What is the importance of motor insurance?

Auto insurance is important because it is financial protection in case you get into a car accident and damage someone else’s vehicle or injure them. Car insurance can also protect your vehicle from damage caused by an accident or a different covered peril, like falling objects, fire, or theft.

What is vehicle insurance and why is it important?

If your car is involved in an accident that results in damage or loss to the property of any third parties, it is covered under the car insurance. Furthermore, if you face any legal liabilities in case of any bodily injury or death of a third party, your car insurance protects you against the same.

What is the purpose of car insurance?

Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.

Why the insurance is important?

Buying insurance is important as it ensures that you are financially secure to face any type of problem in life, and this is why insurance is a very important part of financial planning. A general insurance company offers insurance policies to secure health, travel, motor vehicle, and home.

IT IS INTERESTING:  What side do you lay a 2 stroke outboard motor on?

What is motor insurance in simple words?

Motor insurance is an insurance policy that covers the policyholder in case of financial losses – resulting from an accident or other damages – sustained by the insured vehicle. A comprehensive motor insurance policy covers damages to third-party and third-party property along with compensating for own losses as well.

What are the 4 types of insurance?

Different Types of General Insurance

  • Home Insurance. As the home is a valuable possession, it is important to secure your home with a proper home insurance policy. …
  • Motor Insurance. Motor insurance provides coverage for your vehicle against damage, accidents, vandalism, theft, etc. …
  • Travel Insurance. …
  • Health Insurance.

What are the 3 types of car insurance?

The three types of car insurance that are universally offered are liability, comprehensive, and collision insurance. Drivers can still purchase other types of auto insurance coverage, like personal injury protection and uninsured/underinsured motorist, but they are not available in every state.

What are the disadvantages of car insurance?

Primary and the major disadvantage of car insurance is your policy not covers the entire vehicle. Only the specific parts of the car are under damage coverage, policyholder needs to verify hidden clauses in the document keenly before buying the policy.

What is role and importance of insurance?

Insurance provide financial support and reduce uncertainties in business and human life. It provides safety and security against particular event. There is always a fear of sudden loss. Insurance provides a cover against any sudden loss.

What are the main principles of insurance?

In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution.

IT IS INTERESTING:  Where does motor learning and motor memory takes place?

What is motor insurance and types?

Motor Insurance deals with the insurance covers for 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 vehicles while driving and also for passengers and third-party legal liability.

What are the features of insurance?

Features of Insurance

  • Sharing of Risk. Insurance is a device to share the financial losses which might befall on an individual or his family on the happening of a specified event. …
  • Co-operative Device. …
  • Value of Risk. …
  • Payment at Contingency. …
  • Payment of Fortuitous Losses. …
  • Amount of Payment. …
  • A large Number of Insured Persons.

What are the features of motor insurance?

Car Insurance Key Benefits & Features

  • Protection from loss of car or damage to your car.
  • Unlimited Liability for Third Party death/ injury Claims.
  • Indemnity for third party property damage up to a limit of Rs. 7.5 lakhs.
  • Personal Accident Cover for you, your paid driver and the occupants in the car.
Motorization