Here in this article we learn about Motor Insurance. In this article Sharp career will tell you the basic facts in detail about Motor Insurance those you must know before buying your dream car or any vehicle.
What is Motor Insurance?
Motor Insurance is also known as Vehicle Insurance or car insurance or auto insurance. Main objective of motor insurance is to provide monetary protection against physical damage caused by traffic collision, natural disaster and man-made calamities.
In India motor insurance provide accident cover for individual owners of the vehicle while driving and also for passengers and third part legal liability.
Why Motor Insurance is useful?
- Motor Insurance for third party legal liability is compulsory at the time of purchase of new vehicles.
- According to the motor vehicle act in India you have to take the motor insurance whether you have bought the vehicle for commercial purpose or for personal use.
- Accidents can happen due to any reason, even if the car driver is not at fault. But accident results into a lot of damages to car as well as to the person.
- Motor Insurance turns to be very beneficial under such circumstances.
- In case the driver is liable for an accident the expenses have to bear by the owner of the car. In such case third party motor insurance saves from financial loss.
- It also provides financial cover for damages due to other than accidents like fire, theft, etc.
What is covered in motor insurance?
Motor Insurance covers following financial losses
- Accidents caused by external means.
- Man-made calamities, such as explosion, burglary, theft, riots & strikes, malicious acts, terrorism etc.
- Natural calamities like Earthquakes, fire, floods, typhoons, hurricanes, storms, cyclones, lightning etc.
- Transit by rail/road, air or waterway.
- Third party legal liability.
- Cover for an owner driver in case of death.