Insurance is a financial product that protects you from financial losses in the event of an unexpected event. When you buy insurance, you agree to pay a premium to an insurance company. In return, the insurance company agrees to pay you a certain amount of money if the event you are insured against happens.
There are two main types of motor insurance policies in India: third-party and comprehensive. Third-party insurance only covers damage to third parties, while comprehensive insurance covers damage to your own vehicle as well. The Motor Vehicles Act, of 1988, makes it mandatory for all motor vehicles operating in India to have a valid motor insurance policy. The minimum requirement is that a vehicle must have at least third-party liability insurance.
The premium of insurance is the major factor most people consider in choosing the policy of a company. The premium for motor insurance varies depending on the type of policy you choose, the make and model of your vehicle, your driving history, etc. But in a majority of cases, people consider only the price/ premium of the Insurance policy without even looking at what is included in the policy coverage.
Insurance company: There are many different insurance companies offering motor insurance policies in India. It is important to compare the policies offered by different companies before choosing one. Some factors to consider when comparing insurance companies include the premium, the coverage, the claim settlement ratio, the claim settlement process, and the customer service.
Premium: The premium is the amount of money you pay for the insurance policy. The premium will vary depending on the type of coverage you choose, the make and model of your vehicle, your driving history, and your age.
Coverage: Coverage is the amount of protection you have in case of an accident. The coverage will vary depending on the type of policy you choose. For example, a comprehensive policy will cover more than a third-party policy.
Add-ons: You can add additional coverage to your motor insurance policy. Some popular add-ons include zero depreciation cover, personal accident cover, and roadside assistance.
Claim settlement ratio: The claim settlement ratio is the percentage of claims that are settled by an insurance company. A high claim settlement ratio indicates that the insurance company is likely to settle your claim quickly and fairly.
Customer service: The customer service offered by an insurance company is important in case you need to file a claim. Make sure to choose an insurance company with a good reputation for customer service.
Note: While taking a motor insurance, make sure that your policy covers insurance for Personal Accident along with Third-party insusrance.
