What Are the Types of Motor Insurance Plans Available?

 Vehicle insurance is a crucial financial protection tool. Due to the country’s rising accident rate and tight government rules, you must purchase proper automobile insurance.

How To Choose Appropriate Motor Insurance Coverage:

Plans for auto insurance are divided into distinct categories based on the scope of coverage provided and the type of vehicle for which coverage is requested.

1. Amount of insurance coverage:

Motor insurance plans are based on coverage. The complete automobile insurance coverage covers owner-driver personal accidents. *

• 3rd party motor insurance:
  • Basic auto insurance is the most economical. Act-only or liability-only insurance describes this plan. This insurance is required under the Motor Vehicles Act of 1988. Driving without third-party liability insurance is a crime.
  • This insurance covers third-party injuries/unfortunate events and property damage from covered vehicle accidents.
  • Motor insurance third-party liability does not include own-damage coverage for the insured vehicle or owner-driver.
  • Several insurance companies cover owner-driver vehicle accidents in addition to third-party liabilities.
  • Third-party property damage compensation is capped at Rs.7.5 lakh. The court sets the claim amount.

• Comprehensive auto insurance: Commonly referred to as a package policy by some insurers, this plan provides more extensive insurance protection, including third-party liability and own-damage coverage. *
  The complete auto insurance plan’s coverage is stated in full below:

2. Third-party liability coverage:

This all-inclusive auto insurance policy section shields the policyholder against legal liability to a vehicle insurance third party for accidental injuries/passing away or property damage. This insurance’s injury/passing away coverage is unlimited. The coverage maximum for third-party property damage is looked into case by case. The court decides property damage claim payouts. *

• Automobile insurance riders:

Most auto insurance companies provide additional coverage choices to the main policy in addition to comprehensive and third-party liability insurance. These riders cost extra from the same insurer. These add-ons include:

• Zero depreciation coverage: This auto insurance add-on lowers claims. Zero-depreciation coverage is called bumper-to-bumper. Consider full-coverage auto insurance. You’re responsible for excesses and depreciation. Auto part depreciation is covered by a comprehensive motor insurance policy with 0% depreciation. *
  • Coverage for engine damage: Comprehensive auto insurance does not cover mechanical or electrical engine damage. In flood-prone areas, an engine protection cover is essential. *
  • Return to Invoice (RTI) coverage protects your car against total loss expenditures. A total loss situation, such as car theft, gives you the vehicle’s actual invoice value sans depreciation for age. *
  • Loss of personal possessions: This add-on insurance plan covers the loss of valuable electronic equipment, computers, etc., kept in the insured car. *
  • No Claim Bonus (NCB) is a big bonus granted by insurers to drivers who do not file a claim during the policy year. If your auto insurance includes an NCB protection cover, you can retain this bonus even after filing a claim. *
  • Personal accident coverage for passengers: This rider can be added to a comprehensive auto insurance policy to protect the passengers. *
  • Critical replacement coverage: With this coverage, the insurance carrier reimburses the expense of replacing lost or misplaced vehicle keys. *
  • Roadside assistance coverage: This additional coverage protects the policyholder 24 hours a day, 7 days a week against situations such as a flat tyre, gasoline depletion, the need for expert inspection, etc. *
  • Consumables encompass -Consumables are automobile parts like nuts and bolts, screen washers, engine oil, etc. During claim time, the insurance company does not cover certain components. Consumables are covered if this rider was added to your vehicle insurance. *
  • Day allowance cover: This optional coverage reimburses the cost of renting a replacement vehicle while the insured vehicle is undergoing repairs at a garage. *

In conclusion, India offers many sorts of auto insurance. You must determine your insurance needs and choose a policy.

* Standard T&C Apply

‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘