September 24, 2023
Pankaj Verma-SBI General

Motor Insurance: Why do you need it, know its advantages

The purchase of a vehicle involves emotional and financial investment in the Indian parlance and owners often undertake precautionary measures to protect it from damages. However, unforeseen situations like accidents, damage due to monsoons, etc. are sometimes inevitable. A comprehensive and adequate motor insurance can secure the vehicle owner’s finances in such situations. It provides myriad benefits including coverage for cost of repair, coverage for catastrophes such as thefts, natural disasters, vandalism, and so on, as well as third-party liabilities. The vulnerability of such risks only gets higher during monsoons which is why vehicle owners need to be immensely prudent.

Speaking on the significance of motor insurance, Pankaj Verma, Head – Underwriting, SBI General Insurance says “It is crucial to understand the criticality of insurance and how it can cover a variety of issues relating to any type of damage to a vehicle. It is an advisable option to prevent financial stress by covering the vehicle with comprehensive insurance that provides cover for own damage as well as third-
party liabilities. However, simply purchasing insurance is insufficient; you must also renew it on time. It is a wiser decision to have an adequate insurance plan that shields you during any mishap to your vehicle.”

In India, the Motor Vehicles Act, 1988 mandates all vehicles to have a valid third-party liability policy. So, if you own a vehicle, you need an insurance plan for it, covering the mandated third-party liability. However, to further mitigate losses that are frequently not covered by standard motor insurance coverage, one must be equipped with necessary add-ons such as Depreciation Reimbursement, NCB (No Claim Bonus) Protection, Basic Roadside Assistance, Engine Guard Inconvenience Allowance Cover for consumables, emergency medical expense, enhanced Personal Accident cover to passengers etc.. These extended coverages can be added to a vehicle policy for a small fee and can be extremely beneficial. The motor insurance industry has experienced significant changes in recent years. As a result of digitization, insurers are now offering products that effectively meet the needs and expectations of current and potential customers and are even available online for the easy purchase. It is advisable to undertake diligent research prior to buying any insurance policy to get best protection at affordable

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