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Motor Insurance Protect that precious vehicle of yours


Table of Contents • • • • • • • • •

The Indian Automobile Market Automobile production & Supply The Importance of Motor Insurance Types of Motor Insurance Private Car Insurance Second Hand Car Insurance Commercial Vehicle Insurance Two Wheeler Insurance Motor Insurance Policies Online.


The Indian Automobile Market • The automotive industry in India is one of the larger markets in the world. • India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units as of 2012. • As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second (after China) fastest growing automobile market in the world in that year. According to the Society of Indian Automobile Manufacturers (SIAM), annual vehicle sales are projected to increase to 4 million by 2015. • India had previously been one of the fastest growing globally, but is currently experiencing flat or negative growth rates. The dip happened in 2013, a very bad year globally for major industries. • Source : Wikipedia & SIAM.


Automobile Production Details

Market Share – Passenger Cars


Importance of Motor Insurance Motor insurance (also known as vehicle / car / auto insurance) is insurance purchased for cars, trucks, and other road vehicles. Its primary objective is to provide protection against physical damage resulting from accidents, thefts & unforeseen circumstances. Motor insurance in India covers for the loss or damage caused to the automobile or its parts due to natural and man-made calamities. It provides accident cover for individual owners of the vehicle while driving and also for passengers and third party legal liability. Motor Insurance(Third Party) is compulsory on purchase of new vehicles whether acquired for commercial or private usage as per Motor Vehicle Act in India. One can be penalized for driving without a valid cover. Cars are an expensive investment for an individual. An accident can turn this investment into a huge loss as well. Hence it is important to have motor insurance.


Motor Insurance Basics Motor Insurance covers : • • • • • •

Accident caused by external means. Man made calamities, such as Explosion, Burglary, Theft, Riots & Strikes, Malicious Acts, Terrorism, etc Natural calamities like Earthquakes, Fire, Floods, Typhoons etc. While in Transit by rail/road, air or waterway. Third party legal liability Cover for an owner driver in case of death

Motor Insurance doesn’t cover: • • • • • • • •

Normal wear and tear of the vehicle due to usage Loss or damage due to depreciation of vehicle Electrical / Mechanical breakdown Wear and tear of consumables like tires and tubes Loss or damage incurred outside the geographical area Loss or damage caused as result of driving under intoxication (DUI) (alcohol/drugs) Loss or damage caused to the vehicle by a unauthorized person without valid driving license Loss or damage due to nuclear risks


Types of Motor Insurance Policies

Second Hand Car Insurance

Private Car Insurance

Liability Insurance

Motor/ Vehicle Insurance

Third Party Insurance

Two Wheeler Insurance

Commercial Vehicle Insurance


Private Car Insurance

It is compulsory for all the Private/ personal car owners to have a motor insurance policy . It is insurance for vehicles not used for commercial purposes. The amount of premium depends on the make and value of the car, state where the car is registered and the year of manufacture. Private Car Insurance Policy not only covers your car against the mandatory third party liability but also against the losses caused due to fire, theft, explosion, burglary, riots, strikes, earthquakes, flood, cyclones, accidents, malicious acts and terrorist activities.


Two wheeler Insurance India has one of the largest 2 wheeler production market. Two-wheeler (motorcycle or scooter) is perfect for quick mobility and convenience. But steering it around in today’s times is also risky. A 2 Wheeler Vehicle Insurance Policy offers a comprehensive insurance cover, which not only covers you for the liability arising out of the Third party but covers you against the loss or damage to your own two-wheeler.


Commercial Vehicle Insurance

A Commercial Vehicle Insurance Policy provides cover for all vehicles which are not used for personal purposes, rather for commercial purposes like good carrying vehicles like the Trucks, Tempos and HMVs.


Third PartY Motor Insurance

This type of policy only covers the third person who has been damaged or injured in an accident where the owner is accountable. It covers the insured person's liability to third parties' loss caused by an accident involving the auto vehicle of the insured. This refers to the minimum risks that are to be covered under the Auto Vehicles Act 1938 (Act Liability). It doesn't cover the expenses, damage, theft or injuries of the owner. This type of plan is made compulsory by the law of India.


Liability Insurance

Liability Insurance covers third party liability for bodily injuries and/or death and property damage. Personal accident cover for owner driver is also included.


Second Hand Insurance

Insurance for your second hand car is as good as insurance for your private vehicle. However if you buy a second hand car, you need to renew its insurance policy.


Buy/Renew Car Insurance Online

Major Car Insurance companies are providing car insurance policies online. • Car owners can register & buy a new car insurance policy online. • Existing Car owners can renew their car insurance policy from the same company or choose another. • Buying & Renewing policies online is beneficial, since it requires no paperwork & can be done in 15-20 minutes.


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Motor Insurance