourself, the owner-driver of the automobile, by choosing to be reimbursed for medical costs following an accident.

Depreciation-free Insurance :

Usually available as an add-on to auto insurance policy, this coverage. Suppose you have to replace some parts because your car is damaged. The depreciated worth of the parts will be taken into account by the insurer when settling claims. You can collect the full claim amount with a Zero Depreciation Cover by not taking any cost depreciation into consideration.

Comprehensive Motor Insurance Covers :

As it covers liability for third parties, damage to one’s own vehicle, coverage for personal accidents, as well as all non-collision damage like storm, flood, fire, and theft, this form of coverage offers the maximum level of protection. With a variety of add-ons, you can further improve a comprehensive motor insurance coverage.

What is not Covered in Motor Insurance?

1) Regular wear and tear of your vehicle

As it covers liability for third parties, damage to one’s own vehicle, coverage for personal accidents, as well as all non-collision damage like storm, flood, fire, and theft, this form of coverage offers the maximum level of protection. With a variety of add-ons, you can further improve a comprehensive motor insurance coverage.

2) Your individual possessions

If your automobile is broken into or destroyed, your insurance will cover the costs of the repairs, but it won’t cover any theft or damage to the personal items you keep in the car. Make sure to put your items away and out of sight to keep them safe.

3) Driving without the required documentation

It is against the law to operate a vehicle without the necessary documentation, such as a valid driver’s licence, automobile registration, PUC certificate, and motor insurance policy. Therefore, if you ever have an accident and don’t have all the required paperwork, you won’t be compensated for your losses or damages. So, make absolutely sure you keep all of your legal documentation on hand.

4) Using a personal vehicle for work purposes

If a personal car is used for business activities, your insurance won’t offer coverage. If your insurance does not cover commercial vehicles, you cannot file a claim if your car is involved in an accident while transporting anything for your business. This type of insurance, referred to as “Business Use,” is typically excluded from personal auto policies.

5) Breaking traffic laws

You must abide by all traffic regulations if you want to be a responsible driver. You will not be compensated for any damages which happen within that period if you break the rules of the road, drive while intoxicated, or run a red light.

6) No coverage when using another person's vehicle

If an accident occurs while you are driving another’s vehicle or a hired vehicle, your claim for damages will be denied. Only claims made for the car that is registered in the insurance holder’s name will be covered by the insurer. The insurance will deny the claim on the same reasons if your partner or any other close relative drives your car and causes an accident.

7) Your motor insurance coverage not being renewed

Keep in mind that you should always have a current auto insurance policy. The date of your policy’s renewal should be kept in mind. You must renew before the policy expires even though your insurer will send you a renewal alert. Your insurer will not consider your claim if you have a lapsed or expired coverage and are involved in an accident.

8) Modifying the vehicle

Many individuals like to add accessories to their cars to customize them. Remember to notify your insurer if you add any components or accessories to your car; otherwise, your claims will be denied because these modified items were not covered when you purchased the policy.

9) Consumables

The consumables of the car are not covered by your comprehensive motor insurance policy. These include items like nuts and bolts, oils and lubricants, and gasses that have a finite lifespan. You are expected to cover the cost of replacing these consumables out of your own pocket at the point of claim settlement.

How to File Claim under Motor Insurance Policy -

Even though a car accident might be excruciatingly unpleasant, you should always make a claim before leaving the scene. So, the steps to take when filing a motor insurance claim are as follows:

Inform your auto insurance company as soon as possible about the collision because most insurance firms have a window of time within which they are required to submit accident information. Your claim could be rejected if you don’t follow the deadline.

Next, submit a FIR at the neighborhood police department. Following the filing of a FIR, the police will go to the scene of the accident, attempt to determine what caused it, and obtain a record of the driver and any other passengers who were in the car at the time. Please be aware that the FIR can only be prevented when you file a claim with your auto insurance company for dents and scratches.

It is crucial that you take images of the accident scene and your vehicle in order to document the collision. You’ll be able to settle your motor insurance claim more easily if you do this.

You can only file a motor vehicle insurance claim after you have given your insurer all necessary documentation. You must provide the insurance company with a number of important documents, including the ones listed below: First Information Report (FIR) submitted with the police station, a copy of the insurance contract, a copy of the driver’s license, and a copy of the vehicle registration document.

You must ask your insurance to send a surveyor as soon as possible to begin the inspection procedure after you have turned in the necessary paperwork. If you are submitting a cashless claim, the surveyor will determine the extent of the car’s damage and assist you in choosing a network garage.

The car repair can begin once the aforementioned stages have been finished. Based on the type of claim you select, the car will need to be repaired. The following are the two possibilities for resolving an automobile insurance claim:

You can easily bring the damaged vehicle to any of the partner garages recommended by the insurance provider in cashless claims. In the event of cashless vehicle insurance claims, the policyholder just has to pay the deductibles; the insurer will cover the remaining costs.

Policyholders are required to cover all costs associated with damages in the case of reimbursement claims out of their own pockets. The insurance provider must receive original copies of their bills, receipts, medical records, pictures, etc. After deducting all deductibles, the insurer will pay back all repair costs. The policyholder can have their selected mechanic fix the car by using the reimbursement claim option.

Things To Keep In Mind When Making A motor Insurance Claim -

While making a vehicle insurance claim, there are a few factors to keep in mind, some of which are given in the section below:

  • After an accident, inspect yourself and your vehicle to see if you or the insured vehicle have received any serious bodily injuries or property damage. You can request medical aid or any other assistance based on the severity of the damage or injury.
  • Do not put off filing the claim because doing so could lead to the later denial of your vehicle insurance claim.
  • Try to record the car number in the event of an accident caused by a collision with another vehicle for later verification.
  • When submitting a claim, avoid providing any false or inaccurate information because doing so will automatically lead in the rejection of your request.
  • Do not engage in any physical or verbal abuse if there is any harm done to a third party. In such circumstances, notify a police officer immediately.
  • Keep all the paperwork close at hand to ensure that filing an auto insurance claim with your insurer goes smoothly.
  • In addition to everything previously discussed, strive to maintain your composure and cool throughout the filing of a motor insurance claim as the procedure can occasionally become tiresome.

FAQs :-

One of the best types of motor insurance in India is comprehensive, which covers both third-party liability and damage to your own vehicle.

The type of coverage must be considered before choosing the motor insurance plan you wish to buy. Add-on Covers, Additional Discounts, Insured Declared Value, Claim Settlement Ratio, and Customer Reviews are additional variables used in car insurance comparison.

In order to prevent anyone from suffering a financial loss as a result of an accident, the government has made purchasing motor insurance compulsory. When they do, they ought to receive just compensation.

If you choose cashless claims, you won’t need to worry about finding the funds to cover the cost of the auto repair before waiting for your insurer to repay you. Instead, the insurance provider pays the network garage directly for the claim amount through cashless motor insurance online.

In the instance of reimbursement claims, policyholders shall pay all expenses related to damages out of their own funds.


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