Motor insurance is an insurance policy that covers the policyholder in case of financial losses – resulting from an accident or other damages – sustained by the insured vehicle. A comprehensive motor insurance policy covers damages to third-party and third-party property along with compensating for own losses as well.

Types of Motor Insurance

  1. Private Car Insurance
  2. Two-wheeler Insurance
  3. Commercial Vehicle Insurance.

Types of Cover

  1. Comprehensive Damage Insurance
  2. Third Party Liability Insurance

Mandatory Insurance

In India, as per the Motor Vehicles Act, it is mandatory that all vehicles that operate in any public space must have a motor vehicle insurance cover. Policyholders must have at least “Third Party Liability” motor insurance cover even when opting for the basic insurance plans.

Important Facts About Motor Insurance

  1. Motor Insurance is a social security insurance instrument.
  2. Motor Insurance attaches NCB ( No Claim Bonus) to insured with no claim experience during policy period.
  3. NCB Stays with insured person and not with the vehicle.
  4. Motor Insurance Policy can be ported to any insurance company on completion of policy period.
  5. Motor Insurance equipped with Third Party Insurance Coverage which protect insured and Third parties against any property damage by insured vehicle