Types Vehicle insurance information in english 2022.
People try to buy the best car, but they are careless in getting the car insured. However, auto insurance not only covers you financial loss but also saves you from many types of legal troubles. In this article, we will know why auto insurance is necessary and what are its benefits. First of all, we will know that how many types of vehicle insurance are vehicle insurance?
Types of Vehicle Insurance 2022
According to the insurance cover you get, there are two types of vehicle insurance-
Third Party Insurance Policy:
The damage caused by your vehicle to any other vehicle, person or property is compensated through third-party insurance policy. In the aftermath of such incidents, it is also the responsibility of the insurance company to deal with the legal procedures that will take place for the determination of compensation.
Along with third party insurance, you also get Compulsory Personal Accident Insurance (Compulsory Personal Accident Insurance) of 15 lakhs. It provides compensation of up to Rs 15 lakh in the event of death or permanent disability of the vehicle owner.
But keep in mind that you do not get compensation for damage caused to your vehicle by a third party insurance policy. For this, you have to take Own Damage Cover , which is available only after taking a comprehensive motor insurance policy.
Comprehensive Motor Insurance Policy:
It is also known as complete insurance policy. In this, the insurance company not only pays the compensation for the damage caused by your vehicle to any other vehicle, person and property, the insurance company also compensates for the damage caused to your own vehicle. That is, you get the benefit of both Third Party Insurance and Own Damage Cover from a comprehensive motor insurance policy . Comprehensive insurance also gives you the facility to add a variety of Add On Covers (subsidiary insurance policies).
Types of Insurance by Vehicle Category
- Car Insurance
- Two Wheeler Insurance
- Commercial Vehicle Insurance
Now let’s know about all three in a little detail-
By taking car insurance, in the event of an accident, there is a facility to compensate for the damage caused to the vehicle. In the event of natural calamities or man-made calamities, compensation for the damage caused to the vehicle is also covered under this insurance. Many companies have now started providing medical insurance as a part of the same, along with car insurance.
Car insurance is also responsible for settling legal liability on damage caused to another person or property (third party) in the event of an accident caused by your vehicle. The driver of the vehicle is also entitled to get the benefit of this third party liability. Not only this, there is an option to take coverage for the passengers/co-passengers as well. However, the more the coverage increases, the higher the premium of the policy.
Two wheeler insurance
Under two wheeler insurance also, the facility of compensation for damage caused to own vehicle along with third party liability is provided. Apart from road accidents, this type of insurance also provides protection against natural and man made calamity. Generally this insurance is for one year.
Long-term two wheeler insurance (LTTW) facility has also been introduced by the Insurance Regulatory and Development Authority of India (IRDAI insurance regulatory and development authority). Can get vehicle insurance for, It is mandatory for insurance companies to give personal accident cover of Rs 1 lakh along with two wheeler insurance. You can also take insurance for the riders by increasing the premium.
Commercial Vehicle Insurance
All vehicles that are used for commercial purposes, such as buses, trucks, ambulances, loaders, canters, multi-utility vehicles, agricultural vehicles, etc. They are insured under commercial vehicle insurance. Commercial vehicle insurance also provides protection against damage caused in the event of an accident or disaster.
In the event of a road accident, apart from indemnification for damage to any other person or property (third party), the facility of claims for death or bodily damage is also a part of this type of insurance policy.
While determining the premium for an insurance policy, the make and model of the commercial vehicle, place of registration, year of manufacture, immediate showroom price, etc., are taken into consideration. and also whether the insurer is a person or a company.
Why Motor Insurance Necessary?
Even if you drive very efficiently, even if you do not need to take a vehicle on congested roads, getting vehicle insurance is always a profitable deal. Having auto insurance saves you from many of these problems-
1. To compensate for damage to another person, vehicle or property:-
According to the Motor Vehicle Act applicable in India, it is mandatory to take third party liability insurance for every vehicle. In the event of an accident, the damage caused by your vehicle to another person (third party) is settled through third party insurance . This damage can be in the form of permanent injury or even death. The compensation for which can be in lakhs or even crores. The damage caused to the property of another person is also paid under the same third party liability insurance.
Even under normal circumstances, if you do not have third party insurance for your vehicle, you can be fined up to Rs 2000 or jail for 3 months if you are caught. Even both the punishments can be given together.
2. For damage caused to own vehicle
In the event of an accident, the cost of repairing the damage caused to your vehicle is covered by First Party Motor Insurance . Due to this, not only you are safe from sudden financial crisis, but also free from the hassles of repairing. Now many companies (especially car companies) have started providing the facility of roadside assistance as well. In this, you are helped only by reaching the spot (at the accident site).
3. Compensation for damage caused by natural calamity or other such event
By having vehicle insurance, you also get help in case of loss due to any natural disaster or human calamities etc.
What type of incidents are involved: Such contingencies include road accident, car fire, natural calamity such as earthquake, landslide, flood, thunderstorm -Storm-hurricane, lightning, etc. are included. Similarly man-made disasters include fire, riots, terrorist attacks, explosions, theft, etc.
Looking at all these facts, it can be said that getting motor insurance is a wise deal in every way.