Car
insurance in India is also popularly known as motor, vehicle or auto
insurance. These insurance policies encompass all types of cars and
assist car-owners financially in case of a road mishap. The terms and
conditions of vehicle insurance differs from one plan to another.
According to some policies only the vehicle is insured and some other
plans have both the motor and the owner insured. Increasing number of
road mishaps have triggered the necessity of car insurance in India
even more in recent times.
Car insurance in India is
an obligation
It is
mandatory for every vehicle on road in India to have a valid
insurance. It is applicable for both brand new and used vehicles.
Owners of used cars need to ensure that the policy is shifted to
their names from previous owners within 14 days of purchase. Any
delay would result in the incapability of making claims in the event
of an accident because the new owner would not be considered as the
policy holder. Owners of new cars can opt for an insurance binder if
they want to start driving the car immediately after purchasing. This
insurance binder is considered as the car insurance policy and it
comes into effect instantly. If owners cannot avail an insurance
binder they are better to wait until they have their vehicles insured
rather than starting to drive without any insurance cover.
Kinds of car insurance
available in India
Two
types of motor insurance is predominantly available in India. Car
owners can choose between plans like comprehensive cover and Third
Party Liability cover as per their requirements. Many people in India
that newly owns a car make the wrong choice of insurance cover. This
is primarily because they are not well aware of their needs so they
cannot make the right choice accordingly. Another reason of making a
wrong decision is they don't know about the features of both these
types of car insurance plan.
Comprehensive cover
Under a
comprehensive cover, both the vehicle and the owner is insured. The
coverage of a comprehensive car insurance policy includes damages of
motors and accessories because of man-made losses like theft,
violence, natural disasters such as earthquake, fire or storm or any
type of explosion. The cover limit and premium amount of
comprehensive plans vary according to the policies offered by various
insurers.
Third Party Liability
Cover
This
type of insurance policy shields car owners from legal liabilities
arising out of an accident. The plan covers third party injury,
property damage and death of third party and offer protection when
third party comes up with claims for above-mentioned losses. However,
this type of car insurance policy further offers protection for the
damages of vehicle. This insurance plan is mandatory in India.
Car insurance in India is gaining significance with each passing year.
Although it doesn't cover vehicle's mechanical or electrical issues,
it serves a lot of useful purposes. This is why a majority of people
in India are opting for insurance as quick as they purchase a
vehicle.
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