What is Vehicles Insurance?
As per Motor Vehicles Act, A motor vehicle in a public place is potentially a dangerous and lethal instrument. Unlike other properties which may be insured or not at the option of the owner, a motor vehicle is required by law to be insured in respect of the user's liability for death, bodily injury or damage to property of third party. This is valid for all kind of vehicles: two wheeler, four wheeler or commercial vehicles.
A Motor Insurance or Vehicles Insurance can be broadly classified in 2 types:
Third Party Cover:
Third party insurance covers you against death or injury (caused by your vehicle) to pedestrians, passengers and pillion riders, occupants of other vehicles, and outsiders other than passengers. This is mandatory by law for any vehicle on Indian Road.
In addition to covering the damage done to third party in the form of injury, death or damage to vehicle, our own vehicle also get damaged; Driver and his co-passenger also get hurt during any accident or explosion or lighting etc. Hence it becomes important to have a comprehensive cover. Many plans also covers the towing charges, theft and burglary in such cases.