This is an insurance policy that covers the policy holder (owner of vehicle or a person who has insurable interest) in case of financial loss resulting from theft, an accident or damage caused to the insured’s vehicle.
Coverage of motor insurance include
- Comprehensive: This covers damages to third-party and third-party property along with the policy holder’s vehicle. These include loss or damage by accident, fire, lightning, theft and riots & strike.
- Third party or as it is known “insurance ya polisi” covers damages to third-party liability i.e. bodily injury or death caused to a third party and damage to third party property while using your vehicle.Third party cover does NOT cover for repairs of damages to your car
Types of motor insurance include
There are two types of motor insurance which is usually determined by the use of vehicle or type of vehicle i.e.
- Private – As the name suggest it means that the car isused for personal needs
- Commercial – The vehicle isused to acquire or get an income out of it. Such as carrying passengers or goods e.g.trailers, trucks, canters, pick-ups and public service vehicles(PSV) etc.
Types of motor commercial insurance covers
- Own Goods – Covers vehicles against accidental loss or damage whilst being used to transport goods/property belonging to insured.
- General Cartage – Covers vehicles used by the insured for hire and/or reward business such as lorries, trucks, pickups, trailers and motortrade.
- Institutional vehicles – This is a cover that protects vehicles used by institutions for commercial purposes e.g. driving schools
- Motor PSV taxis (chauffeur driven) – This covers passenger service vehicle against accidental loss or damage to their motor vehicle while carrying fare paying passengers for a chauffeur-driven ride.
- Self-drive PSV – This insurance covers Motor vehicles used to carry passengers for hire and reward, specifically used for self-drive.
Extra benefits that come at an extra cost under motor insurance that you need
- Excess protector: In all classes of insurance there is a cost known as EXCESS (first part of the claim). This is the amount that the insured contributes towards settling their claim. With excess protector the insured does not contribute towards the excess.
- Road rescue services: Usually assist motorist in the event of a car breakdown, mechanical failure or an accident. The services can include fuel delivery, battery jump starting, puncture repair, tyre change and road accident rescue and towing.
- Personal accident: This an insurance cover that provides cash benefit in the event of body injury or death caused by an accident. It can payout for things like hospitalization, medical costs, loss of income upto a certain limit.
- Courtesy car:This is a car that the insurer provides during the period your car is undergoing repairs as a result of an accident.
- Political Violence and Terrorism (PVT): is an insurance that covers an individual, an asset or a company against physical loss and damage, as well as business interruption costs as a result of terrorist or political violence act or acts such as civil commotion, sabotage, malicious damage, and consequential looting.
What is NOT covered under motor insurance
- Depreciation, wear and tear, mechanical, electrical or electronic breakdown, failures or breakages.
- Damage to tyres unless damage is caused to other parts of the vehicle at the same time.
- Loss of or damage to the contents being carried in or on the vehicle. For this you take a cover known as Goods in Transit GIT, Carrier’s liability or All risk)
- Consequential loss
- Damage caused by over loading or strain.
- Intentional damage
- Personal injuries to you and immediate family
These are just a few of the exclusions
