Importance of Bike insurance and car insurance

Bike and car insurance important aspects

Your vehicle is one of the most valuable assets in your life. Thus, it deserves the best care and protection. Motor insurance is designed to protect you, as a vehicle owner, from the liability of third parties as well as damages caused to your vehicle.

In India, auto insurance is available in two types of coverage:

Fully Comprehensive Package Policy: Package policies cover both third-party liability and own damages. Own Damage Insurance protects the owner of the vehicle from financial loss arising out of loss or damage to the vehicle due to fire, accident, flood, landslide, theft, malicious damage, riots and other such perils.

Third-Party Liability Cover: Here, the motor insurance policy only covers financial liabilities arising out of third-party damage, injury or death. It does not cover 'own damage', injury to owner-driver or theft of the insured vehicle.

Motor insurance also has a personal accident component.

Personal accident cover along with vehicle insurance covers only the owner-driver.

The in-built personal accident cover of ₹15 lakh along with their auto insurance plans is offered by leading insurance companies of India.

You can buy a separate personal accident cover for other people (family members) who can drive your vehicle.

Benefits of third party liability insurance

As per the Motor Vehicles Act, all vehicles plying on public roads must have third-party liability insurance.

It protects the owner from any liability arising out of death, injury or property damage to third parties.

Which policy is the best and why?

However, a completely comprehensive package policy for your vehicle is recommended as it ensures all-round coverage for any incident that may happen.

There are different policies for different classes of vehicles:

1. Two wheeler policy for motorcycles, scooters and mopeds not used for commercial purposes.

2. Private car insurance policy for vehicles owned by individuals or other entities whose use is not  for commercial use such as for hire and reward.

3. The commercial vehicle policy is used to protect goods-carrying vehicles, taxis, buses and all other types of vehicles.

What is not covered under a vehicle insurance policy?

  • Claims arising out of contractual obligation
  • vehicle breakdown
  • Any loss or damage caused by nuclear threats or war
  • If the vehicle is used outside a specified geographical area
  • serious damage
  • If your vehicle is driven by a driver who does not have a valid license 
  • Mechanical and electrical breakdown


How to file a claim under Vehicle Insurance?

If you have a vehicle insurance policy, you need to ensure that a claim is filed immediately in case your vehicle is damaged or an accident occurs. The procedure for filing a claim varies according to the circumstances that led to the damage.

Following are the three major situations in which you can file a vehicle insurance claim. In case of own damage claim please follow the following steps:

Inform the insurance company by calling their customer care number or otherwise and report the claim

Submit the claim form duly filled and signed (by the insured only) along with copies of registration certificate and driving license

Get help from an insurance company in finding a suitable garage to repair your vehicle

Do not begin repairing or dismantling the vehicle until it has been inspected by the insurance company (or a representative) and the type of disposal has been finalized.

Other documents like FIR copy etc can be requested by the company.

 *Disclaimer: All information has been provided with utmost care. If still any error is found pls use it at your own discretion. 

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