Motor Insurance Guide - All You Need to Know

Motor insurance is not just a legal requirement in India but also an essential safeguard for you and your vehicle. Whether you own a bike, car or commercial vehicle, understanding motor insurance helps you make informed decisions and avoid financial setbacks in case of accidents or theft.

1. Third-Party Insurance

  • Legally mandatory

  • Covers damage to third-party property, vehicle, or injury/death of a third person

  • Does not cover your own vehicle's damage

Types of Motor Insurance in India

2. Comprehensive Insurance

  • Covers both third-party liability and own vehicle damage

  • Includes protection against theft, fire, natural disasters, man-made calamities, etc.

  • Can be enhanced with add-ons

3. Own-Damage (OD) Insurance

  • For vehicles purchased after Sep 1, 2018 (when separate own-damage policy was introduced).

  • Covers only your vehicle's damages

Coverage Under Comprehensive Insurance

Accidental damage

Theft or burglary

Fire, explosion, lightning

Natural disasters

Man-made disasters

Personal Accident Cover for Owner- Driver

Third-party liability

Why is Motor Insurance Mandatory in India?

According to the Motor Vehicles Act, 1988, having at least third-party insurance is compulsory. It ensures that victims of road accidents are financially compensated, and it reduces legal complications for vehicle owners.

How to Choose the Right Policy?

  • Evaluate usage - Daily city commute or long highway drives?

  • Check vehicle age & value

  • Compare premium vs coverage

  • Look for required add-ons

  • Choose trusted insurers with good claim settlement ratio

Add-On Covers to Enhance Protection

Zero Depreciation Cover - Get full claim without deduction for depreciation

Engine Protection Cover - Covers engine damage due to water ingress or oil leakage

NCB Protection - Protect your No Claim Bonus even after making a claim

Return to Invoice - Get the full invoice amount (including registration & taxes) in case of total loss

Roadside Assistance - Emergency towing, battery jump-start, flat tyre help, etc.

What's Not Covered (Exclusions)

  • Driving without a valid license

  • Driving under the influence of alcohol or drugs

  • Mechanical or electrical breakdown

  • Regular wear and tear

  • Damage outside geographical limits (unless add-on taken)

Conclusion

Motor insurance is not an expense - it's an investment in peace of mind. Choosing the right policy can save you from unexpected financial burdens. Whether it's third-party or comprehensive, make sure your vehicle is protected at all times.

Need Help?

Our experts at LeadGenPro are just a click away.

We help you compare, understand, and choose the best motor insurance policy - for any vehicle type.