Vehicle insurance is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic.
With the continuous increase of vehicle costs as well as the cost of spare parts and repairs, motor insurance plays an effective role in mitigating the hardships faced by vehicle owners in case of an accident.
Owners of the vehicle, Financiers, or Lessee who have insurable interest in a motor vehicle can take the motor insurance policy to protect themselves from financial liability caused by damage to the vehicle and to cover third party liability claims.
Motor insurance gives protection to the vehicle owner against (i). damages to his/her vehicle and (ii). pays for any Third Party Liability determined as per law against the owner of the vehicle. Third Party Insurance is a statutory requirement for all the vehicles playing on public roads in India. The owner of the vehicle is legally liable for any injury or damage to third party life or property caused by or arising out of the use of the vehicle in a public place.
