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Motor Insurance

Motor insurance is a vehicle insurance policy that is mandatory for vehicles like trucks, cars, jeeps, bikes, scooters, etc. This policy offers coverage to the vehicle owner/driver against financial losses that may occur due to accidents or other kinds of damages.

Having valid motor insurance is compulsory in India to protect vehicle owners from potential financial risks. It is the best form of security that you can acquire to prevent significant expenses that result after an accident. The Government poses the compulsion for the safety of the individuals who travel via motor vehicles daily.

No one can deny that buying a vehicle is the second most expensive investment in a person’s life after home. Thus, protecting the investment against unforeseen events is crucial. Considering the hike in the vehicle repair charges and the risks involved in driving, an unfortunate accident can put a big hole in your pocket.

The yearly premiums that you pay for the motor insurance policy are meagre as compared to the advantages and protection the coverage will offer you in case of mishaps. Though there are many misconceptions regarding the policy, it will most certainly compensate you against the physical damage that arises under different circumstances.

Why should you buy a Motor Insurance Policy?

Believe it or not, driving in India has many associated risks. Millions of people own a driving license, and there is at least one vehicle in the household. Vehicles have become a crucial means of transportation, eliminating people’s need to travel via public transport. At the same time, we also know that an increased number of private vehicles also increases the risk of road accidents and rule-breaking. Accounting for such factors, it becomes critical to own a vehicle insurance policy. Besides that, let’s review the primary reasons to buy a comprehensive motor insurance policy

Legal Requirement

The first reason is, of course, to follow the laws and regulations of the Government. A person should oblige to buy a motor insurance policy with minimum coverage before taking the vehicle out on the road.

Third-party Damage Coverage

With sufficient coverage, you can pay for the damages that occurred after a collision with a third-party. Without motor insurance, you’ll have to pay from your pocket, and an appropriate amount of coverage can take care of such expenses.

Security Against Theft

Theft is one of the most significant threats on a vehicle. But with a vehicle insurance policy, you are protected against theft, vandalism, and all man-made harmful activities.

Damage Expense Coverage

Paying outright for vehicle damage repairs will affect your financial condition. However, you can pay for such damages with the insurance even though the amount is hefty as long as you have enough coverage.

Insurance against Personal Injuries

Not every vehicle owner is lucky to get out of accidents without suffering from injuries. The motor insurance policy will pay for all the minor and major injuries that might occur due to accidents.

Features of a Motor Insurance Policy

Features of a Motor Insurance Policy

  • A hassle-free way to acquire motor insurance online with minimal efforts
  • Avail comprehensive and third-party insurance for complete protection
  • Renew the insurance online without having to waste your time travelling or filling hard copies of forms
  • Get proper coverage against natural and man-made calamities, including floods, earthquakes, theft, accidents, and vandalism.
  • Include third-party liability coverage to compensate for the losses of other parties
  • Making cashless claims is also easier by providing sufficient evidence in case of accidents and theft.
  • Most companies have a network of garages where you can get repair work done and ask for an evaluation of the vehicle’s condition after mishaps.
  • No claim bonus feature allows a vehicle owner to file a claim at any time and even offers transference to other insurers.
  • All motor insurance companies offer dedicated assistance and customer support service to the customers to keep them updated regarding the motor insurance policy and claim status.
  • Add-on features are also available to allow customers to add coverage in the policy at any point.

Types of Motor Insurance

Whether you are buying a private car, two-wheeler, or a commercial one, the types of motor insurance plans are broadly classified into two:

  • Comprehensive Insurance Policy: With this policy, you can pay for damage to your vehicle as well as others, including motorbikes, private cars, scooters, and commercial vehicles.
  • Third-party Insurance Policy: The third-party motor insurance policy is liability coverage that is uniformly applicable to all vehicles. As per the Motor Vehicles Act of 1988, third party car insurance and third-party insurance for bike are compulsory for vehicles plying on Indian roads. Failure to comply with this rule would result in an individual to paying hefty fines according to the Motor Amendments Act, 2019.
  • Pay as You Go: It is a new type of policy that allows the policyholders to pay by calculating the kilometers driven. With these two motor insurance policies in consideration.

The types of vehicle insurance are categorized as below :

Car Insurance

The ideal choice to secure your private four-wheeler is getting car insurance. It is a contract that is drawn between the vehicle owner and the insurance company that covers both comprehensive policy and third-party liability. With this plan, you will get benefits like:

  • Cashless claims
  • Personal accident cover
  • Loss/damage protection
  • Unlimited liability for third-party injuries and death claims
Two-Wheeler Insurance

As the name suggests, two-wheeler insurance or bike insurance is meant for scooters, bikes and other two wheelers. It is a type of vehicle insurance that will ensure a safe ride as two-wheelers have slightly more risks of personal injuries. The benefits included in the plan are:

  • Comprehensive coverage
  • 2/3 years of own damage motor insurance
  • No claim bonus protection
  • Inflation protection
Commercial Vehicle Insurance

The risks of damage to commercial vehicles are more than private vehicles. Hence, commercial vehicle insurance allows drivers to reduce the losses that incur in unfortunate events. It involves vehicles like tractors, cranes, taxies, goods carrying vehicles, passenger-carrying vehicles, etc. The benefits will include:

  • Unlimited liability coverage for injury and death claims
  • Personal accident cover
  • Offers loss and damage protection
  • Indemnity for other’s property
  • You can purchase a suitable vehicle insurance policy that protects all kinds of vehicles in worst-case scenarios. Be it fire, burglary, vandalism, earthquake, flood, storms, or accidents; you can feel secure under all circumstances.

Benefits of Getting Motor Insurance Online

Not long ago, people had to visit the stores to learn about insurance policies. But with the digitisation of all services, customers can now avail the benefits of buying motor insurance online. It is far better than the traditional method of getting insurance and also presents the simplest way to compare and finalise your decision.

Here are some key benefits of getting motor vehicle insurance online.

Easy Comparison

Instead of visiting multiple stores, you can get quotes from as many motor insurance providers as possible and compare their services and rates without any interference. Most companies provide a detailed explanation for their plans, which further makes it possible for customers to contrast the features and benefits in a hassle-free manner.

Secure Transactions

Offline purchase of motor insurance policies involves a lot of paperwork that contains confidential data. Online processing removes that risk, and transactions are done without documentation making it secure.


No more wasting time to go through the extensive paperwork! The vehicle insurance online services work by collecting fewer details and make the entire process less hectic. The information is processed smoothly, and issuance is provided without further delay.

Multiple Payment Modes

Most companies offer multiple payment modes to avail cashless transactions and premium payments for the insurance policy. You can even renew the policy online now.

Customization Option

Customers can opt for any coverage plan and get add-ons on the policy as you want. Moreover, you can learn all about the features and policies of different companies to figure out the best plan.


Unlike the conventional searches that were confusing and dealing with motor insurance agents is not necessary now. The agents used to leave out many specifications to convince potential buyers. But with vehicle insurance online covers, the process is transparent now

No Middleman

As stated above, the motor insurance agents or third-parties won’t clarify every aspect, rule, and regulation of the policy. But the online process removes the middleman and eliminates the uncertainty from choosing the best plan.

Immediate Policy Issuance

If you buy vehicle insurance online, the time taken for processing all documents is reduced to a few minutes. You can get the policy instantly, and the details you submit will be saved to the insurers


Whether you are out of the city or have a busy schedule, purchasing the desired motor insurance coverage can be done while you are sitting at home or office anytime.

Online Renewal

One appreciable benefit of motor insurance online is that you will stay updated with the policy status and renew the plan on time before it expires.