What Is Motor Insurance Policy and How Does It Work?

Motor insurance is basically a type of policy that is specifically designed to offer protection to all types of motor vehicles be it a two-wheeler or a four-wheeler used for both commercial and private purpose. Motor insurance is also known as Auto Insurance. Car insurance or bike insurance is very much important in a country like India since the roads are not safe here, plus the rapid growth of population and numbers of a motor vehicle on the street have certainly influenced in the increase of road accident and casualties resulting from them.

A motor insurance or car insurance policy is basically a legal contract between a motor insurance company and the policy buyer where the first takes the accountability to compensate the latter in case of any loss or damage to the vehicle in the event of an accident. The policy buyer has to pay a certain amount of premium in order to avail the protection from the motor insurance company. You can freely choose the kind of car insurance policy you want to buy and pay the premium for the same. Apart from the basic comprehensive auto insurance policy, car insurance companies offer a number of effective add-on covers by which you can extend the coverage of your vehicle. You will have to pay an additional cost with the basic premium to avail such additional covers with your vehicle insurance plan.

Motor insurance works in a simple way. You can’t figure out how it works for yourself unless you file a claim in case of any damage to your motor vehicle. In order to get any compensation against the loss or damage to your motor vehicle, you will have to register a claim with a company by keeping a few guidelines on the mind. You must make sure that you intimate the insurer as early as the incident takes place. You can also submit some proof to validate the claim. With the additional documents required for filing a claim, you will be required to submit it to your insurer along with a duly filled claim form. After the submission of the claim, the insurance company will send their surveyor to validate the claim and estimate the loss or damage.

After the inspection, if your claim gets accepted by the motor insurance provider, you will get compensation from the company. However, you must keep in mind the exclusions of the particular motor insurance plan that you purchased before registering a claim. Because if you file a claim for a loss or damage that is not covered under your motor insurance plan will result in the rejection of your claim and therefore, you can’t get any financial support from the insurer.

You must also keep in mind that it’s important to renew your car insurance policy at the right time before it expires. Any gap between the policy renewal of motor insurance can cost you to pay extra fine including the premium. You may face legal action for driving without valid insurance. Also, you will no longer be covered if your motor insurance policy expires.