Motor insurance, also known as vehicle insurance, covers cars, two-wheelers, and other road vehicles. A comprehensive motor insurance policy protects your vehicle from damages caused by accidents, natural disasters, and other unforeseen events.

Beyond coverage for your vehicle, motor insurance also provides essential protection for third-party liabilities, which is mandatory by law. Whether you're filing a claim or purchasing a new policy, here's a simple step-by-step guide to help you navigate through both processes with ease.

Types of Motor Insurance Plans

1. Comprehensive motor insurance

A comprehensive vehicle insurance policy offers dual protection by covering third-party legal liabilities and any losses or damages to your insured vehicle caused by accidents or mishaps. It also safeguards your vehicle against both natural and man-made disasters, including road accidents, fire, theft, earthquakes, storms, floods, and more.

2. Standalone OD cover

Introduced by the IRDAI, the standalone Own Damage (OD) cover policies allow vehicle owners to get coverage against the losses or damages caused to their vehicles due to natural or man-made disasters. This type of policy can be purchased by those who already have a third-party cover from a different or the same insurer.

3. Third Party Motor Insurance

Third-party motor insurance is mandatory in India as per the law. It protects the policyholder against legal liabilities arising due to an accident involving his/her vehicle. It means that in case an insured vehicle causes bodily injuries, death, or property damage to a third party, the insurer will take care of the legal liability.

Tips to Buy a Motor Insurance Plan

Understand the Types of Coverage - Choose between third-party, comprehensive, and standalone own-damage (OD) covers. A comprehensive plan offers full protection, covering both your vehicle and third-party liabilities, while a third-party plan only covers legal liabilities.

Evaluate Add-Ons - Consider adding optional coverages like zero depreciation, engine protection, or roadside assistance to enhance your policy. These add-ons provide extra protection and can help reduce out-of-pocket expenses in case of an accident.

Check the Insurer’s Network of Garages - Ensure the insurer has a large network of authorized garages for easy claim settlements. A wide network will provide more flexibility in choosing repair centers.

Review Claim Settlement Ratio - Look for insurers with a high claim settlement ratio, as this indicates their reliability in paying out claims efficiently.

Compare Premiums - Compare premiums from different insurers, but don’t compromise on coverage just to save a few bucks. Consider the value offered for the premium amount, including coverage limits and service quality.

Consider a No-Claim Bonus (NCB) - If you have a good driving record and haven’t filed any claims in the previous year, you could be eligible for a No-Claim Bonus (NCB), which can reduce your premium.

Check for Discounts - Many insurers offer discounts for adding multiple vehicles, installing anti-theft devices, or being a long-term customer. Be sure to ask about any discounts that may apply to you.

Read the Terms and Conditions - Carefully read the policy document to understand the terms, conditions, exclusions, and the claim process. This will help you avoid surprises during a claim.

Evaluate Customer Support - Choose an insurer with excellent customer service and support, available 24/7, to assist you with claims and policy-related queries.

Renew on Time - Always renew your policy before it expires to avoid any lapse in coverage, which could leave you vulnerable to financial loss in case of an accident.

Also Read: Difference Between Zero Depreciation & Comprehensive Insurance

How to Make a Motor Insurance Claim: A Step-by-Step Guide

Claiming your motor insurance policy depends on the type of claim you're filing:

Third-Party Claim

If your vehicle causes personal injury or property damage to another person (the third party), the claim will fall under third-party insurance. To initiate a third-party claim, ensure the accident is reported immediately to both the police and your insurance company. If you’re the victim, gather the insurance details of the responsible vehicle and inform the insurer of that vehicle.

Own Damage Claim

If your insured vehicle is damaged in an accident, you are eligible to make an own damage claim, provided you have a comprehensive policy. Immediately inform the insurance company and, if necessary, the police. This allows them to send a surveyor to assess the damage.

Important Tip: Don’t move the vehicle from the accident site without permission from the police and your insurance provider. Once you get approval, you can remove the vehicle for repairs. If your policy offers cashless service, the insurance company will settle the repair costs directly with the workshop.

Theft Claim

In case your vehicle is stolen, you must inform both the police and your insurance company as soon as possible. Additionally, notify the transport department.

Documentation: For any claim, it’s crucial to gather the necessary documents and submit the claim form along with them. For theft claims, remember that you may need to surrender the vehicle keys to your insurer.

FAQs on Motor Insurance

What is the difference between a third-party claim and an own damage claim?

A third-party claim is when your vehicle causes injury, death, or property damage to someone else. An own damage claim is when your vehicle gets damaged in an accident or due to other covered events.

What should I do immediately after an accident?

If you're involved in an accident, first ensure everyone is safe. Then, immediately report the accident to the police and your insurance company. If it’s your damage claim, don’t move the vehicle without permission from the authorities and your insurer.

How do I file a third-party claim?

For a third-party claim, ensure the accident is reported to the police and your insurance company right away. If you are the victim, obtain the insurance details of the responsible vehicle and report the incident to their insurer.

Can I get a cashless service for repairs?

Yes, if your policy offers cashless service, you won’t need to pay upfront for covered repairs. The insurance company will directly settle the costs with the workshop.