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.
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