Different Types Of Motor Insurance Schemes And Their Benefits

What can be a bit complex than choosing the right type of vehicle for yourself and your family is the choosing process of the right policy from different types of motor insurance schemes available. Protecting one’s vehicle with a motor insurance scheme is mandatory as per the Motor Vehicles Act, 1988 issued by the Government Of India. But buying a motor vehicle insurance policy just for the sake of it cannot be a good decision especially when someone thinks about safety and not wanting to spend from his or her savings unnecessarily. There are quite a few factors to consider seriously when it comes to buying the right one from different types of motor insurance schemes. Without any further delay, let us check out in detail the motor insurance types which are explained below.

The Broad Classification

Well, the most widely known or the broader classification of the types of motor insurance schemes is 1. Third-Party Insurance and 2. Comprehensive Insurance. This classification includes both commercial motor insurance schemes and personal vehicle policies. So by now, one might ponder, if this is known as the broader classification, then is there anything deeper as a sub-classification? Well, before we get to that part, let us first understand the difference between a third-party insurance policy and a comprehensive insurance policy.

1. Third-Party Insurance Policy – it is a type of policy that protects only the third person from bodily injuries and covers only the third-person related damages be it to the vehicle or properties, that is caused due to the insured vehicle’s involvement.

2. Comprehensive Insurance Policy – well, by now you would have made a guess about what the comprehensive type means, right? Yes, the comprehensive type of a motor insurance scheme covers everything that is the self, the owner driver and the third party as well.

Few people prefer the third-party insurance policy as that is enough to keep a person legally compliant when it comes to adhering to the law of having a mandatory motor insurance policy due to the Motor Vehicles Act of 1988 failing which he or she can booked under for a criminal offence act. But if a person prioritizes complete safety, then the comprehensive insurance policy becomes the first choice and he or she will also be a person who doesn’t mind paying a high premium because as they say, safety comes with a cost!

The Sub – Classification Of Types Of Motor Insurance Schemes

As mentioned earlier there is a sub-classification of motor insurance types which is made as per the variant of the motor vehicles and it is explained below in detail.

Two – Wheeler Insurance – well, the name is a complete give-away, is not it? This type of motor insurance policy covers only the two-wheeler type of vehicles. Based on the rider’s preference or requirement, one can choose a third-party two-wheeler insurance or a comprehensive type.

Car Insurance – this type just like the previous one above is completely self-explanatory. All types of car models irrespective of their usage purpose like SUVs or MUVs are covered under this type of motor insurance scheme. And again, even a car insurance policy offers both the third-party type and the comprehensive coverage type.

Commercial Vehicle Insurance – This motor vehicle insurance policy covers all types of commercial vehicles such as bulldozers, tractors, and so on. Commercial vehicles, more than personally owned and used vehicles, are subjected to higher possibilities of damages as such is their usage. So, a commercial vehicle insurance policy can be highly beneficial to all those who own such vehicles.

Feature – Based Classification

After going through in detail about the classification of different types of motor insurance schemes, one might think that should be it, right? Well, did you? The answer is no. There are still some more motor insurance types which are classified or categorized based on their features which are explained below.

Own Damage Insurance – This is a motor vehicle insurance policy that covers only the insured vehicle in case of damages that might occur due to unfavourable situations such as thefts, riots, accidents, and so on.

Personal Accident Insurance – This motor insurance policy covers the owner-driver of the insured vehicle when he or she is hurt or injured while driving the vehicle and additionally, it provides death coverage as well which means, in case the owner-driver dies while driving the vehicle, then the insured amount is provided to the nominee.

So, by now a person would have a fair understanding of the different types of motor insurance schemes and what benefits they offer. Purchasing a motor insurance policy is not just to be legally safe from getting caught in criminal offence cases but it is more about being responsible. And these days, choosing the right policy from different types of motor insurance schemes has become very easy as it can be purchased digitally over the internet.