Vehicle Insurance
Vehicle insurance is just like any other insurance policy, but unlike other insurances, it is a must. As the name suggests, it is an insurance that is related to all types of motor vehicles-motorcycles, cars, jeeps, commercial vehicles etc. Vehicle insurance has been made mandatory by the government for your safety and the safety of others. The yearly premium you pay is just a meagre sum when compared to the advantages it has to offer you in case of, god forbid, any mishappening.
Vehicle insurance is not just about the vehicle but can be classified on two things that is, the type of vehicle for which you are taking insurance, the amount of coverage that you want to cover your vehicle for.
Types of Vehicle insurance are:
Private car Insurance Policy
A private vehicle insurance is one that needs to be taken for any private car owned by an individual and is mandated by the Government of India. It covers the vehicle for damages against accidents, fire, natural disasters, theft among others, and also covers for any injury to the owner. It also covers any damages and injuries caused to the third party.
Two-Wheeler Insurance Policy
The two-wheeler insurance policy covers two wheelers like a scooter or a bike and is mandated by the Government of India. The two-wheeler is covered against damages from accidents, disasters, fire, theft, etc. as well as any damages and injuries to the third party. It also offers a mandatory personal accident cover for the owner rider and can be taken for passengers too.
Commercial Vehicle Insurance Policy
A commercial insurance covers all vehicles that are not used for personal use. This type of insurance covers all those vehicles which are not used for personal purpose. Some vehicles that are covered under this insurance are trucks buses, heavy commercial vehicles, light commercial vehicles, multi-utility vehicles, agricultural vehicles, cabs or taxi, ambulances, auto rickshaw etc.
Types of Vehicle insurance policies in India are:
Third-Party
Third-party insurance is one of the most common types of vehicle insurance; in which only damages & losses caused to a third-party person, vehicle or property are covered.
Comprehensive
Comprehensive insurance is one of the most valuable types of vehicle insurance that covers both third-party liabilities and damages to your own vehicle as well.
Benefits of Vehicle insurance are:
All the states in India require a minimum amount of insurance. Car insurance can help offset the loss of huge sum in the following manner:
- It provides benefits to survivors when an accident results in death.
- It covers lawsuits, including legal fees brought against you as the result of an accident.
- It covers the bills of vehicle repairs due to damage caused in an accident.
- Also covers damage caused by other than an accident for example, theft, fire, etc.
- Additional discounts:Car insurance policies allow premium discounts for theft or for owning more than one policy with the same insurer. It also provides added advantage to extend coverage to others driving your car with your permission.
- No Claim Bonus:If you do not make a claim during the policy period, a No claim bonus is offered on renewals provided you fulfil certain terms and conditions.
