Motor insurance is one of the few compulsory forms of insurance in India. Motor insurance broadly covers two-wheelers like scooters and motorbikes, three-wheelers or four wheelers for private use and commercial vehicles.
This is one of the fastest growing segments in the insurance sectors. Most car manufacturers have tie-ups with leading insurance companies to provide quick insurance to its customers. Apart from being a legal compulsion, car insurance enables you to safeguard against loss or damage to your car due to an accident, theft, fire, earthquake, floods, strike, riots etc. On payment of appropriate additional premium, it covers loss or damage to electrical or electronic accessories and other significant items.
Two-wheeler insurance is another fast-growing segment in the insurance sector. It is mandatory to take insurance for your two-wheeler. This insurance provides protection against natural and man-made calamities including fire, rockslide, landslide, storm, hurricane, flood, earthquake, burglary, theft, riots or any damage caused to the vehicle in transit by road, air, inland waterway or rail. Two-wheeler insurance provides mandatory personal accident cover of Rs.1 lakh to the insurer. This accident cover can also be chosen for passengers. It also protects against legal liabilities arising due to third party injury/death or damage caused to its property.
Commercial Vehicle Insurance
This type of insurance covers all vehicles which are not used for the personal purpose including trucks, buses, heavy commercial vehicles, light commercial vehicles, multi-utility vehicles, agricultural vehicles, ambulances etc. It covers loss or damage by accident, fire, lightning, riots, earthquake, hurricane, terrorist attacks, explosion, theft, third party claims and damages (like a liability for third party injury or death, third party property and liability to paid driver). The premium is calculated on the basis of the make and model of the commercial vehicle, place of registration, year of manufacture, current showroom price and whether the insurer is individual or corporate. Most vehicle manufacturers have tie-ups with leading insurance companies to provide different kinds of easy and comprehensive plans for safe and easy insurance policies.