What is Motor Insurance?
Motor insurance is general insurance that is meant for vehicle owners to insure their motor vehicles from incurring any kind of financial losses that may arise due to damage or theft of the motor vehicle. It is done on motor vehicles such as cars, trucks, motorcycles and other road vehicles. Damages to motor vehicles include any kind of physical damage or bodily injuries which result from traffic collisions and against liability that could also arise from incidents in a vehicle. There are 3 types of motor vehicle insurance: private car insurance, two-wheeler insurance and commercial vehicle insurance.
Who Should Buy Motor Insurance?
Getting motor insurance for one’s motor vehicle is important because it gives protection to the vehicle owner in case of any kind of damage to the vehicle and also in some cases it pays for any third-party liability determined as per law against the owner of the vehicle. A person who regularly uses his or her personal vehicle for traveling daily or a person involved in cab services or any other person as such has to necessarily buy motor insurance. Persons who are into transportation businesses buy motor insurance or get their motor vehicles insured so that they are in relief in case of any kind of damages to their vehicles and also that they need not worry about arranging finances to get their damages repaired or pay the other parties who might have had got damaged due to vehicle which is insured or pays compensation to those people who were injured due to the accident when in the vehicle etc.
Motor Insurance-Related Queries
Often people ask who are the main persons who need to get their motor insurance on their motor vehicles and the amount or the time period for which they have to get their vehicles insured. One must get their motor vehicle insured only to an extent where one is capable of paying the premium from time to time which depends on the income earning capacity of the person getting insured or premium paying capacity every month, quarter, half-yearly or yearly once. It is advised to people getting their insurance to first study in detail about every insurance policy, their premium payable and time period, policy payout, the extent of damages payable and for the number of years one has to pay the premiums, etc.
Why Do You Need Motor Insurance?
The first main reason why taking motor insurance is needed is because driving a motor vehicle in a public place without insurance is a punishable offense under the Motor Vehicles Act, of 1988. And another reason why one needs to get motor insurance is the responsibility towards the motor vehicle one generally the vehicle owner will be legally liable for any damage caused to a third party’s life or property as a result of using the vehicle in a public place. At that point in time, one cannot say or does not have any right to say that his motor vehicle had not been insured. Hence getting one’s motor vehicle insured is of utmost priority.