Motor Insurance, especially in India, is by far the most common class of insurance. The various sub-categories that fall under this class of insurance are as follows:
- Motor Private: Vehicles that are registered in the name of an individual for private use.
- Motor Commercial: Vehicles that are owned by a company and used for its business.
- General Cartage: Vehicles that are used for carrying goods or that are leased for transportation purposes.
- Rent-A-Cars: Vehicles rented out to individuals or leased to companies.
- Motor Trade Plate: A policy designed to protect vehicles, and liabilities arising out of them, whilst they are in the care and custody of automobile dealers or garages.
In India Third Party Insurance is mandatory to protect the general public and their property. Third Party Liability can also be extended to include the risks of fire and theft. Comprehensive Insurance is the other available option which covers not only third party legal liability but also accidental loss of, or damage to, the vehicle insured. Banks or financial institutions that finance the purchase of a vehicle will generally seek comprehensive cover for the vehicle in question with the interest on it assigned to them through a Hire-Purchase Clause.
Purchasing a Motor Policy
While taking out an insurance policy for a vehicle, one should pay special attention to the following factors:
- The standing or reputation of the Insurance Company in the market
- The scope of cover provided under the policy
- The liability limits
- Liability to family members or to employees
- Limitations of use
- Deductibles on the policy
- Agency repair options
- Protection to the driver and passengers
- Personal effects cover
- Territorial limits
- Malicious damage
- Cover in the event of natural calamities, war and S.R.C.C.