1. What Is Motor Insurance?

Motor insurance is a policy that provides financial protection against losses or damages involving your vehicle—whether it is a car, bike, or commercial vehicle.
It covers accidents, theft, natural disasters, third-party liabilities, and sometimes even personal injuries to the driver or passengers.
In many countries, at least third-party motor insurance is legally mandatory for all vehicle owners.

2. Why You Need Motor Insurance

✔ Legal Requirement – Third-party liability insurance is compulsory, helping you avoid fines and legal trouble.
✔ Financial Protection – Covers repair costs for vehicle damage due to accidents, fire, theft, or natural disasters.
✔ Covers Third-Party Liabilities – Pays for injury, death, or property damage caused to others by your vehicle.
✔ Personal Accident Cover – Offers protection for the owner/driver against accidental injuries or death.
✔ Peace of Mind While Driving – You are protected from unexpected events on the road.
✔ Protects Against Rising Repair Costs – Modern vehicle parts and repairs are expensive; insurance helps manage these costs.

3. Types of Motor Insurance

a) Third-Party Liability Insurance

• Mandatory by law

• Covers damages or injuries caused to a third party

• Does not cover your own vehicle

b) Comprehensive Motor Insurance

• Covers third-party liability + own vehicle damage

• Protects against theft, fire, accidents, natural disasters

• Can be enhanced with add-ons

c) Own Damage (OD) Insurance

• Covers damage to your vehicle only

• Applicable to vehicles purchased after a certain date (in some countries)

• Often paired with third-party insurance

d) Standalone Third-Party Insurance

• Only third-party coverage, no own damage cover

• Ideal for older or low-value vehicles

e) Commercial Vehicle Insurance

• Covers trucks, buses, taxis, autos, delivery vehicles, etc.

• Includes protection against business-related risks

f) Two-Wheeler Insurance

• Specifically for motorcycles and scooters

• Available as annual or long-term plans

Common Add-Ons (Optional Riders)

✔ Zero Depreciation Cover – Full claim without depreciation deduction
✔ Engine Protection Cover – Covers engine damage due to waterlogging/oil leakage
✔ Roadside Assistance – Towing, fuel delivery, on-spot repair
✔ Return to Invoice – Gets you full invoice value if vehicle is stolen or total loss
✔ NCB Protection – Keeps your No-Claim Bonus intact even after a claim