Motor Insurance in India is mandatory by law. Any vehicle running in public place has to be insured against third party losses i.e. Death, Injury and Property Damage.
It can be classified into four broad categories according to the use of the vehicles
Car Insurance
This type of insurance covers cars for personal use.
This type of motor insurance is meant for two wheelers.
This type of insurance covers vehicles used for hire and reward - both for goods carrying and passengers. Example: buses, trucks, tractors, taxi cars and ambulances not used for personal use.
Vehicles used for miscellaneous purposes are also covered as ‘commercial vehicles’.
Example: ambulances, agriculture tractors, mining equipment, etc.
- Act only to cover the Third Party Liability as per Motor Vehicle Act
- Act only and fire and/ or theft
- Comprehensive
- Loss or damage to the insured vehicle
- Compensate against Death or injury to the third party and or damages to the property of third party arising out of the use of the insured vehicle
- Wear and tear due to normal ageing of the vehicle
- Damage done to or by the person driving without a valid and effective license
- Damage done to or by a person driving under the influence of alcohol or any other prohibited narcotics
- Loss or damage by war
- Mechanical or electrical breakdown
All vehicles have to be insured at a fixed value known as Insured Declared Value or IDV. It is calculated on the vehicle’s present invoice price less depreciation as per the schedule given in the Indian Motor Tariff.
Contact Us before the next insurance due date and get competitive quotes (across insurers) for your motor insurance policy.