PART- I

Traffic injuries and fatalities Road accidents take a toll of 1.2 million people every year and injure about 35 million a year. Thus, Indian government has made it mandatory to have motor insurance, if you are riding on Indian roads. Motor Insurance protects your car and helps you in coping with the expense of accidents, damage or theft. While you are driving, you are not only responsible for yourself but also the safety of, your passengers, other drivers on the road, other people’s property and pedestrians on the road

What are the types of motor insurance policies?

There are two types of motor vehicle insurances - "Motor Policy A" (also known as third party risk) and "Motor Policy B" (also known as comprehensive insurance policy). Although legal requirement is met by Motor Policy A, it would be sensible on your part to go for comprehensive insurance policy

What is a ‘Third party risk’ policy?

Third Party risk policy covers risks required under the Motor Vehicles Act. It is mandatory that every car owner be covered against Act Risks under Section 146 of Motor Vehicles Act 1988. The scope of cover is to pay compensation for death of or bodily injuries to third parties and damage to the property of third parties. While the Insured is treated as the first party and the Insurance Company second party, all others would be third parties. For private vehicles and cars, the 'Act Only Policy' covers third party property damages only upto Rs. 6000/-. Fire and theft risk can be covered by paying additional premium.

What is a ‘Comprehensive insurance’ policy?

A comprehensive insurance policy includes, Third party cover, Loss / Damage to vehicle as a result of an accident, fire or theft, Risks against floods, earthquake, riots and strikes, Accessories like music system, air-conditioner, etc. can also be covered by paying additional premium and Risk of loss/damage while in transit by road, rail, watercraft, air, elevator, etc. The insurance policy is valid for one year. It becomes effective when the payment of premium is received by the insurance company.

contd. . .

To understand the nuances of different types of policies and its price, feel free to seek the help of InsuranceMall to select the right products based on your need. Or you can directly call them on +91-22-30503050

InsuranceMall is the leading and first online insurance broker in India. With the motto to make our customer delighted and proud about their decisions, we’re always there to help them with best possible policy