What is Motor Insurance? Its types and importance.
Motor insurance is a type of policy that enables financial aid when an accident involves your vehicle or bike. The government requires this to for your security and the safety of another people. Motor insurance is an exclusive insurance policy designed to assist car owners safeguard their assets from financial losses from theft or vehicle damage. It does not matter if you have an individual vehicle or commercial vehicle, or two-wheelers.
The Motor insurance includes the damages to the vehicles and the Third Party Liability as per the Comprehensive Vehicle Policy. Moreover it includes personal accident that occurs to the drivers, passengers, assistants, and conductors. This coverage extends to public vehicles damages caused by fire lightning and natural disasters like storms, floods etc.
Various types of Motor Insurance Policy:
There are three kinds of policies based on the level of protection or cover offered:
1. 3rd-Party Policies
2. Comprehensive Cover Policy
3. Own Damage Insurance Policy
Importance of Motor Insurance Policy:
Vehicles has become more essential than luxurious. While planning for long-distance travel, most travellers want comfort and ease of automobiles instead of other modes of transportation. Motor insurance policies are very valuable and crucial if we decide to purchase an automobile or a vehicle.
Accidents can happen to anyone, but motor insurance policies help you to ensure that your car is protected. Many insurance companies do not purchase insurance policies for damage and damages to cars.
Today, an extra benefit of motor insurance is the third liability for third parties.
Many motor insurance policies came with an option called the no-claim bonus. It is available to the point that you have not made a claim on insurance for a considerable time. In that situation, the insurance company will provide you discounts on the cost of the premium.