Motor Vehicle Insurance

Motor Vehicle Insurance

Motor Vehicle Insurance is an Insurance policy that covers the policyholder from the financial losses resulting from an accident or any other damages sustained by the insured vehicle. Motor Vehicle Insurance is also called Automotive Insurance.

The primary use of the Motor Vehicle Insurance is to provide financial protection against the physical damages or bodily injury resulting from traffic collisions and against any liability that also arise from incidents in a vehicle. Motor Insurance is related to the all types of the motor vehicles like motorcycles, jeeps, cars, commercial vehicle etc.

Motor Vehicle Insurance Policy covers the following:-

  • Damages happen from human intervention including theft, riots, strike, burglary or any other activity born of malicious intent.
  • Losses and damages happen by natural calamities like floods, fire, earthquake, lighting, hurricane, landslide etc.
  • Any third- party legal liabilities owing to both damages bodily injured or death caused to third-party as well as financial losses to a third-party property.

Motor Vehicle Insurance is mandatory According to sec 146 of the Motor Vehicles Act, 1988. It is important that you purchase a motor insurance before taking your vehicle out on the roads. It has been mandatory by the government because for your safety and the safety of other people.

Types of Motor Vehicle Insurance

Travelling through two-wheeler and car has become an inseparable part of life now a days but travel on the road comes with its own hare of risks. So for protection from risk, you should have to take a motor insurance policy. Motor Vehicle Insurance Policy can be availed in three forms which are as follows:-

  • Private Car Motor Insurance Policy

Private car Motor Insurance Policy is a motor insurance that needs to be taken for any private car owned by any individual and is mandatory by the Indian government. This Insurance Policy covers the vehicle for damages against fire, accidents, natural disasters, theft among others and also covers the injury to the owner of the vehicle. This Insurance also covers the any damages and injuries caused to the third-party.


  • Commercial Vehicle Insurance Policy

Commercial Vehicle Insurance Policy covers all the vehicles that are not used for personal use or purpose. The Vehicles that covered under this policy are:- Buses, Trucks, Heavy Commercial Vehicles, Light Commercial vehicles, Taxi/Cab, Ambulances, Auto-rickshaw, Multi-utility vehicles, Agricultural vehicles etc.

  • Two-Wheeler Insurance Policy

Two-Wheeler Insurance Policy covers the two-wheeler like a bike or a scooter and it is mandated by the Indian government. The two-wheeler is covered against from damages, disasters, theft, fire etc. as well as any damages and injuries to the third-party. This Insurance policy also offers a mandatory personal accident cover for the owner rider of the vehicle and can be taken for passengers too.

Buying a Motor Vehicle Insurance policy

Purchasing or buying a motor vehicle insurance policy can be tricky when we are unable to choose right insurer or right cover. You all should have to follow some steps when buying a motor insurance policy:-

  • Understand and assess the type of insurance policy and decide the amount of cover you would require.
  • Compare the policy from the quotes and choose suitable policy for yourself.
  • Look for some discounts
  • Any Add-ons, if you want
  • Then Buy that Insurance Policy

Formalities for a Motor Vehicle Insurance Claim

Claim under a Motor Vehicle Insurance Policy could be:-

  • For Property damage or any Personal injury by vehicle related to someone else. This person is called a third-party and this type of insurance claim is called third-party claim.
  • Damage related to your own, insured person. This is called the Own damage claim and you are eligible for this claim if you are holding what is known as a comprehensive policy.