Significance of a motor vehicle insurance policy

Offers coverage for damage to property

The risk of damage to your vehicle during an accident cannot be eliminated. The cost of repairs is indeed an expensive affair and may burn a huge hole in your pocket. Purchasing a motor insurance policy prevents such out-of-pocket expenses as your insurance provider will bear a substantial percentage of the cost of repairs.

Provides coverage for hospitalization costs

In case of severe bodily injuries or fractures, you may require treatment at a hospital. A motor insurance plan financially protects you against exorbitant medical costs. It covers all hospitalization expenses, thus allowing you to focus on speedy recovery, instead of worrying about finance.

Reduces your liability

According to the Motor Vehicles Act, it is mandatory to purchase a third-party liability insurance policy in India. This type of insurance policy reduces your liability in case an accident is caused by you. The insurance provider covers all damages caused to third-party property or injuries caused to a third party. Besides, you are covered from the legal repercussions, if a case is filed against you.

Compensates the family in case of death

Accidents may result in an unfortunate death of the vehicle owner. The family may face financial difficulties in an event of the demise of the policyholder, especially if he/she was the breadwinner of the family. Motor vehicle insurance plans provide a lump sum amount in an event of death. This amount may be used by the loved ones to meet their financial obligations.

Offers coverage for natural and man-made calamities

A vehicle insurance plan also provides financial protection against natural calamities such as flood, typhoon, cyclone, hailstorm, and hurricane, among many others. It also offers coverage against man-made activities such as terrorism, fire, and strikes.