Motor vehicle insurance in India

There has been a sudden rise in the population of motor vehicles and motor accidents in the last few years. Much of these are attributable to increase in the number of vehicles. Every vehicle before being driven on roads has to be compulsorily insured. The motor insurance policy represents a combined coverage of the vehicles including accessories, loss or damage to person’s property or life and the third party coverage. Persons driving vehicles may cause losses and injuries to other persons. Every individual who owns a motor vehicle is also exposed to certain other risks. These include damage to his vehicle due to accidents, theft, fire, collision and natural disasters and also injuries to himself. In 1939, Motor Vehicle Act came into force in India. Compulsory insurance was introduced by Motor Vehicle Act to protect the pedestrians and other third parties. Claims for damages may arise due to possession of car, usage and maintenance of car. Motor insurance policy will pay the financial liability arising out of these risks to the insured person.

[...] To bring about a turnaround in the motor insurance sector the Tariff Advisory Committee (TAC) will soon be revising the pricing structure. Changes such as bringing down the bonus amount offered on no claim bonus, as also a cap of Rs 7.5 lakh on third party liability will happen among others once these are approved. Besides the third party premium will be upped significantly. Also if the policyholder plans to change his insurer he may not have to produce a receipt of renewal notice and proof of no claim bonus from the existing insurer. [...]

[...] Act 1988 as any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of not exceeding 25 cubic centimeters MEANING OF MOTOR VEHICLE INSURANCE Motor Vehicle insurance is insurance which consumers can purchase for cars, trucks, and other vehicles. [...]

[...] The usual practice in case of damage of motor vehicle, the insurance company may get the vehicle repaired instead of making cash payment to the insured. What you have to do ? Inform the police about the accident, if third party injury / property damage is/are also involved. Note the names and addresses of witnesses present at the time of the accident. Intimate the Insurance company in writing immediately, quoting the policy number. Obtain a Claim Form and fill it up correctly and completely. [...]