What is Car Insurance?

Car Insurance is a type of non-life insurance that comes under the Motor Vehicle Insurance Policy. It covers 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. In India, Car Insurance is mandatory under the Motor Vehicles Act, 1988.

Benefits of Car insurance

• Loss or damage by accident, fire, lightning, self-ignition, external explosion, burglary, housebreaking or theft, malicious act
• Liability for third party injury/death, third party property and liability to paid driver
• On payment of appropriate additional premium, loss/damage to electrical/electronic accessories

What is Car Insurance Premium?

To get a Car Insurance, an amount of money is to be paid to the insurance company by the policy holder. The premium is an important aspect. In case of failure in payment of the premium the policy will be considered as invalid. Premium can be paid annually, half yearly, or monthly.