Any person who owns a motor vehicle, be it a two wheeler or four wheeler, would be aware of the law that for using the motor vehicle in public place he needs to buy an insurance for the vehicle. The Motor Vehicle Act makes it mandatory for the owner of a motor vehicle to buy motor insurance.
As per the law, mandatory insurance is required to cover the liability of the owner of the vehicle towards the third parties who get injured or whose property gets damaged by the use of the motor vehicle. The Act prescribes fine/penalties/punishment for not having valid insurance for the vehicle.
Since a motor vehicle is a valuable asset of a person, generally people opt to cover the vehicle against accidental loss or damage. This is possible by availing a Comprehensive Package policy for the vehicle which covers in addition to the mandatory third party liability, damage to the motor vehicle also.
Points to remember while taking Motor insurance
First and foremost, if the vehicle is new, ensure that the delivery is taken only after a Comprehensive Policy is availed. For new vehicles, in some cases, the manufacturer offers free insurance or the dealer helps in getting the vehicle insured. It is important to check the credentials of the insurer, coverage offered under the policy and the premium charged.
Credentials of the insurer relates to the customer service track record of the insurer. This should relate to policy servicing and promptness in claim settlement.
Nowadays, this can be checked easily taking a feedback from a few of your friends or colleagues. In case you are not comfortable with the insurer which is suggested by the dealer you can indicate your choice or you can yourself avail the insurance through an agent of the insurer or through the online portal of the insurer.
In addition to the standard motor insurance cover, there are add-on covers available which offers extended protection. Nil depreciation or Depreciation buy-back, No Claim Bonus protection, Return-to-Invoice, Increased Personal Accident, Accidental Hospitalisation, etc are some of the popular add-on covers. Return-to-invoice would be the most important