Motor Insurance

Motor insurance is compulsory to be purchased by all vehicle owners in India. Moreover the motor vehicles ACT of 1988 states that it is mandatory for one and all who purchase a car to invest in motor insurance too from that given moment.

The Motor insurance is of two types:

• The Third Party Insurance
• Comprehensive Insurance

The third party insurance protects the policy holder in circumstances which arise out of bodily injury or death or any damage to its property. But if you personally, as a policy holder want to avail benefits for any damages to you, your co-passengers and your vehicle you should invest in comprehensive car insurance, in addition to third party coverage.

Your insurance policy should cover all the details such as details of your driving licence, car details, model make, location etc. If your insurer fails to mention any of the relevant mandatory details your policy stands null and void, eventually leaving you with no policy cover.

The premiums for the policies are calculated using varied statistical methods by different insurance companies. The premiums for the policy vary according to the model and the price of the vehicle.

In most cases you will receive your insurance certificate right away. If the same does not happen instantly you will receive a cover note which is valid for 60 days from the date of issue. It is a temporary insurance document establishing proof of Insurance and you can register your vehicle with it.