What is Motor Insurance?
Motor insurance is a coverage bought for vehicles. The objective is to give complete protection against accidental physical damage and Thirdy Party personal injury / death / property damages. It gives coverage against accidental loss or damages to own vehicle or a third party. The premium would depend on the make & value of the vehicle, age and its claims history.
Types of Policies:
- Liability Only Policy: As per Motor Vehicles Act, this insurance is compulsory. This covers owner's liability to Third Party for bodily injury and / or death and Property Damage.
- Package Policy: This covers loss or damage to the vehicle insured in addition to coverage under Liability Only Policy.
Loss or Damage to the vehicle Insured:
The Insurer will indemnify the Insured against loss or damage to the vehicle insured hereunder and/or its accessories whilst thereon by:
- fire explosion self ignition or lightning
- burglary housebreaking or theft
- riot and strike
- earthquake (fire and shock damage)
- flood typhoon hurricane storm tempest inundation
- cyclone hailstorm frost
- accidental external means
- malicious act
- terrorist activity
- whilst in transit by road rail inland waterway lift elevator or air
Provided ALWAYS that the Insurer shall not be liable to make any payment in respect of:
- consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failures or breakage's nor for damage caused by overloading or strain nor for loss or damage to accessories by burglary, housebreaking or theft unless the vehicle insured is stolen at the same time.
- damage to tyres and tubes unless the vehicle insured is damaged at the same time in which case the liability of the Company is limited to 50% of the cost of the replacement.
- any accidental loss or damage suffered whilst the insured or any person driving the vehicle with the knowledge and consent of the insured is under the influence of intoxicating liquor or drugs.