Motor insurance of your car is the assurance of its full financial protection in case of any accident or damage. It is applicable to both personal and commercial vehicles and is mandatory under the Motor Vehicles Act 1988. The vehicle owner pays a fixed amount (premium) to the insurance company in the form of a policy for a stipulated time period. In case of any mishap, the insurance company gauges the damage and depending on the assessed value of the vehicle, pays compensation to the client. The policy requires a renewal after a fixed period of time. The renewal period is one year for all the companies as per the Motor Vehicle Act. The key benefits of Motor Insurance are:
Compliance with the Motor Vehicle Act
In case of loss or damage of vehicle by natural or man- made calamities such as floods, lightning, storm, landslide, fire, theft, accident, riot, etc. the loss or damage caused to the vehicle will be compensated for by the insurance company as per the value assessed when the insurance contract was agreed to.Many insurance companies offer an added personal accident insurance cover along with motor insurance.
In case of accident, the owner is protected against third party liability damages.