Motor Insurance

Motor Insurance

Motor Insurance is a contract between a vehicle owner and an insurance company in which you pay a fixed amount (premium) for a policy that will give you financial protection against losses if the insured vehicle is stolen or damaged. Motor insurance covers theft of vehicle, damage to vehicle, damage that your vehicle causes, plus protection against liability in case you are sued after an accident.

Why Motor Insurance

Motor Insurance in India is mandatory by law (India Motor Vehicles Act, 1988). Any vehicle running in public place has to be insured against third party losses i.e. Death, Injury and Property Damage.

Types of Motor Insurance Cover

  • Third Party Liability only cover
  • Third Party Liability and theft cover
  • Comprehensive cover including third party liability, theft and own damage

Motor Insurance Does Not Cover

  • Wear and tear due to normal ageing of the vehicle
  • Damage done to or by the person driving without a valid and effective license
  • Loss or damage by war
  • Mechanical or electrical breakdown

Tax Benefits

  • No, there are no tax benefits from Motor Insurance.