Motor insurance covers your asset against losses that you may arise in case your vejicle gets damaged or stolen. The premium amount of your motor insurance is decided on the basis of Insured Declared Value or IDV of the vehicle. If you increase the IDV, the premium rises and if you lower it, the premium reduces.

Benefits of Motor Insurance

Car insurance plan offers following benefits:

• Coverage against loss or damage to the insured vehicle.
• Coverage against loss or damage to your vehicle caused by accident, theft, fire, explosion, self ignition, lightning, riots, strikes or act of terrorism, natural calamities.
• Coverage against financial liability caused by injury/death of a third party or damage to the property.
• Personal accident cover.

Coverage under Car Insurance

There are primarily 3 types of car insurance -

• Third Party Liability Coverage
Third Party motor insurance provides cover against any legal liability to a third party caused when you are at-fault driver. It covers damage/injury caused by you to another person/property. A Third Party Liability cover is legally mandatory in India under the Motor Vehicles Act.

• Collision Coverage
Collision coverage protects the insured financially against damage of their own vehicle. It pays the insured for damage caused by collision which is usually an accident. Damage or loss due to theft or vandalism is not included in collision coverage.

• Comprehensive Coverage
A comprehensive coverage is extensive and includes damage of vehicle, theft of vehicle, third party legal liability and personal accident cover. The policy coverage can be further extended by opting for add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc. This type of coverage is the most popular as it offers end-to-end coverage and thus less stress for the policyholder.

• No Claim Bonus
For every claim free year, the insured is rewarded with discount on the renewal premium. This discount is called - No Claim Bonus (NCB). It is cumulative and increases every year. It usually ranges from 10% to 50% and can save a substantial amount of money on your premium.

• What is not covered in Car Insurance?
Following features are usually not covered in motor insurance:

• Loss or damage if a policy is not in force.
• Gradual wear and tear of car and its parts.
• Loss or damage to vehicle when driven by person without a valid driving license.
• Loss or damage to vehicle as a result of intoxication due to drugs, alcohol etc.
• Loss or damage to engine as a result of oil leakage.
• Loss or damage to vehicle as a result of abuse of manufacturer's guidelines.

• Eligibility/Documentation Requiredfor motor Insurance
Getting a vehicle insured requires minimal documentation. For a new policy, you must submit the filled up proposal form and copy of the Registration Certificate (RC). For renewals, you will need copy of the RC (Registration Certificate) along with the copy of previous insurance policy. Carefully fill in your complete details. This is an important step and will save you a lot of hassle during claim time.

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