MOTOR INSURANCE
As per the Motor Vehicles Act, 1988, all vehicles running on the Indian roads is mandatory to be insured. Motor insurance companies allow you to choose the type of coverage you want to opt for. There are two types of motor insurance – Third Party Liability Cover and Comprehensive Motor Insurance Policy.
Motor Insurance category includes
- The smartest thing to secure your motor financially is by buying a motor insurance policy. This would save your finances if your car meets with an accident, or falls prey to any natural disaster like floods, earthquake, theft, etc. There are 2 types of motor insurance policy:
- Third Party Liability Motor Insurance is nothing but the coverage guaranteed to the third party only i.e. Damage to another person’s vehicle or property, bodily injuries and permanent disability during an accident by your vehicle. It is a mandatory over as per the law. We wouldn’t recommend you to buy this basic third-party insurance if you really love your vehicle from the bottom your heart. This type of coverage is best for people who think motor insurance is mandatory and buy this type just for the heck of it.
- Comprehensive Motor Insurance is an optional coverage and thus is not mandatory. This type of motor insurance provides coverage for third-party and also for your vehicle. It is best for those who want to cover the losses due to the accidents and also to recover losses due to theft and natural disasters, and not for those who take car insurance merely as a mandatory clause.
