What Is A Motor Vehicle Insurance Policy?
A motor vehicle insurance policy is a type of insurance policy that provides coverage for damages or losses related to a motor vehicle.
In India, motor vehicle insurance is mandatory for all vehicle owners, as per the Motor Vehicles Act, of 1988. The purpose of this law is to provide financial protection to the vehicle owner in case of any accident or damage caused to the vehicle or any third party. In this blog, we will discuss the legal conditions around motor vehicle insurance in India.
Types of Motor Vehicle Insurance in India:
There are two types of motor vehicle insurance in India, namely third-party liability insurance and comprehensive insurance.
- Third-party liability insurance: This type of insurance covers the damages or injuries caused to a third party, i.e. any person or property other than the insured or the insurer. All vehicle owners must have third-party liability insurance.
- Comprehensive insurance: This type of insurance covers the damages or injuries caused to the insured vehicle as well as to the third party. It also covers theft and other damages caused by natural calamities such as floods, earthquakes, etc. It is not mandatory, but it is recommended to have comprehensive insurance for the vehicle.
Legal Conditions Around Motor Vehicle Insurance:
- Mandatory insurance: As mentioned earlier, all vehicle owners must have third-party liability insurance. If you are caught driving without insurance, you could be fined or even imprisoned.
- Insurance policy documents: The insurance policy documents must be carried by the vehicle owner or the driver at all times. It should be produced by the traffic police or any other concerned authority whenever asked.
- Claim process: In case of any damage or accident, the vehicle owner should inform the insurer immediately. The insurer will appoint a surveyor to inspect the damages and process the claim. The vehicle owner must also file a First Information Report (FIR) with the police in case of theft or any major accident.
- No-claim bonus: If the vehicle owner does not make any claims during the policy period, the insurer offers a discount on the premium for the next policy period. This is known as the no-claim bonus.
- Renewal of insurance: The insurance policy must be renewed before the expiry date to ensure continuous coverage. If the policy expires, the vehicle owner will have to pay the penalty to renew it.
- Insured declared value (IDV): The IDV is the maximum amount that the insurer will pay in case of a total loss of the vehicle or theft. It is calculated based on the current market value of the vehicle.
- Add-ons: Insurers offer add-ons to enhance the coverage of the policy. These include cover for personal accidents, roadside assistance, engine protection, etc.
Chola Car Insurance Offers Motor Insurance Add-on Coverage
- 0% depreciation cover
- Enclosure for Consumables
- Loss of key cover
- Hydrostatic Lock Cover
Conclusion:
Motor vehicle insurance is a crucial aspect of owning a vehicle in India. It provides financial protection to the vehicle owner in case of any accidents or damages. It is mandatory to have third-party liability insurance, and it is recommended to have comprehensive insurance for better coverage. The vehicle owner should ensure that the insurance policy is renewed on time and should carry the policy documents at all times. Additionally, Chola Car Insurance guarantees trust, continuous client service, effortless claims procedure, and a vast array of garages. For a simple & easy process for your insurance, check out Chola MS car insurance.
