MOTOR INSURANCE-Do it now else hate yourself later!

What does Insurance really means?

It is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.       

Do my Vehicle need Insurance?

Travelling by vehicle is inevitable and a routine for most of us now. While they are essential for commuting, they also expose us to multiple risks – bodily as well as financial. 

Hence, security becomes a necessity in case of vehicle damage, loss of vehicle, 3rd party liability etc. 

A Motor Insurance safeguards your finances and gives you the desired coverage in the event of such incidents. 

A comprehensive Motor Insurance plans help you secure your vehicle from financial liabilities or loss of motor vehicle that you may face. 

In extreme situations, automobile owners may find themselves saddled with high financial liability if proper care is not taken. 

Is there any way out for automobile owners against such potential risks related to automobiles? 

Yes, the answer lies in availing Motor Insurance policy. 

Motor Insurance deals with the insurance covers for the loss or damage caused to the automobile or its parts due to natural and man-made calamities. 

It provides accident cover for individual owners of the vehicles while driving and also for passengers and third-party legal liability.

Types of Insurances:

There are many (you must have been called or mailed by agents or companies to get insurance), but stop, do you really know, which insurance is good for you or what alternatives are present in market. Let me tell you:

• Third Party Insurance

• Comprehensive Insurance

1. Third Party Insurance-

This insurance is mandatory by law. It protects a policy holder against losses which arise due to bodily injury/death to a third party or any damage to property. 

Here third party includes people travelling with you or whom the insured person injures and claims damages at the time of accident. 

But this insurance does not protect you, your vehicle and co-passengers against losses which arise due to bodily injury/death.

2. Comprehensive Insurance-

In addition to third party coverage, this policy covers you, your car and co-passengers against damages /losses arising from unforeseen calamities, hence it is prudent to purchase this policy.

Nature of Motor Insurance Policy:

Insuring your automobile by Motor insurance policy is mandatory for all vehicles under the provision of Motor Vehicles Act 1988, be it for commercial or personal use. 

It is compulsory to have a valid Motor insurance policy before you can start driving your vehicle. 

There are various types of Motor Insurances are available in the market depending upon the automobile be it Car, Bike or Commercial Vehicle.

Benefits of Motor Insurance:

The cover level of Motor insurance can be the insured party, the insured vehicle, third parties (car and people).

It acts as Financial Safety umbrella for the following costs that may occur in case of any mishappening:

• Bodily injuries caused to us or others
• Legal costs/cost of Lawsuits that may be brought against yourself in case of any accident
• Benefits to Legal Heirs when an accident results in death
• Repairs made to your car due to damage caused in an accident

Factors governing Premium Amount:

You must be thinking of the basis on which premium is calculated (may be because your pocket compels you to think so), so here are the few criteria based on which premium is calculated:

• Make and Model of the Vehicle
• Manufacturing Year
• Place of Registration
• Showroom price of the vehicle
• Whether Client is Individual or Corporate
• The principal insurance amount and its subsequent premium that also vary according to the price of the vehicle.

Legal Implications:

Don't fear legal field is to safeguard you and not to disrobe unless and until you are found in something very gross.

In case of any accident if you are in possession of valid Motor Insurance, then this Motor Insurance is there to prevent you from atleast finacial laibility. The benefits are-

• Setting of third party liability
• Setting of any other losses inuding injury, damages

If any body found driving without Motor Insurance then there is penalty provisions given in the law and there might be chances of seizure of vehicle too.

So, beware its always better to carry valid Motor Insurance with you.