Motor Insurance Available

1. Third-Party Liability Insurance

• • Definition: This is the most basic and mandatory form of motor insurance as per the Indian Motor Vehicles Act, 1988.

• • Coverage: It covers any legal liability that may arise due to injury, death, or property damage to a third party in an accident involving your vehicle.

• • Exclusions: It does not cover damage to your own vehicle or personal injuries.

• • Key Features:
    • • Covers injury or death of a third party.
    • • Covers third-party property damage (limited up to a certain amount, generally ₹7.5 lakhs for four-wheelers).
    • • Does not offer any coverage for the insured vehicle’s damage.

2. Comprehensive Insurance

• • Definition: This is an all-inclusive insurance plan that offers coverage for both third-party liabilities and own damage.

• • Coverage:
    • • Third-party liability (injury, death, property damage).
    • • Own vehicle damage due to accidents, theft, fire, or natural calamities (like floods, earthquakes, etc.).
    • • Personal accident cover for the owner-driver (compensation in case of death or injury).

• • Key Features:
    • • Offers both third-party and own-damage protection.
    • • Includes theft, vandalism, and natural disasters.
    • • Customizable with add-ons like Zero Depreciation, Engine Protection, etc.

3. Standalone Own Damage Insurance

• • Definition: A relatively new type of insurance introduced following IRDAI guidelines in 2019. It covers only the damage to your own vehicle but not third-party liabilities.

• • Coverage: Similar to the own damage portion of a comprehensive policy but does not include third-party liability, which needs to be bought separately.

• • Key Features:
    • • Provides coverage for own vehicle damages due to accidents, fire, natural calamities, theft, etc.
    • • Needs to be paired with a third-party policy to comply with the law.

4. Pay-as-you-drive Insurance (Usage-Based Insurance)

• • Definition: A relatively new model that charges premiums based on the distance you drive.

• • Coverage: Similar to a comprehensive plan, but premiums are calculated based on the number of kilometers driven.

• • Key Features:
    • • More cost-effective for those who drive less.
    • • Track usage through a telematics device or app.

5. Commercial Vehicle Insurance

• • Definition: Insurance specifically designed for vehicles used for business purposes like taxis, buses, trucks, etc.

• • Coverage:
    • • Similar to third-party and comprehensive insurance but includes risks specific to commercial operations.
    • • Covers loss or damage to the commercial vehicle, third-party liability, and personal accident cover for the owner-driver.

• • Key Features:
    • • Tailored for vehicles used for commercial activities.
    • • May include coverage for goods carried in commercial trucks.

Add-Ons (Optional Riders)

In addition to the main motor insurance types, there are optional add-ons that can enhance coverage:

• • Zero Depreciation Cover: Ensures full claim settlement without depreciation deduction on parts.

• • Engine Protection Cover: Covers engine damage due to water ingress, oil leakage, etc.

• • No Claim Bonus (NCB) Protection: Protects your NCB even after a claim.

• • Roadside Assistance Cover: Provides emergency assistance like towing, minor repairs, fuel delivery, etc.

• • Return to Invoice Cover: In case of total loss or theft, this rider reimburses the full invoice value of the vehicle.

These are the main types of motor insurance available in India, catering to different needs and providing varying levels of protection.