Motor Insurance

Motor Insurance, also called vehicle insurance is necessary to buy for trucks, scooters, cars, bikes, etc. This insurance is compulsory that offers cover if your vehicle gets physically damaged, lost, or theft, etc. due to the human-made or natural disasters.

People save every penny to purchase a vehicle to speed up their rides for work and personal needs. On the other hand, any mishap can happen anywhere without any acknowledgment due to which the individual might have to face a lot of damage to their vehicle and have to pay a huge amount for the repair costs or replacement of the same. Therefore, it is crucial to have motor insurance for your vehicle so as to provide full safety and security.

Motor insurance plan is important as well as compulsory under the Motor Vehicles Act of India, 1988, i.e., if you own a vehicle in India then it is necessary to always carry motor insurance primarily inclusive of the third-party insurance cover.

Slow Down! & Get a Motor Insurance Now: Motor insurance for your vehicle is a mandate, compare plans and features with PolicyX and buy the right plan to save money from unavoidable expenses.

It’s Better to Be Late Than Never: Renew your motor insurance within a few minutes by following some simple steps online, and you are good to go for a long drive with your loved ones.

Takes Care of You & the Third-Party: Motor insurance acts as a boon by providing the right assistance at the right time. Met with an accident and hurt the other person, don’t worry! This insurance will help you to help others.

Importance of Motor Insurance

You need to buy motor insurance when you are purchasing a new vehicle either it is a bike or a car for personal or professional purposes. You may be charged with heavy fines if found without the motor insurance documents while driving by the traffic police.

A motor insurance plan for your vehicle is much needed and mandatory because it helps to protect your hard-earned money from any additional expenses due to sudden miserable events that may cause harm to your vehicle. As the population is increasing day by day, vehicles on the road are also going on increasing and so are the number of accidents, that is why the government of India has made it compulsory to carry motor insurance along with your driving license while driving on the Indian roads.

This insurance plan plays a significant role if the owner of the vehicle is responsible for the damages caused due to an accident to the third-party’s vehicle as it saves the owner’s extra expenses which he/she has to pay to the third-party. A precious investment in your vehicle can be a miserable loss if some unfortunate event takes place, during that situation motor insurance saves a lot of money.

Other cases like theft of the vehicle, damage or loss due to fire, including accidents on the road are covered under the motor insurance plan. That is why this insurance policy is meant advantageous in every manner.

Features & Benefits of Motor Insurance

There are several features and benefits offered by the insurance companies to the customers to keep them and the other party safe and secure on the track. Add-ons are also applicable by paying a little more premium amount. Let’s check out some primary advantages of motor insurance:

  • Instant and hassle-free purchase of policy online without wasting a minute.
  • Online renewal of insurance policy is also available within a few clicks.
  • It provides huge coverage against theft, loss, fire, damage due to accident, etc. for both two-wheeler or four-wheeler.
  • Inclusive of the third-party liability coverage for any damage or loss by the owner of the vehicle.
  • It offers cashless claim benefit to the policyholders for easy claim anywhere, anytime.
  • Network garages are available by insurance companies where you can easily repair your bikes or cars whenever required.
  • You can also choose your preferred garage and reimburse the claim amount later.
  • No Claim Bonus facility is available to the insurance holders and they can also transfer it from any insurer to another insurer.
  • Claim assistance and constant customer support are provided by the companies along with SMS updates for the status of your claim.

Types of Motor Insurance Plan

When it comes to choose and opt for a plan it might be difficult for you to think about what to choose and how? The various features and benefits of the plans will surely help you to go for the right choice and select the best plan for your vehicle.

Let us discuss the types of Motor Insurance in-depth:

Third-Party Insurance

It offers cover against the losses made to the third party by your vehicle, i.e. in case of an accident, the third party insurance plan will provide coverage against all the losses incurred to the third party by your vehicle. Third-party insurance also offers cover for injuries to the third party due to an accident. This plan is only for the third party liabilities and for the policyholder.

Comprehensive Insurance Plan

In this insurance plan, as the name suggests, it offers the benefit to cover for all the damages that occurred to the policyholder’s vehicle including the benefit to cover for the third party damages, i.e. you can enjoy both the benefits in a single plan.

Products Offered by Motor Insurance

Motor insurance provides security to vehicles categorized into two: two-wheeler insurance and car insurance.

1. Car Insurance

Car insurance is an arrangement between the insured and insurer that protects you from spending huge damage and repair costs on the car if the car met with an accident or any harm has happened to the car due to any reason.

Several car insurance companies are available now in India from where you can buy insurance for your car.

It is compulsory to carry the motor insurance policy documents along with you while driving on the roads in India since it takes care of the expenses caused due to any loss or theft or damage of the car. Also, provides you peace of mind in case of a mishap which might include you or a third party.

Types of Cover:

The government has made it mandatory for the car owner to have car insurance. The coverage depends upon the type of plan and the insurer. However, the following are the basic coverage, which you will get with a car insurance policy.

I. Base Insurance Cover

This type of cover provides basic protection to your car against any theft, damage, fire or accident, etc. inclusive of the personal accident cover that makes it a complete coverage plan.

II. Third-Party Liability Cover

This cover is useful in the events when by mistake you have hurt or damage the car of the third party in an accident. By this coverage, you can claim the injuries or damages caused to them or their vehicle and help them to heal with the loss.

III. Roadside Assistance Cover

A new cover with exclusive benefits in road assistance, in this type of cover insurance company, will provide all the benefits as mentioned above in addition to many roadside benefits, for example, repair of minor breakages, malfunction of the car, cover for lost keys, towing of the car if necessary, etc.

2. Two-Wheeler Insurance

Two-wheeler insurance plan offers assistance from a motorcycle or scooter theft, loss, damage, and liability cover. Two-wheeler insurance cover is necessary due to the worse traffic problems and bad situations of Indian roads that may cause uncontrollable accidents and miseries. Online renewal of a two-wheeler insurance policy can be done on the official websites of almost every insurance company after the expiration of the policy.

Two Types of Cover:

I. Comprehensive Cover

The comprehensive insurance plan provides coverage for all the damages that are caused to your vehicle and third party coverage is also included in it.

II. Third-Party Liability Cover

Third-party insurance offers coverage for the damages caused to the third party by your vehicle in which personal Accident cover is also available.

Points To Remember While Buying Motor Insurance

  • The internet is a simple and comfortable mode of buying an insurance plan online. Try to make a purchase online without any hassles and save your precious time.
  • You always need to check the features and benefits offered by a plan and check whether they are syncing with your particular requirements or not as it is crucial to meet the requirements to fulfill the insurance needs.
  • You need to make sure that the insurance will provide cover from physical injuries so that in case of any mishap you do not have to face hurdles for treatment.
  • Check for the policy period of the cover, and whether it commits to the expenses for the repairs of the vehicle.
  • Make sure that the company provides network garages for a quick repair of the damages and making a quick claim at the moment.
  • Hence, you need to do some research to get the best plan. Check for the company’s reputation, claim settlement ratio, network garages, etc.
  • Apart from that, you should read all the terms and conditions of the policy that will help you in choosing the best and hassle-free ways during the time of claim settlement.

Claim Process of Motor Insurance

  • The policyholder needs to provide an in-detailed approximation of the loss and expenses to the insurer.
  • The insurance company will then send an incident inspector for the survey of the whole case and pass on the feedback to the company for further process.
  • The company will review the vehicle and look into the matter deeply subject to the regulations declared.
  • After inspection at the company's level, they will directly issue a letter for the reimbursement of the repair expenses or process the cashless claim from the listed network garage nearest to the policyholder.
  • The documents required for the process depend on vehicle type and the amount of damage occurred. The following are the documents required: driving license, fitness certificate, FIR (First Information Report), repair bills and receipts.

Documents Required for Motor Insurance

Minimum documentation is required for purchasing motor insurance especially when you are buying it online. Let us have a look at the following documents necessary for the purchase.

To Buy a New Policy:

  • Proposal form with details
  • Copy of Registration Certificate (RC) of the vehicle

To Renew the Motor Insurance Plan:

  • Proposal form with details
  • Copy of the former policy document
  • Copy of Registration Certificate (RC) of the vehicle

It is crucial to register the vehicle at the Regional Transport Office (RTO) if an individual is driving a vehicle for any purpose may be of personal or commercial use, etc.

The government of India has made it mandate to carry the insurance documents of your vehicle along with the driver's license while driving on the roads otherwise you might have to pay heavy penalties for not carrying the same. Make sure after purchasing the insurance policy carry the documents whether as a soft copy or hard copy along with you.

Why PolicyX for Motor Insurance?

To purchase the best motor insurance plan it is necessary to compare the various plans of different companies online. At you can browse through several plans and can choose the best one in an easy and hassle-free manner. All you need to do is to follow a few simple steps to compare and get quotes from various insurance companies. These quotes are available for free which assists you to choose the right plan on the go.

At, you can research the different offers issued by the companies and generate quotes by filling the basic details about you. Comparison always makes it simple to choose. After filling the details, you need to make payment to purchase the plan and then you will receive the policy documents in your email inbox right away. This is easy, simple as well as hassle-free.

Compare, Choose & Buy Now!

Motor Insurance: FAQs

1. Why do I need to purchase a Motor Insurance plan?

As it is mandatory by the government under the Motor Vehicles Act of India, 1988, you need to purchase motor insurance whenever you are buying a new vehicle. While driving on roads, you need to carry your driving license along with the motor insurance policy documents as well.

2. What is covered under the Motor Insurance Plan?

The following incidents are covered under the plan: Accidents, theft, losses, fire, riots, strikes, explosions, any natural calamity, terrorism, transportation, etc.

3. What is the difference between the two types of motor insurance plans?

There are two types of motor insurance plans: third-party liability cover and comprehensive cover. The only difference between the two as explained above is third party cover is for the damages of the third party only exclusive of any damage to you and your vehicle, whereas all the damages are covered by the comprehensive cover including you and your vehicle too.

4. What if I do not have motor insurance?

If you do not have a motor insurance policy you will be punished with heavy penalties by the traffic police and also can be sent to jail as it is mandatory to carry a motor insurance policy for your vehicle under the Motor Vehicles Act of India, 1988.

5. Is it easy to buy a motor insurance policy?

Yes, it is very easy and simple to buy motor insurance, there are many companies online from where you can buy the plan of your choice by simply visiting their official websites.

6. If I buy motor insurance online, is it beneficial for me?

Yes definitely, it will benefit you in many ways, such as paperless work is required for the process apart from it you can choose different online modes of payment as options to complete the payments like a credit card, debit card, net banking, BHIM UPI, etc.

7. Is there an advantage of No Claim Bonus (NCB) for motor insurance?

Yes, NCB is applicable in the insurance policy if you are not claiming the benefits even for a single time during the policy term.

8. Can I transfer my No Claim Bonus (NCB)?

Yes, many insurance companies provide the facility of transferring the NCB if any, you may directly contact the company for the same facility.

9. Can online renewal of motor insurance is possible?

Yes, the online renewal of the policy is possible as mentioned above. Visit the website of the company for further details.

10. Can I cancel my motor insurance claim?

Yes, you can cancel the claim anytime by lodging a request to the insurer in-detail via customer support call or writing an email.

Last updated on Aug 2022

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