Is it mandatory to have a motor insurance?
As per provisions of 'Motor Vehicles Act 1988' it is mandatory for every owner of 'any vehicle' plying on public roads in India to have a valid 'auto insurance policy'. Here, 'any vehicle' means irrespective of the purpose for which the vehicle is being used whether for social, pleasure, domestic, transportation or any other purpose. The reason is simple. When a vehicle is involved in an accident and causes damage to life or properties of a third party(s) the owner becomes legally liable to pay damages for the accident and the policy covers the amount of such damages.
Motor insurance may be broadly divided into two categories :-
i) Third Party Motor Insurance : Third party motor insurance covers any damage or injury caused by the insured to another vehicle and its passengers. Third party motor insurance is the basic insurance which is mandatory by the 'Motor Vehicles Act, 1988 and does not cover the owner(insured) and damage to his/her vehicle. It also does not provide cover if the car or the belongings of the owner is stolen or damaged. The 'Motor Vehicles Act also says that the claim may be lodged under 'no fault liability claims' which means that the 'claimant' is under no obligation to prove negligence on the part of the vehicle that caused the accident.
ii) Comprehensive Motor Insurance : Third party insurance only covers damage and injury caused to third party by the vehicle of the insured but what if your vehicle is stolen or damaged due to natural calamities like flood or unrest like riot, arson? Here is the need for a 'Comprehensive Auto Insurance'. Comprehensive insurance covers damage to the car other than collision.
However, having a 'comprehensive policy is pricey. Banks financing for new vehicle purchase always make it mandatory for the borrower to have a comprehensive policy. If you have purchased a new vehicle with your own money it is always wise to have a comprehensive policy. Otherwise any damage or theft may prove to be dearly. If your car is more than 5 years old it may not fetch a very good price and you may have a second thought whether to have a 'comprehensive insurance' or not.
A comprehensive policy covers the following situations : -
Without a comprehensive coverage, you shall have to bear the entire cost of repair in case your car is damaged for some reasons 'other than collision'. As far as the 'high price' of modern cars is concerned it is always prudent to have a comprehensive policy. ii) Comprehensive Motor Insurance : Third party insurance only covers damage and injury caused to third party by the vehicle of the insured but what if your vehicle is stolen or damaged due to natural calamities like flood or unrest like riot, arson? Here is the need for a 'Comprehensive Auto Insurance'. Comprehensive insurance covers damage to the car other than collision.
However, having a 'comprehensive policy is pricey. Banks financing for new vehicle purchase always make it mandatory for the borrower to have a comprehensive policy. If you have purchased a new vehicle with your own money it is always wise to have a comprehensive policy. Otherwise any damage or theft may prove to be dearly. If your car is more than 5 years old it may not fetch a very good price and you may have a second thought whether to have a 'comprehensive insurance' or not.
A comprehensive policy covers the following situations : -
- Vandalism like public outrage, riot, arson
- Theft
- Burglary
- Fire
- Flood
- Damage caused by collision with an animal
- Damage by falling objects or missiles
- Damage caused by severe weather condition like tornado, cyclone, hurricane
Two Wheeler Insurance :
Many people think buying a 'comprehensive policy' for a two wheeler is a wastage of money. They might prove to be wrong in the event of a theft or damage or injury to self arising out of an accident. To keep your bike and yourself always safe and secured a comprehensive policy is a good deal.
Coverage :
- Loss or damage to two wheeler against natural calamities - fire, explosion, lightning, earthquake, cyclone, storm, flood, inundation, landslide
- Loss or damage to two wheeler against man made incidents - theft, burglary, riot, arson, looting, vandalism, terrorist attack, damage caused in transit by rail, road, air, inland waterways
- Personal accident cover - some companies provide personal accident cover for the owner/driver while driving and for pillion rider also with a little extra premium
- Third party legal liability - protection against legal liability arising out of accident while driving, resulting in injury, permanent disability or death to third party(s)
Exclusion :
- Normal wear & tear
- Mechanical or electrical failure
- Periodical servicing
- Driving by a person without a valid licence, racing or violating traffic rules
- Driving by a person under influence of drug, liquor
- Loss or damage due to war, nuclear attack
- Loss or damage to accessories by burglary, theft unless the vehicle is stolen at the same time
- Wear and tear of consumable tyres & tubes unless the vehicle is damaged at the same time
Read more :
You may also like :
0 comments:
Post a Comment