Ever wondered what is motor insurance? It is mandatory under Indian laws if you own a motor vehicle. Motor insurance helps you meet any unexpected expenses that may arise if your vehicle meets with an accident. It can also monetarily assist you in case of bike/car theft. Like other insurance policies, a motor insurance policy functions as a risk-mitigating tool. It protects you from creating a massive dent in your finances when you face an emergency. Read on to learn more about motor insurance.
Meaning of motor insurance
Motor insurance is a unique insurance policy meant for vehicle owners to protect them from incurring any financial losses that may arise due to damage or theft of the vehicle. Whether you have a private car, a commercial vehicle, or a two-wheeler, you can purchase a motor insurance policy
You will come across three different types of insurance policies in the market that provides coverage for motor vehicles:
● Third-party insurance policy: Obtaining this insurance policy is a statutory requirement. Without this policy, it is illegal to drive your motor vehicle in India. The chief objective of this policy is to provide coverage for any injury caused to a third party by your vehicle. Therefore, in case of an injury or death of a third party, the third party can raise a claim under such a policy and receive the insured amount.
● Own-damage insurance policy: In case of any damage to your vehicle due to fire or rain, or theft, you can raise a claim under this policy to compensate you for the expenses incurred for repairing your vehicle.
● Comprehensive insurance policy: This type of insurance policy provides you the best of both worlds as it provides both third-party cover and own damage cover. Even if your car gets stolen, you can file a claim under such a policy and get compensated. Typically, most policyholders prefer purchasing a comprehensive insurance policy and also take on various add-on covers such as zero depreciation cover, personal accident cover, etc., to make it more useful.
Bear in mind that you cannot raise any claim under any type of motor insurance policy, if:
● You were driving your vehicle without a valid driving licence
● You were driving the vehicle under the influence of drugs or alcohol
● You were using the vehicle for any unlawful activity
When to buy a motor insurance policy
If you want to purchase a new vehicle, you should start shopping for a motor insurance policy as soon as you can. It makes little sense to wait right till the end, as finding the perfect policy that suits your needs can take a while. The sooner you begin, the more options you will have to choose from. It is also advisable not to purchase the first policy you come across. Do your research and obtain all the motor insurance details that you can from various sources. You can also ask your friends and family to recommend a few insurance companies you should look at.You can either purchase the policy directly from an insurance provider’s website or browse through the website of insurance aggregators. Make sure to compare various policies and premium amounts. Pay extra attention to the exclusions and check out online reviews about the claim process. You don’t want to end up with an insurance provider whose claim process is a nightmare.
Also, keep in mind that you will need to provide complete details of your vehicle before completing the purchase process. But make sure to have all the motor insurance information handy so that you can sign the documents as you as your purchase the car.
Benefits of Buying Motor insurance with SBI General InsuranceIf you are in the market for a new motor insurance policy, there are a host of reasons for choosing SBI General Insurance as your insurance provider:
● You can enjoy a customised pricing option based on your profile
● If you are between the age of 25 and 55 years, you can enjoy discounts on the premium amount
● Seven days a week claim support for a hassle-free claim process
● 16,000+ network garages across the country
● Cashless claims facility if you repair the vehicle in any of the 1500+ authorised garages in the country
● Get a no-claim bonus at the time of renewal if you don’t file for a claim during the duration of the policy
Now that you are armed with these motor insurance tips, it is time to start your research and purchase a suitable car insurance policy that will provide you peace of mind.
Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.