Motor Insurance in India


Motor Insurance gives protection to the vehicle owner against the damage to his/her vehicle and pays for any third party liability determined as per law against the owner of the vehicle. Driving a motor vehicle without insurance in a public place is a punishable offence in terms of the Motor Vehicles Act, 1988.

Types of Motor Insurance Cover

Broadly there are two types of motor insurance cover:

  1. Liability only policy( In this case damage to your vehicle will not covered)
  2. Package Policy ( Liability only policy + Damage to owner’s vehicle usually called O.D Cover)

Motor Insurance covers the damage to the vehicle due to following perils:

  1. Fire, Explosion, Self Ignition, Lighting , theft
  2. Riot & Strike
  3. Earthquake, Flood, Storm, cyclone and other damage through natural calamities
  4. Malicious Act
  5. Terrorism Acts
  6. Transit by Rail/Road
  7. Landslide/Rockslide

 Motor Insurance excludes the following contingencies :

  1. Not having a valid Driving License
  2. Electrical and Mechanical Breakdowns
  3. Under the influence of liquor /drugs
  4. While the vehicle is used for unlawful purposes