Insurance
•01 min read
Owning a vehicle is a matter of pride and convenience, but it can come with certain financial responsibilities. Besides everyday obligations like fuel, repair work, and maintenance, you also need a motor insurance policy to protect yourself from unexpected incidents and financial losses.
This Financial Literacy Week, let’s understand what motor insurance is and why you need it as a part of your financial planning.
Motor insurance plays a vital role in protecting you and your vehicle against any unforeseen events like accidents, theft, natural disasters, and more. It safeguards you from financial losses in such circumstances.
The extent of protection you’ll get depends on the type of motor insurance plan you choose. Let’s quickly understand the various types of plans:
Plan type | What does it cover? |
Comprehensive Motor Insurance | This plan offers holistic protection, by covering damage caused to your vehicle as well as any third-party liabilities. |
Third-party Motor Insurance | This plan covers third-party bodily injury and property damage. |
Own-damage Motor Insurance | This plan simply covers your vehicle. |
Motor insurance acts as a safety net against financial losses. Here’s why you should get a motor insurance plan for your vehicle:
In India, having a valid motor insurance policy for your vehicle is mandatory by law. Not having one when you’re driving the vehicle can lead to fines.
Motor insurance covers the cost of repairs or replacement in the case of unexpected events like accidents, natural disasters, theft, and more. It also protects you from financial liabilities if your vehicle causes any damage or injury to a third-party or property.
Many motor insurance plans offer a personal accident cover that gives you financial compensation in the case of death or injury.
In all, having motor insurance will give you peace of mind and confidence, knowing that you’re well-protected whilst driving your vehicle on the road.
