Types of Vehicle Insurance

Types of Vehicle Insurance

When you talk to an agent about getting vehicle insurance, he advises you to get Comprehensive Insurance.  If your vehicle is caught somewhere then it is mandatory to show its Third Party Insurance.  Otherwise you can be fined or even sent to jail.  If any new insurance facility is to be added with insurance, it is advised to add Add On insurance.

Hearing the name of these different types of vehicle insurance, this question must have arisen in your mind that, what kind of vehicle insurance is there or how many types of vehicle insurance are there?  How many types of vehicle insurance in Hindi?  In this article we will answer this question.  Along with this, we will also share some other useful information related to vehicle insurance.

Types of Vehicle Insurance

According to the insurance cover you get, there are two types of vehicle insurance-

1. Third Party Insurance Policy: The damage caused by your vehicle to any other vehicle, person or property is compensated through Third-party insurance policy.  Following such incidents, it is also the responsibility of the insurance company to deal with the legal process that will take place to determine the compensation.

  • Along with third party insurance, you also get Compulsory Personal Accident Insurance (Compulsory Personal Accident Insurance) of 15 lakhs.  This gives compensation up to Rs 15 lakh in case of death or permanent disability of the vehicle owner.
  • But keep in mind, the third party insurance policy does not cover the damages caused to your own vehicle.  For this, you have to take Own Damage Cover, which is available only after taking Comprehensive Motor Insurance Policy. 

2. Comprehensive Motor Insurance Policy: It is also called a complete insurance policy.  In this, the insurance company not only compensates for the damage caused by your vehicle to any other vehicle, person and property, the insurance company also compensates for the damage caused to your own vehicle.  That is, you get the benefit of both Third Party Insurance and Own Damage Cover from Comprehensive Motor Insurance Policy.

3. Add On Insurance: By taking comprehensive insurance, you get the facility to add many types of Add On Covers (Ancillary Insurance Policies).  The kind of add on insurance that you will add to your main insurance policy, you get the benefit of that kind of additional insurance cover separately.  But, keep in mind that the premium for each add-on policy also adds up separately, making your insurance policy equally expensive.  The names of some of the major types of addon insurance are as follows-

  • Zero Depreciation Cover: Even if the vehicle is old, to meet its insurance claim
  • No Claim Bonus Protection Cover: To reduce the insurance charges if there is no claim during the policy
  • Engine Protection Cover: In case of damage to the engine, also to get compensation for the same
  • Roadside Assistance Cover: To get help at the scene after an accident
  • Passenger Cover: To get compensation in case of damage to the passengers present in the vehicle
  • Return to Invoice Cover: In case of an accident, to get the price equal to the price recorded in the receipt of the vehicle

Types of insurance as per vehicle category

According to the category of the vehicle, there are three types of vehicle insurance.

1. Car Insurance
2. Two Wheeler Insurance
3. Commercial Vehicle Insurance
Car Insurance

By getting car insurance, in the event of an accident, the facility of compensation for the damage caused to the vehicle is available.  Even in the event of natural calamities or man-made calamities, compensation for damage to the vehicle is also covered under this insurance.  Many companies have now started providing medical insurance as a part of the same, along with car insurance.

Car insurance is also responsible for settling legal liabilities on the damage caused to another person or property (third party) in the event of an accident caused by your vehicle.  The vehicle driver is also entitled to get the benefit of this third party liability.  Not only this, there is an option to take coverage for co-passengers as well.  However, the higher the coverage, the higher the premium of the policy.

Two Wheeler Insurance

Under two wheeler insurance also, along with third party liability, the facility is given to compensate for the damage done to your own vehicle.  Apart from road accidents, this type of insurance also provides protection against natural and man-made calamity.  Generally this insurance is for one year.

The facility of long-term two wheeler insurance (LTTW) has also been started by the Insurance Regulatory and Development Authority of India (IRDAI insurance regulatory and development authority of India).  Can get vehicle insurance for.

It is mandatory for insurance companies to provide personal accident cover of Rs 1 lakh along with two wheeler insurance.  You can also take insurance for riders by increasing the premium.

Commercial Vehicle Insurance

All vehicles used for commercial purposes, such as buses, trucks, ambulances, loaders, canters, multi utility vehicles, agricultural vehicles, etc.  They are insured under commercial vehicle insurance.  Commercial vehicle insurance also provides protection against damages caused in the event of an accident or disaster.

In the event of a road accident, in addition to compensating for damage to another person or property (Third Party), the facility of claims for death or bodily injury (death / injury) are also part of this type of insurance policy.

The make and model of the commercial vehicle, as well as the place of registration, year of manufacture, ex-showroom price, etc., are taken into account while determining the premium for the insurance policy.  And also whether the insurer is an individual or a company.

Why motor insurance is necessary?

Even if you drive very efficiently, even if you do not need to take the vehicle on crowded roads, it is always a good deal to have vehicle insurance.  By having vehicle insurance, you are saved from these many difficulties-

1. To compensate for damage to another person, vehicle or property

According to the Motor Vehicle Act applicable in India, it is mandatory for every vehicle to have third party liability insurance.  In the event of an accident, the damages caused by your vehicle to any other person (third party) are settled through third party insurance only.  This damage can also be in the form of permanent injury or death.  Whose compensation can be in lakhs or even in crores.  Damage caused to the property of another person is also covered under this third party liability insurance.

Even under normal circumstances, if you have not got third party insurance for your vehicle, then if caught, there can be a fine of up to Rs 2000 or a jail term of 3 months.  Even both the punishments can be given together.

2. To compensate for the damage caused to own vehicle

In case of an accident, First Party Motor Insurance covers the cost of repairing the damages caused to your vehicle.  Due to this, not only you are safe from sudden financial crisis, but also you are free from the hassles of repairing.  Now many companies (especially car companies) have also started providing the facility of roadside assistance.  In this, you are helped on the spot (at the place of accident).

3. Compensation for loss due to natural calamity or other such event

Having vehicle insurance also helps you against damages caused by natural calamities or human calamities.

Types of Incidents Covered: Such contingencies include road accident, car fire, natural calamity such as earthquake, landslide, flood, typhoon  – Storm-hurricane, lightning etc. are included.  Similarly man-made disasters include fire, riots, terrorist attacks, explosions, theft etc.

Looking at all these facts, it can be said that getting Motor Insurance is a sensible deal in every way.

Be Cautious When Opting

Often people choose an insurance policy by looking at the low amount of premium (paying money) for vehicle insurance.  But it may be that by offering cheap plans, it is giving you very little convenience in terms of coverage.  May be, some premium looks expensive, but zero depreciation add on is also available with it.

In fact, it is important to keep three things in mind while choosing an insurance policy.

1. How is the credit of the insurance company in the market?  (Accessibility and speed of service makes a difference)
2. What and how much coverage is she giving you?  (for himself as well as for third parties)
3. What is the quantum of premium to be paid by you?  (She is not charging much by giving little facility)

Keeping all the three facts in mind, you can choose the best option.

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