What is Motor Insurance? Motor insurance is an insurance policy for vehicles such as cars & two-wheelers covering financial loss, damage or theft of a vehicle. Read on to know more.
A motor insurance policy offers coverage to the insured vehicle against financial losses due to an accident or one resulting from other damages.
Motor insurance is an insurance policy that covers the policyholder in case of financial losses – resulting from an accident or other damages – sustained by the insured vehicle. A comprehensive motor insurance policy covers damages to third-party and third-party property along with compensating for own losses as well.
Let’s learn more.
Yes, it is. According to Sec 146 of the Motor Vehicles Act, 1988, it is imperative that you purchase motor insurance prior to taking your vehicle out on the roads. Should you not want to buy a comprehensive insurance plan, getting third-party policy coverage is the bare minimum that you are mandated to acquire for your vehicle to ply.
Usually, vehicles are insured at a fixed Insured Declared Value (IDV). In other terms, IDV is the current value of your vehicle in the market. IDV is higher for a new vehicle and with time it depreciates.
Your area of residence is one of the crucial determinants of motor insurance premiums in India. For instance, should you be a resident of a metropolitan city in the country, chances are vandalism and accidents would be more as compared to smaller Tier 2 and Tier 3 cities. This leads insurance providers to set increased premiums on your motor insurance policy.
Should your vehicle be equipped with additional safety features, such as anti-theft devices, airbags, GPS tracking system, alarm and anti-lock braking features, insurers consider your efforts towards securing your car and set discounted (read affordable) premiums accordingly.
GST taxpayers can't claim any pending input tax credit if this return is not filed by November 30, 2024 for FY 2023-24
