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Types Of Motor Insurance Policies

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. - 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.

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Types Of Motor Insurance Policies Reviews

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  • National Insurance Car Insurance
    "GOOD"
    0.5 4.5/5 "Excellent!"
    I had no claim experience with NATIONAL INSURANCE and using from last more than 8-9 years. The premium paying was nominal than others when compared also the IDV value was nominal. The policy coverage is for bumper to bumper and also they are no claim, road side assistance is there.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jun 17, 2019
  • Iffco Tokio
    Iffco Tokio Car Insurance
    "GOOD"
    0.5 5.0/5 "Blown Away!"
    I am using the car insurance policy with IFFCO TOKIO GENERAL INSURANCE and using from last 2013 and i no claim experience also coverage is for bumper to bumper for full coverage. The premium and the IDV value is good compared to the others. There are benefits of road assistance is not there.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jun 16, 2019
  • review Car Insurance
    "Nice price"
    0.5 4.0/5 "Great!"
    They have provided me a good IDV value for the less premium amount. The Policybazaar people has taken the initiative they have assisting the policy while i purchasing the policy. I have paid the premium amount of Rs. 4500 for the IDV value of Rs. 3.5 lakhs. Its a comprehensive policy. They are provided me a no claim bonus and i do not have any claim experience till now.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jun 14, 2019
  • United India Car Insurance
    "Recommendable policy"
    0.5 3.0/5 "Satisfactory"
    Since my friend is working in United India hence i have chosen the car insurance policy from them. Since the car is 5 years old, they won't provide the zero depreciation policy and its a third party policy. I have paid the premium amount of Rs. 1800 and the premium is very less and the coverage amount is less than lakhs. I have got my no claim bonus and i don't have any claim experience with them. They have sent the hard copy of the documents to the customer's address without any request.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jun 14, 2019
  • ICICI Lombard Car Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    I had a claim experience with the card insurance policy holding with the ICICI LOMBARD GENERAL INSURANCE where the claim i got was 100%, the customer support is good. The premium paying through online it was higher. IDV value is good. Coverage is for zero dep. There was road side assistance is available.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jun 13, 2019
  • review Car Insurance
    "Value for money"
    0.5 5.0/5 "Blown Away!"
    I took my car insurance through an online channel from Kotak General. I chose this insurance company because of the premium is cheaper than others. I paid the premium around Rs. 17,000 for one year. I have a comprehensive plan as it covers my entire car parts and also it has a accidental cover. But the support team need improvement, however I got the IDV value around 8 lakhs for honda citi car.
    Was this review helpful? 0
    , kolkata
    Reviewed on Jun 13, 2019
  • National Insurance Car Insurance
    "Value for money"
    0.5 5.0/5 "Blown Away!"
    I availed car insurance with National Insurance company for that I paid the premium around Rs. 8000 for one year. I took comprehensive plan which cover for me and the vehicle. They do have road side assistance, 24 hours service. Whenever I go for the renewal they are providing no claim features its good.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jun 12, 2019
  • ICICI Lombard Car Insurance
    "Reliable policy"
    0.5 5.0/5 "Blown Away!"
    I had a claim experience twice with ICICI lombard which is good and its a 100% cashless claim. They have processed the claim immediately. In my policy, i got a no claim bonus, road side assistance and its zero depreciation policy. I have been paying the premium amount of Rs. 15000 and the policy got expired last month and they have sent me a reminder alert and calls.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jun 11, 2019
  • HDFC Ergo Car Insurance
    "Good claim experience"
    0.5 4.0/5 "Great!"
    I faced a claim with HDFC ERGO, when my car glass got damaged I got the cashless garages within 18 days they have rectified the issue. I paid the premium of Rs. 11,900 for one year. I availed zero dep its covers all plastic, glass material. Even the insurance company got tied up with garages.
    Was this review helpful? 0
    , ahmedabad
    Reviewed on Jun 11, 2019
  • ICICI Lombard Car Insurance
    "Good Policy"
    0.5 3.5/5 "Pretty good"
    ICICI is the one of the top banker and the policy has tie up with ICICI hence i have chosen my car insurance policy with them. I pay the premium amount of Rs. 30000 and its not a 100% covered policy. I had a claim experience with them and it was not a cashless and I'm not satisfied with it. Compared to others, there are so many restrictions. They have a charged slip and they will verify everything then only they will return the money and the process also got delayed.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jun 11, 2019
  • ICICI Lombard Car Insurance
    "Excellent"
    0.5 5.0/5 "Blown Away!"
    I have paid Rs.6800 for one year car policy with ICICI Lombard. I have Santro car which is 12 years old. It is a comprehensive third party insurance. The renewal process was very simple and never had any challenges. I am doing online renewal and the insurance paper sent on time. Out of 12 years claimed 3 times, the process was very smooth and easy. The garages are more for cashless.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jun 11, 2019
  • Oriental Insurance Car Insurance
    "Good Policy to use"
    0.5 3.0/5 "Satisfactory"
    I am paying the premium amount of Rs. 18000 for my car insurance policy which i taken from Oriental. I get a coverage amount of Rs. 3.50 lakhs and they are providing a cashless claim and till not applied for any claim. They have provided me a bumper to bumper and road side assistance and its not a zero depreciation policy.
    Was this review helpful? 0
    , ahmedabad
    Reviewed on Jun 11, 2019
  • Reliance General Car Insurance
    "Very Good Policy"
    0.5 4.5/5 "Excellent!"
    Actually its a company lease car, hence with their interest, they have provided me a policy with Reliance. This is a first party and third party covered policy. Since the company is paying the premium, I'm not sure about the premium amount and coverage amount. I do not have any claim experience
    Was this review helpful? 0
    , bangalore
    Reviewed on Jun 09, 2019
  • ICICI Lombard Car Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    I had no claim experience with the ICICI LOMBARD GENERAL INSURANCE where i have been using the policy since from lat few years. The premium paid was nominal also the policy coverage is for bumper to bumper. There is a no claim bonus also the road side assistance is with this policy.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jun 08, 2019
  • HDFC Ergo Car Insurance
    "Good claim experience"
    0.5 4.0/5 "Great!"
    I claimed with HDFC Ergo because there was some scratches on my swift dezire car, due the parking area. On that time I just paid Rs. 1000 registration fee remaining amount around Rs. 28,000 was claimed from my car policy . However I paid the premium of Rs.9000 for zero depreciation plan.
    Was this review helpful? 1
    , delhi
    Reviewed on Jun 08, 2019
  • National Insurance Car Insurance
    "Good for money"
    0.5 5.0/5 "Blown Away!"
    I have Santro car it was manufactured in 2015, I took comprehensive plan its fully covered. I believe last time I paid Rs. 5500 of premium, however is no claim but they have road side assistance, 24 hours service with other benefits like no claim feature.
    Was this review helpful? 1
    , kochi
    Reviewed on Jun 06, 2019
  • Bajaj Allianz Car Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    I have purchased the car insurance policy with the BAJAJ ALLIANZ GENERAL INSURANCE and using it since from last one year. I had no claim experience with this policy and also policy coverage with this policy is for basic with this policy.
    Was this review helpful? 1
    , bhubaneshwar
    Reviewed on Jun 03, 2019
  • review Car Insurance
    "Policy is very good"
    0.5 5.0/5 "Blown Away!"
    Bought my car insurance from Kotak Mahindra Insurance. Not any particular reason for choosing the company. I have a claim experience. The given IDV value is Rs. 4.60 lakhs and i am satisfied with it. I have paid the premium amount of Rs. 12000. They are providing a no claim bonus, road side assistance and its a zero depreciation.
    Was this review helpful? 1
    , noida
    Reviewed on Jun 03, 2019
  • ICICI Lombard Car Insurance
    "GOOD"
    0.5 5.0/5 "Blown Away!"
    I have been using the car insurance policy with the ICICI LOMBARD GENERAL INSURANCE where i have been using it since from last 1-2 years and i had no claim experience with this policy. The premium paid was nominal also the IDV value is good with this policy. There is a no claim bonus coverage also the bumper to bumper coverage is applicable.
    Was this review helpful? 1
    , chennai
    Reviewed on May 31, 2019
  • ICICI Lombard Car Insurance
    "Smart Protection"
    0.5 4.0/5 "Great!"
    I insured my car with ICICI Lombard I paid the cost of Rs. 14,000 it has the term of two years. I have zero depreciation cover, I got my policy paper on time. The insurer quoted the value of 80% from the total value. I have swift dezire car it was 2017 model.
    Was this review helpful? 0
    , hyderabad
    Reviewed on May 31, 2019
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