We all want to have a private vehicle as it makes mobility much easier. Although it makes our life much easier to travel from one place to the other but people were not much into the thought of purchasing a car until the outbreak of COVID-19. Ever since the novel coronavirus started devastating the country, people considered the option of buying a car even more. Traveling in public transport can be quite risky and increases the chance of contracting the virus.
If you too are planning to purchase a car anytime soon, the brand, size, type, color of the car is not all that you need to consider. Along with these, you also need to pay heed to the kind of motor insurance that you have to take. According to the Motor Insurance Act 2019, whoever owns a vehicle has to buy motor insurance. A motor insurance policy is not just anything that has been imposed by the government; it provides several types of coverage. From damage caused due to an accident to theft, many things are covered under these policies. However, it all depends upon the kind of policy you are opting for. Let us discuss the types of motor insurance that are available in the country.
This is one of the most sought-after types of motor insurance as buying motor insurance for a car owner is mandatory. The majority of the car manufacturers tie-up with the top insurance companies so that they can provide fast insurance services to their customers. The car insurance provides coverage against damage of car by accident, riots, floods, fire, hurricane, earthquake, explosion, terrorist attacks, theft, and claims of the third party for their and their property’s damage. On paying an additional premium, you can also get coverage on loss or damage of electrical and electronic accessories and other important items in the car.
This is another very popular type of motor insurance in India. This type of insurance is governed by the Indian Motor Tariff. As you buy the insurance, you will get coverage on your two-wheeler against natural as well as man-made calamities which include fire, floods, landslides, rockslides, earthquakes, storms, hurricanes, theft, burglary, riots, etc. This also covers the damages that are caused because of vehicles in transit by road, rail, water, or airways.
Commercial vehicle insurance
This is a type of motor insurance that is meant for vehicle owners who use their vehicles as public transport or for commercial purposes. The types of vehicles that are covered under this type of motor insurance include heavy commercial vehicles, buses, trucks, light commercial vehicles, agricultural vehicles, multi-utility vehicles, ambulances, etc. The premium calculation for this insurance is different from the other types. The premium for this insurance is calculated on the basis of the make and model of the vehicle, year of manufacture, place of registration, the existing showroom price, and if the insurance company is individual or corporate.
Insurance companies collaborate with automobile manufacturing companies to figure out the several types of insurance plans that are easy and simple for the insurance companies as well as the customers.
You can visit the website of IIFL to come across some of the top insurance companies that provide various types of policies. You have to choose a policy depending on the type of vehicle you have. While doing so, you must compare the motor insurance policies with each other and take the call. Also, do not forget to go through the terms and conditions of the policies. This will help you to understand the kind of policy you are buying.