What Is Motor Insurance and Why Do You Need It?

Understanding Motor Insurance

Also popularly known as vehicle insurance or auto insurance, motor insurance is an insurance policy that protects the policyholder from financial loss related to their motor vehicles. Generally, such financial losses include damages to the vehicle resulting from an accident, theft, vandalism, or a natural disaster.

Comprehensive motor insurance also protects policyholders from the financial loss they would have to bear if they were in an accident that caused bodily harm to others’ property. It also financially protects you if the other motor vehicle driver involved in the accident does not have an insurance policy or is underinsured.

The Need For A Good Motor Insurance Policy

In simple terms, a motor insurance policy protects the policyholder from any financial liability due to the vehicle they own. However, the need for having a good comprehensive motor insurance policy is not just limited to how it can secure you against the cost of repairs:

Financial Protection From Accidents

The first and most basic benefit of having a motor insurance policy is that it protects you from the financial loss that follows an accident. Many things can go wrong when a motor vehicle is involved in an accident. You can damage your vehicle, you might hurt yourself in the accident, and there may be other people involved who could get hurt or have their property damaged. The total of such damage and medical bills will be enough to burn a very deep hole in your pocket. But not with a motor insurance policy.

Coverage Against Theft And Natural Disasters

Sometimes, your car might suffer damage without even getting into an accident. It generally happens when someone tries to vandalise your car or steal it. Such damages can range from minor to major, costing anywhere from a few hundred to thousands of dollars in repair. Damages might also be sustained due to natural disasters beyond anyone’s control. The unfortunate part is that such damage can occur even when the utmost care is taken to ensure the safety and security of the vehicle.

Peace Of Mind With Roadside Assistance

Even the most well-maintained vehicles sometimes break down at odd hours. Suppose such a breakdown happens where mechanic services are easily available. In that case, it is still manageable, but if the breakdown occurs relatively far away, the driver and passengers will be left stunned. A comprehensive motor insurance policy that provides roadside assistance can easily avoid this situation. You will need to call your insurance company, provide your policy details, share your location, and describe the issue. With that, you will receive assistance, and the problem will be resolved.

Cashless Repairs And Quality Service

Another great benefit of having a comprehensive insurance policy is that you can enjoy cashless repairs and quality service for your vehicle. All you need to do is check with your insurance company about the approved and authorised dealerships where their insurance is valid and share the details of your insurance policy with the dealership before the repairs. Doing so will ensure that there is no confusion later on.

Legal Liability Coverage

According to Indian law, every vehicle owner and driver is required to have motor vehicle insurance at all times. It is because, once on the road with a vehicle, you are responsible for yourself and your property, as well as for others and their property. Non-compliance with the law results in small fines for first-time offenders, but can lead to heavy penalties, including jail time, vehicle impoundment, and even suspension of the driver’s license and vehicle registration certification.

FAQs

• What documents are required to purchase motor insurance?

To buy motor insurance, you’ll need your vehicle’s RC, a valid driving license, ID proof, and previous policy documents, if applicable.

• Can I transfer my motor insurance when I sell my car?

Yes, motor insurance can be transferred to the new owner by submitting a transfer request, along with the ownership documents, and paying a small fee.

• What is a No Claim Bonus (NCB) in motor insurance?

A No Claim Bonus is a discount on your premium for not filing any claims during the policy year, rewarding safe driving habits.

• What is IDV in a motor insurance policy?

Insured Declared Value (IDV) is the maximum claim amount your insurer pays in case of total vehicle loss or theft.

• Is engine protection covered in all motor insurance plans?

No, engine protection is not included in basic plans and is typically available only as an optional add-on for extra coverage.