All You Need To Know About Car Insurance Policies in India
Over the years, there has been a rise in the auto insurance sector of India. With the purchasing power and changing lifestyle of people witnessing a major change, people these days are eligible to buy luxury items which have become a part of their basic necessities.
All your vehicles need to be taken care of, be it two wheeler or four wheeler- every type of vehicle requires to be protected from any kind of damage or uncertainties. Motor insurance is a type of general insurance policy which is availed for cars, trucks, motorcycles, and other road vehicles. The premium for car insurance is based on the basis of insured declared value or IDV of the vehicle. One can calculate the amount of the premium using the car insurance calculator.
Here are several benefits of having a car insurance policy in India:
Ø Provides coverage against loss or damage to the insured’s vehicle.
Ø Provides coverage against loss or damage caused to the vehicle due to accident, theft, fire explosion, or acts of terrorism.
Ø Personal accident cover.
Ø Coverage against financial liability caused by death/ injury of a third party or damage to the property.
Ø Policy can be issued online.
Ø Accidental cover facility for co-passengers.
Ø Provides zero deprecation cover.
Ø Cashless servicing facility over a network of garages.
Under Section 146 of the Motor Vehicles Act, 1988, it is mandatory to have a motor insurance policy to provide coverage to third party.
There are two type of motor insurance policies:
Liability only: This type of policy provides cover to third parties who is/are injured by the insured’s vehicle.
Comprehensive policy: This type of policy provides cover to the insured’s vehicle and the insured.
Some of the top motor insurance companies in India are ICICI Lombard and Oriental insurance limited.