WHAT ARE THE TYPES OF VEHICLE INSURANCE? 2022
Third Party Insurance Policy: The damage caused by your vehicle to any other vehicle, person or property is compensated through third-party insurance policy. In the aftermath of such incidents, it is also the responsibility of the insurance company to deal with the legal procedures that will take place for the determination of compensation.
Along with third party insurance, you also get Compulsory Personal Accident Insurance (Compulsory Personal Accident Insurance) of 15 lakhs. It provides compensation of up to Rs 15 lakh in the event of death or permanent disability of the vehicle owner.
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But keep in mind, your own damage to the vehicle is not compensated by a third party insurance policy. For this, you have to take Own Damage Cover , which is available only after taking a comprehensive motor insurance policy.
Comprehensive Motor Insurance Policy: It is also known as complete insurance policy. In this, the insurance company not only pays the compensation 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 a comprehensive motor insurance policy .
Add-on Insurance: Comprehensive insurance also gives you the facility to add a variety of Add-on Covers (subsidiary insurance policies). The kind of add-on insurance that you add to your main insurance policy, you get the benefit of additional insurance cover separately. But, keep in mind that the premium for each add-on policy is also added separately, making your insurance policy equally expensive. The names of some of the major types of addon insurance are as follows-
- Zero Depreciation Cover: To get the full insurance claim of the vehicle even if it is old
- No Claim Bonus Protection Cover: To reduce the insurance charges if no claim is made during the policy
- Engine Protection Cover. : To get compensation for damage to the engine
- Roadside Assistance Cover: To get help on the spot after an accident
- Passenger Cover: To get compensation for damage caused to the passengers in the train
- Return to Invoice Cover. To get the value of the vehicle equal to the price recorded in the receipt of the vehicle in the event of an accident.
Types of Insurance by Vehicle Category
Depending on the category of vehicle, there are three types of vehicle insurance.
- Car Insurance
- Two Wheeler Insurance
- Commercial Vehicle Insurance
Now let's know about all three in a little detail-
By taking car insurance, in the event of an accident, there is a facility to compensate for the damage caused to the vehicle. In the event of natural calamities or man-made calamities, the compensation for the damage caused 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 liability on damage caused to another person or property (third party) in the event of an accident caused by your vehicle. The driver of the vehicle is also entitled to get the benefit of this third party liability. Not only this, there is an option to take coverage for the passengers / co-passengers also. However, the more the coverage increases, the higher the premium of the policy.
Two Wheeler Insurance
Under two wheeler insurance also, the facility of compensation for damage caused to own vehicle along with third party liability is provided. Apart from road accidents, this type of insurance also provides protection against natural and man made calamity. Generally this insurance is for one year.
Long-term two wheeler insurance (LTTW) facility has also been started by the Insurance Regulatory and Development Authority of India (IRDAI insurance regulatory and development authority). Can get vehicle insurance for
It is mandatory for insurance companies to give personal accident cover of Rs 1 lakh along with two wheeler insurance. You can also take insurance for the riders by increasing the premium.
Commercial Vehicle Insurance
All vehicles that are 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 damage caused in the event of an accident or disaster.
In the event of a road accident, apart from indemnification for damage to any other person or property (third party), the facility of claims for death or bodily damage is also a part of this type of insurance policy.
While determining the premium for an insurance policy, the make and model of the commercial vehicle, place of registration, year of manufacture, immediate showroom price, etc., are taken into consideration. and also whether the insurer is a person or a company.
Why Motor Insurance Necessary?
Even if you drive very efficiently, even if you do not need to take a vehicle on congested roads, getting vehicle insurance is always a profitable deal. By having auto insurance, you are saved from these many types of difficulties-
1. To compensate for damage to another person, vehicle or property
According to the Motor Vehicle Act applicable in India, it is mandatory to take third party liability insurance for every vehicle. In the event of an accident, the damage caused by your vehicle to another person (third party) is settled through third party insurance . This damage can be in the form of permanent injury or even death. Whose compensation can be in lakhs or even crores. The damage caused to the property of another person is also paid under the same third party liability insurance.
Even under normal circumstances, if you do not have third party insurance for your vehicle, you can be fined up to Rs 2000 or jail for 3 months if caught. Even both the punishments can be given together.
2. For damage caused to own vehicle
In the event of an accident, the cost of repairing the damage to your vehicle is covered by First Party Motor Insurance . Due to this, not only you are safe from sudden financial crisis, but also free from the hassles of repairing. Now many companies (especially car companies) are also providing the facility of roadside assistance. In this, you are helped only by reaching the spot (at the accident site).
3. Compensation for damage caused by natural calamity or other such event
Having vehicle insurance also helps you on damages caused by a natural disaster or human calamities, etc.
What type of incidents are involved: Such contingencies include road accident, car fire, natural calamity such as earthquake, landslide, flood, thunderstorm -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 wise deal in every way.
Keep in mind while taking vehicle insurance. Be Cautious When Opting
Often people opt for an insurance policy after seeing less amount of premium (paying money) of vehicle insurance. But it may be that by giving cheap plans, it is giving you very little comfort in terms of coverage. A premium may seem expensive, but it also comes with zero depreciation add-on.
In fact, there are three things to keep in mind while choosing an insurance policy.
- How is the credit of the insurance company in the market? (Variations on accessibility and speed of service)
- What coverage is it giving you and how much? (For self and third parties also)
- What is the quantum of premium to be paid on your behalf? (Not charging much by giving a little facility)
Keeping all the three facts in mind, you can choose the best option.