Understanding Motor Insurance Better

When it comes to choosing a motor insurance policy your requirements are what makes the buying process easy or turn it into a cumbersome process. Going by the law, for getting the mandatory Third Party Liability (TPL), you can simply pick any specific TPL policy. But on the other hand, if you are looking out for a policy which covers most of the financial losses, then you must indulge into substantial amount of research before finalizing one. 

And for that, knowing and understanding the motor insurance policy in a better way is a pre-requisite.

Car insurance and two wheeler insurance are two classifications of Motor insurance. Be it a personal vehicle, commercial or even a vehicle used for recreational purpose, according to the law it must be insured.

Third Party Liability (TPL) is compulsory and those who do not have this are liable for penalties. On the other hand, comprehensive motor insurance covers TPL along with other financial losses which might be caused due to accidents etc.

Types of Motor Insurance

Third Party Liability (TPL)

As per Section 146 of Motor Vehicles Act 1988, third party insurance is a mandatory policy which is compulsory to have for any individual owning a vehicle. It covers the loss pertaining to the third party and not to you or for your own vehicle. In this policy the person who buys the policy who is insured, is the first party; the insurance company is the second party whereas the person who is affected during an accident by your car is the third party.

Own Damage Cover

It protects the insured against any financial losses pertaining to his/her vehicle. It can be claimed against the accidents as well as theft. Other damages which are covered under this policy include damages caused due to vandalism, burglary, terrorist attack, riots, and many more.

Personal Accident Cover

This simply safeguards the insured against the financial security when an accident is caused unfortunately which leads to permanent disability. And in the worst case if the policy holder dies the family of the person receives the monetary compensation.

Add-Ons

There are some other specified additional features which can also be added to the policies which include Zero Depreciation Cover, Garage Cash, Roadside Assistance and many others.