What Motor Insurance to Buy - Policy Holder
- Why Buy Life Insurance
- What Life Insurance to Buy
- How to Buy Life insurance and From Whom
- You and Your Life Insurance Policy: FAQs
- Dos and Don'ts for Life Insurance
- General Advice for Life Insurance
- Why Buy Health Insurance
- What Health Insurance to Buy
- How to Buy Health Insurance and From Whom
- You and Your Health Insurance Policy: FAQs
- Dos and Don'ts for Health Insurance
- General Advice for Health Insurance
- Why Buy Motor Insurance
- What Motor Insurance to Buy
- How to Buy Motor Insurance and From Whom
- You and Your Motor Insurance Policy: FAQs
- Dos and Don'ts for Motor Insurance
- General Advice for Motor Insurance
- Why Buy Property Insurance
- What Property Insurance to Buy
- How to Buy Property Insurance and From Whom
- You and Your Property Insurance Policy: FAQs
- Dos and Don'ts for Property Insurance
- General Advice for Property Insurance
- Why Buy Travel Insurance
- What Travel Insurance to Buy
- How to Buy Travel Insurance and From Whom
- You and Your Travel Insurance Policy: FAQs
- Dos and Don'ts for Travel Insurance
- General Advice for Travel Insurance
What Motor Insurance to Buy
Types of Motor Insurance:
Broadly there are two types of insurances policies that offer motor insurance cover:
1. Liability Only Policy (Statutory requirement)
2. Package Policy (Liability Only Policy + Damage to owner’s Vehicle usually called O.D Cover
Remember that if you take only a Liability Only Policy, damage to your vehicle will not be covered. Hence, it would be prudent to take a Package Policy which would give a wider cover, including cover for your vehicle.
What Motor Insurance covers:
The damages to the vehicle due to the following perils are usually covered under OD section of the Motor Insurance policy:
1. Fire, Explosion, Self- Ignition, Lightning
2. Burglary/Housebreaking / Theft
3. Riot & Strike
4. Earthquake
5. Flood, Storm, Cyclone, Hurricane, tempest, inundation, hailstorm, frost
6. Accidental external means
7. Malicious Act
8. Terrorism acts
9. While in Transit by Rail/ Road, Inland waterways, Lift, Elevator or Air
10. Land slide / Rock slide
What Motor Insurance excludes:
The following contingencies are usually excluded under the Motor Insurance Policy:
1.Not having a valid Driving License
2. Under Influence of intoxicating liquor/ drugs
3. Accident taking place beyond Geographical limits
4. While Vehicle is used for unlawful purposes
5. Electrical/Mechanical Breakdowns.
Basis of Sum Insured:
For Own Damage:
The Sum Insured under a Motor Insurance policy reflects the value of the motor vehicle determined based on the concept known as Insured's Declared Value. Insured's Declared Value is the value arrived at based on the Manufacturer's present value and depreciation based on the Age of the Vehicle.
For Third Party:
Coverage is as per requirements of the Motor Vehicles Act, 1988 . Compulsory Personal accident cover for owner-driver is also included. Policy can also be extended to cover various other risks like Personal Accident to occupants of vehicle, Workmen's Compensation to Driver, etc over and above the cover available to him under statute