What is motor insurance ?

It is an insurance policy that covers you against losses and damages to your motor vehicle due to accidents, theft, fire or natural disasters.

Types of liabilities covered in these policies are .....

1 ) 3rd party liability 2 ) Comprehensive plan

Off late a new type of motor insurance policy has been approved by the IRDAI where Premiums are calculated as per declaration given at time of policy. 

Motor insurance are also classified by scope of their coverage and having some  inclusions & exclusions in motor insurance.

Inclusions

1 )  Earthquake 2 )  Landslide 3 )  Fire 4 )  Burglary 5 )  Riots. 6 )  Strike 7 )  Terror act 8 )  Other accidental damages

Exclusions

1 )  Damage due to driver being under the influence of    alcohol or drugs 2 )  Illegal usage of the         vehicle 3 )  Not having a valid driving license 4 )  Loss outside the jurisdiction (i.e., India) 5 )  Any other loss which violates the policy agreement

How is motor insurance premium calculated ?

Insurance firms consider multiple factors before finalizing the premium, which are -

1 )  Age of owner of vehicle. 2 )  Driving/claim history. 3 )  Owner’s profession.

4 )  Vehicle make and year of production.  -  This also determines the vehicle’s IDV (Insured Declared Value) amongst other factors. 5 )  Geographic location etc.

To know complete procedure and other details, click below.