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What are the types of motor insurance policies?

By Finserv MARKETS - Jul 31,2019
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Type of motor insurance

In India, people mostly end up living in localities that are at quite a distance from their place of work usually owing to exorbitant prices of residential properties near commercial areas. In a bid to get to work quickly, in a country where roads are especially congested during office hours, a vehicle is often one of the first major purchases made by an individual.

However, owing to the same congestion which is often compounded by the bad quality of roads, a motor insurance is often a pressing necessity owing to its ability to act as a cushion against unexpected accidents or unforeseen mishaps. The Bajaj Allianz Two Wheeler Insurance, available on Finserv MARKETS, provides round-the-clock bike spot assistance, which ensures that no matter where you are or what time it is, you will have access to timely assistance with the best two wheeler insurance in India.

In a bid to access options for a motor insurance policy in an easy and quick manner, you may find yourself turning to the internet to compare and find the best policy you require. When you first begin searching, the technical jargon might leave you bemused. However, the further along you get in your search, you realize that it isn’t getting any easier to understand what you are being offered in terms of coverage. Don’t worry! We will help you out with the jargons. By the time you are done reading this, you will know what you need to look for while searching for the best two wheeler insurance in India. Once your requirements are narrowed down, you can browse online and find the two-wheeler insurance quote that is most appropriate for you.

Motor insurance policies are usually divided into types, based either on the kind of insurance policy or coverage you require; or they are divided based on the type of purpose you plan to use your vehicle for. The latter refers to whether you wish to use your vehicle for a private purpose, or for a commercial purpose. Commercial vehicles usually refer to vehicles like trucks which are used for logistical purposes, or taxis that are used for commercial purposes. Simple enough? Good. Moving on, let’s talk about the types of motor insurance covers available based on the coverage you require.

Based on the insurance coverage they provide, policies are broadly divided into three types: Third Party Liability Coverage, Comprehensive Insurance, and Add-on Covers.

Read onto learn about each of them, and take an informed decision on the type of motor insurance you require.

1.Third Party Liability Coverage:

The third-party liability coverage is a mandatory requirement as per law, as it protects you from legal issues that may arise in case of an accident where your vehicle causes injury to another person or damages their property. While this particular form of insurance is extremely useful in case of unfortunate events, it in no way protects you or your vehicle from any injuries or damages that might be sustained in case of an accident. Third party liability coverage covers only minimal risks and does not protect the vehicle itself. By opting for this type of motor insurance, you would not be compensated even if your vehicle was stolen or damaged beyond repair.

2.Comprehensive Insurance:

A comprehensive insurance is the most preferred form of motor insurance, since many vendors offer third-party liability coverage as a part of this policy while also providing you with personal accident cover which gives you the option to file claims in case of damage to your vehicle or even in cases of personal injury, hospitalisation or even death. A comprehensive insurance policy allows you to enhance your coverage through multiple add-ons that increase your coverage in a multitude of ways. With the best two wheeler insurance in India, like the one offered by the Bajaj Allianz Two Wheeler Insurance, available on Finserv MARKETS, you will have access to a network of more than 4,000 garages where you can get your vehicle serviced free of cost. Some of the add-on covers have been listed below.

3.Add-on Covers:

Add-on covers supplement and enhance an existing comprehensive insurance policy. Some of the add-on covers available to you are listed below.

4.Zero Depreciation Cover

The zero depreciation cover is one of the most popular add-on covers that many people choose to incorporate within their existing comprehensive coverage. This cover ensures that no amount is deducted by your insurer at the time of settling claims, owing to depreciation. Depreciation refers to the loss of value in a vehicle over a period of time owing to regular wear and tear, and this value is deducted from the claims settled by an insurer unless you opt for a zero depreciation cover.

5.Roadside Assistance Cover:

A roadside assistance cover ensures that you will always be able to call upon your insurer even if your car breaks down in the middle of nowhere. By opting for this add-on cover, you can now zoom away to remote locations without the worry of being stranded somewhere if you run 0ut of gas or in case of a flat tire. Many insurers arrange for your car to be towed to the nearest garage which is covered under their network, thereby allowing you to save the hefty sum that you would have had to pay upfront. For instance, the Bajaj Allianz Two Wheeler Insurance available on Finserv MARKETS, provides you with 24×7 roadside assistance. No matter where you are, your policy has you covered.

6.Engine and Electronic Circuit Cover:

Opting for this type of insurance cover ensures that your insurer will pay for the expenses incurred when there is damage to the vehicle’s engine or electronic circuit. The Bajaj Allianz Two Wheeler Insurance, available on Finserv MARKETS, you also get cover for any repairs your bike might need, or to replace any parts that may have been damaged. Check Finserv MARKETS right now to view your customised two wheeler insurance quote.

These are just a few of the add-on covers that you could benefit from while opting for a motor insurance cover. Now that you have an idea of the terms and the types of motor insurance covers that are available in the market, you have a better chance of deciding for yourself as to which insurance cover suits your requirements the best. Visit the Finserv MARKETS website to learn more about the types of motor insurance that act as the perfect cushion against any unforeseen accidents, and to check the two wheeler insurance quote you may have access to as a registered customer of Finserv MARKETS.

“Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere”!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522