Motor insurance is mandatory for all two-wheeler and four-wheeler vehicles such as cars, bikes, trucks, scooters that are operating on the Indian roads. Vehicle owners can avail motor insurance even for commercial vehicles. One of the most important documents for all vehicle owners/drivers, a Motor Vehicle Insurance’s main objective is to give complete protection against physical damage sustained by the insured vehicle from natural and man-made calamities. It also provides coverage for third-party liabilities, arising out of any accidental damage, injury, or death of a third party.
A motor vehicle which includes private cars, Motorised Two-wheelers, and Commercial vehicles excluding vehicles running on rails.
Who can Insure?
Owners of the vehicle Financiers or Lessee who have an insurable interest in a motor vehicle.
Insured’s Declared Value (IDV)
(a) In case of a vehicle not exceeding 5 years of age the IDV has to be arrived at by applying the percentage of depreciation specified in the tariff on the showroom price of the particular make and model of the vehicle.
(b) In case of vehicles exceeding 5 years of age and Obsolete models (manufacture of those vehicles which have been stopped by the manufacturers) they have to be insured for the prevailing market value of the same as agreed to between the insurer and the insured.