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Types Of Motor Insurance Policies

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Motor insurance is one of the primary financial protection tools that you should have in your possession. With the ever-increasing incidence of accidents in the country and the strict regulations laid out by the government, it is inevitable that you buy adequate insurance protection for your vehicle.

There are various types of motor insurance policies available in the country. You should ideally assess your insurance requirements and decide on a policy that safeguards you in the most optimum way.

How To Choose The Right Motor Insurance Coverage?

Motor insurance plans are classified into different categories based on the extent of coverage offered and the type of vehicle for which the insurance is sought.

  1. Amount of insurance coverage - Motor insurance plans can be divided into three types based on the amount of insurance protection offered:
    1. Third-party liability insurance - This is the most basic form of car insurance and hence, it is also the cheapest. This insurance scheme is also referred to as liability-only insurance or act-only plan. The Motor Vehicles Act, 1988, mandates that all car owners are in possession of this insurance policy for the protection of their vehicles. In case you drive a car without a minimum of third-party liability insurance cover, you are liable to face penalties.
      1. The coverage offered by this insurance plan includes protection to a third party for incidents such as injuries/death and property damage caused in an accident involving the insured vehicle.
      2. It should be noted that the third-party liability insurance cover does not offer own-damage cover, i.e., coverage for the insured vehicle or the owner-driver.
      3. Some insurance companies offer a personal accident cover for the owner-driver along with the third-party liability insurance plan.
      4. Although there is no upper limit on the amount a third party can receive as compensation for death/disabilities, there is a cap of Rs.7.5 lakh on the maximum amount offered for third-party property damages. However, the final claim amount is decided by the court.
    2. Comprehensive motor insurance - Often referred to as a package policy by some insurers, this plan provides more exhaustive insurance protection, as it encompasses third-party liability coverage and own-damage cover. The detailed coverage of the comprehensive motor insurance plan is as described below:
      1. Own-damage cover - This includes protection for the insured vehicle from the following events:
        • Accidental damages
        • Damages while in transit via rail, road, waterways, lift, etc.
        • Damages caused by natural calamities, such as earthquakes, floods, hurricanes, etc.
        • Damages from man-made disasters such as strikes, riots, vandalism, etc.
        • Theft of the insured vehicle

        Additionally, the comprehensive motor insurance plan offers personal accident cover to the owner-driver.

      2. Third-party liability cover - This part of the comprehensive motor insurance policy protects the policyholder from legal liabilities to a third party from accidental injuries/death or property damage. The maximum amount of coverage under this insurance for injuries/death is unlimited. However, there is a cap of Rs.7.5 lakh on coverage for third-party property damage. The final claim payout for property damage is decided by the court.
    3. Motor insurance add-on plans - Apart from the comprehensive and third-party liability insurance plans detailed above, most motor insurance companies also offer add-on covers that can enhance the coverage of the base policy. These riders should be purchased from the same insurance provider by paying an additional amount. Some of these add-on plans are as described below:
      1. Zero depreciation cover - This is a popular motor insurance add-on plan that offers significant savings at the time of a claim. It is also referred to as nil depreciation cover or bumper to bumper policy. Consider that your vehicle is insured with a comprehensive motor insurance policy. At the time of a claim, you will still have to bear the expenses pertaining to depreciation of the vehicle parts and excesses. However, if your comprehensive motor insurance plan was reinforced with a nil depreciation cover, the insurer would bear the expenses for the depreciation of vehicle parts.
      2. Engine protect cover - A comprehensive motor insurance plan does not protect the vehicle from mechanical or electrical damages to the engine. Buying an engine protect cover offers your engine the much-needed protection, especially if you reside in an area prone to waterlogging.
      3. Return to Invoice (RTI) cover - This add-on plan protects your vehicle from total loss expenses. In the event of a total loss scenario such as a car theft, it provides you the actual invoice value of the vehicle, without accounting for its depreciation with age.
      4. Loss of personal belongings cover - Loss of expensive electronic equipments, laptops, etc. kept in the insured vehicle is offered coverage under this add-on insurance plan.
      5. No Claim Bonus (NCB) protect cover - No Claim Bonus is a significant bonus offered by insurers to drivers who refrain from raising motor insurance claims in a policy year. You can preserve this bonus even after raising a claim if your vehicle insurance has an NCB protect cover.
      6. Personal accident cover for the passengers - The comprehensive car insurance policy can be enhanced to offer protection for the passengers by opting for this rider.
      7. Key replacement cover - Under this cover, the insurance company reimburses the cost of replacement of the vehicle keys if these were lost or misplaced.
      8. Roadside assistance cover - This add-on cover offers 24/7 protection to the policyholder from incidents such as flat tyre, fuel depletion, requirement for expert scrutiny, etc.
      9. Consumables cover - Components that are used in a vehicle such as nuts and bolts, screen washers, engine oil, etc. are collectively referred to as consumables. The insurance company does not bear the cost of these components at the time of a claim. However, if your vehicle insurance was equipped with this rider, you will receive coverage for consumables.
      10. Daily allowance cover - This add-on cover offers reimbursement for the expenses involved in hiring an alternate vehicle when the insured automobile is undergoing repairs at a garage.
  2. Type of vehicle - Motor insurance policies can be classified into two types based on the vehicle for which it is purchased:
    1. Car insurance - This coverage offers insurance protection for all types of cars and SUVs.
    2. Two-wheeler insurance - This insurance plan is availed to protect a two-wheeler from eventualities such as accidents, natural disasters, theft, man-made calamities, etc.

    Apart from the above, motor insurance is also segregated based on the purpose of use of the vehicle. So, you can opt to buy a private motor insurance policy for your personal vehicle. Along the same lines, a commercial motor insurance plan will offer insurance coverage for the vehicle you will be using for business purposes.

    In conclusion, motor insurance in India can be of several types. It is up to you to understand your unique insurance needs and decide on a policy that suits you best. It is also advisable to buy motor insurance online for the security and convenience that it offers.

Types Of Motor Insurance Policies Reviews

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  • HDFC Ergo Car Insurance
    "Very good"
    0.5 5.0/5 "Blown Away!"
    Even my car was insured with HDFC Ergo. It is a second-end car and have chosen the third party insurance. I have not done any claim so far. The premium is reasonable. It offers bumper to bumper facility and road side assistance. The policy period is 2 years.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 14, 2019
  • Tata AIG Car Insurance
    "Good Insurer"
    0.5 5.0/5 "Blown Away!"
    My financier suggested the Tata Aig general insurance, the premium is economical for the car policy. I have honda amaze car it got insured with them. The insurance company is providing 24 hours service, cash less garages, brake down service for the tenure of four years. On time I got the papers from the Tata Aig.
    Was this review helpful? 1
    , tirupur
    Reviewed on Jan 10, 2019
  • Tata AIG Car Insurance
    "Good Insurer"
    0.5 5.0/5 "Blown Away!"
    My financier suggested the Tata Aig general insurance, the premium is economical for the car policy. I have honda amaze car it got insured with them. The insurance company is providing 24 hours service, cash less garages, brake down service for the tenure of four years. On time I got the papers from the Tata Aig.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 10, 2019
  • National Insurance Car Insurance
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    I had taken this Insurance policy for my Maruti Car and i had been paying the premium on an annual basis. The premium amount has not been too high and there has been cash less garages available with this insurance policy. Their customer support has also been helpful at times.
    Was this review helpful? 1
    , pune
    Reviewed on Jan 09, 2019
  • ICICI Lombard Car Insurance
    "Nice Policy"
    0.5 4.0/5 "Great!"
    My car was insured with ICICI Lombard. Last year i have purchased this insurance policy. My wife has referred me about this policy. I pay the premium amount of Rs. 13500. They have given me a convenient IDV value. I had no claim experience so far.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 09, 2019
  • New India Car Insurance
    "Need to improve the service"
    0.5 3.0/5 "Satisfactory"
    I'm not satisfied with the service provided by new India. I have bought the car insurance policy. They closed their branch on every weekends hence its difficult to renew the policy. I have been paying the premium amount of Rs. 14000 which is a competitive price. They have given the IDV value of Rs. 1.50 lakhs.
    Was this review helpful? 0
    , mangalore
    Reviewed on Jan 09, 2019
  • New India Car Insurance
    "Average Car Insurance"
    0.5 3.0/5 "Satisfactory"
    My car insured with the New India Insurance company. I have been renewing the policy with the same company for 3 years. I have paid the premium amount of Rs. 7000 and they have offered me a satisfied coverage value. The documentation process was fine
    Was this review helpful? 0
    , mangalore
    Reviewed on Jan 09, 2019
  • review Car Insurance
    "Its Good"
    0.5 3.5/5 "Pretty good"
    Last year I had car policy with Bharthi axa whenever I try to renew it ask my poliy no, whenever I mention the same, it shows the its incorrect. If I try to reach the customer care its not reachable. I done the claim, some minor damage back side of the car, they have processing fee 1500. Remaining all taken care by the insurer.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 08, 2019
  • ICICI Lombard Car Insurance
    "Great Policy"
    0.5 4.0/5 "Great!"
    ICICI Lombard has a good brand value hence i have selected the car insurance policy with this card and the dealer has also recommended about this policy. I pay the premium amount of Rs. 9000 and this is a 100% coverage with bumper to bumper facility. I'm not sure about the IDV value. Its easy to renew the policy.
    Was this review helpful? 2
    , new delhi
    Reviewed on Jan 08, 2019
  • ICICI Lombard Car Insurance
    "Good"
    0.5 5.0/5 "Blown Away!"
    Previously my car was insured was with ICICI Lombard and it was offered by the showroom. I got a call from the representative for the policy renewal as reminder. I got the insurance paper. I have not done done a claim. It is a comprehensive with zero dep. The premium was high so changed my insurer.
    Was this review helpful? 1
    , mumbai
    Reviewed on Jan 08, 2019
  • Future Generali Car Insurance
    "Good"
    0.5 4.0/5 "Great!"
    I have taken a car insurance from Future Generali through online portal. The premium was reasonable and also they have provide bumper to bumper facility. The policy period is one year. There is no interaction between the customer service. I just gave my car for the claim so no experience.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 08, 2019
  • Oriental Insurance Car Insurance
    "Good insurance company"
    0.5 2.0/5 "Expected more"
    Dealer has referred me about this oriental car insurance when i purchase the vehicle. They have rejected the claim since the copy of FIT is not available. They have given me a coverage value upto Rs. 6 lakhs. For the past 3 years i have been renewed the policy with the same company.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 07, 2019
  • Iffco Tokio Car Insurance
    "Good Policy and you can try"
    0.5 4.0/5 "Great!"
    Two months before, i have taken my car insurance policy with Iffco Tokio. Its a PAN India agreement policy for my Maruti Car. I don't remember about the coverage value. This is a zero depreciation policy. I paid the premium amount of Rs. 6500. I have not seen any add on and cashless garage facility.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 07, 2019
  • Reliance General Car Insurance
    "Its Excellent"
    0.5 4.0/5 "Great!"
    My brother is working with Reliance hence I took my two wheeler policy from this insurance company. I have hyundai accent car, they are providing cash less garages for the damage. I have zero depreciation bumper to bumper policy for the term of one year.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 07, 2019
  • Reliance General Car Insurance
    "Good Policy"
    0.5 5.0/5 "Blown Away!"
    My car insurance policy was taken with reliance. The dealer has provided me a policy with this policy. This is a 100% coverage value which covers the bumper to bumper facility, They have given me a IDV value of Rs. 11 lakhs. I pay the premium amount of RS. 33000.
    Was this review helpful? 0
    , thane
    Reviewed on Jan 04, 2019
  • HDFC Ergo Car Insurance
    "Good service provider"
    0.5 4.5/5 "Excellent!"
    The reason to avail HDFC Ergo policy, my banker have suggest this insurer for my car. They gave me the best insured value around Rs. 6 lakhs based on the vehicle age. I have Hyundai I20 car, they are providing 24/7 helpline and cashless service.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 04, 2019
  • ICICI Lombard Car Insurance
    "Good Policy to take"
    0.5 3.0/5 "Satisfactory"
    My car was insured with ICICI Lombard. I pay the premium amount of Rs. 22000 and i have been renewing the policy continuously for 2 years. They have provided me a no claim bonus. Its covered with bumper to bumper facility. My dealer has recommended me about this policy when i purchase a car.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 03, 2019
  • Iffco Tokio Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    I have a car insurance with IFFCO TOKYO from last 1 year, there was no claim experience so far with this insurance policy. I pay a premium of Rs 5500 for this car insurance. This is a first party insurance with 0% depreciation and the coverage value is good.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 03, 2019
  • Bajaj Allianz Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    I have a car insurance policy with Bajaj allianz from last 2 years, a premium of Rs 13000 has to be paid for this insurance policy. There was no claim experience so far with this car insurance. This policy has full coverage with 0% depreciation.
    Was this review helpful? 0
    , secunderabad
    Reviewed on Jan 03, 2019
  • Tata AIG Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    I am having a car insurance with TATA AIG from last 1 year, a premium of Rs 7272 has to be paid for this car insurance policy. I did not claim anything so far from this insurance policy. I am happy with the plan benefits and policy coverage of this insurance.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 03, 2019
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