Protect that precious vehicle of yours
TABLE OF CONTENTS
• The Indian Automobile Market
• Automobile production & Supply
• The Importance of Motor Insurance
• Types of Motor Insurance
• Private Car Insurance
• Second Hand Car Insurance
• Commercial Vehicle Insurance
• Two Wheeler Insurance
• Motor Insurance Policies Online.
THE INDIAN AUTOMOBILE MARKET
• The automotive industry in India is one of the larger markets in the world.
• India's passenger car and commercial vehicle manufacturing industry is
the sixth largest in the world, with an annual production of more than 3.9
million units as of 2012.
• As of 2010, India is home to 40 million passenger vehicles. More than 3.7
million automotive vehicles were produced in India in 2010 (an increase of
33.9%), making the country the second (after China) fastest growing
automobile market in the world in that year. According to the Society of
Indian Automobile Manufacturers (SIAM), annual vehicle sales are
projected to increase to 4 million by 2015.
• India had previously been one of the fastest growing globally, but is
currently experiencing flat or negative growth rates. The dip happened in
2013, a very bad year globally for major industries.
• Source : Wikipedia & SIAM.
AUTOMOBILE PRODUCTION DETAILS
Market Share – Passenger Cars
IMPORTANCE OF MOTOR INSURANCE
Motor insurance (also known as vehicle / car / auto
insurance) is insurance purchased for cars, trucks, and
other road vehicles. Its primary objective is to provide
protection against physical damage resulting from
accidents, thefts & unforeseen circumstances.
Motor insurance in India 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 vehicle
while driving and also for passengers and third party
Motor Insurance(Third Party) is compulsory on
purchase of new vehicles whether acquired for
commercial or private usage as per Motor Vehicle Act
in India. One can be penalized for driving without a
Cars are an expensive investment for an individual. An
accident can turn this investment into a huge loss as
well. Hence it is important to have motor insurance.
MOTOR INSURANCE BASICS
Motor Insurance covers :
• Accident caused by external means.
• Man made calamities, such as Explosion, Burglary, Theft, Riots &
Strikes, Malicious Acts, Terrorism, etc
• Natural calamities like Earthquakes, Fire, Floods, Typhoons etc.
• While in Transit by rail/road, air or waterway.
• Third party legal liability
• Cover for an owner driver in case of death
Motor Insurance doesn’t cover:
• Normal wear and tear of the vehicle due to usage
• Loss or damage due to depreciation of vehicle
• Electrical / Mechanical breakdown
• Wear and tear of consumables like tires and tubes
• Loss or damage incurred outside the geographical area
• Loss or damage caused as result of driving under intoxication (DUI)
• Loss or damage caused to the vehicle by a unauthorized person
without valid driving license
• Loss or damage due to nuclear risks
TYPES OF MOTOR INSURANCE POLICIES
Second Hand Car Insurance
Private Car Insurance
Motor/ Vehicle Insurance
Third Party Insurance
Two Wheeler Insurance
Commercial Vehicle Insurance
PRIVATE CAR INSURANCE
It is compulsory for all the Private/ personal car
owners to have a motor insurance policy . It is
insurance for vehicles not used for commercial
purposes. The amount of premium depends on
the make and value of the car, state where the car
is registered and the year of manufacture.
Private Car Insurance Policy not only covers your
car against the mandatory third party liability but
also against the losses caused due to fire, theft,
explosion, burglary, riots, strikes, earthquakes,
flood, cyclones, accidents, malicious acts and
TWO WHEELER INSURANCE
India has one of the largest 2 wheeler production
market. Two-wheeler (motorcycle or scooter) is
perfect for quick mobility and convenience. But
steering it around in today’s times is also risky.
A 2 Wheeler Vehicle Insurance Policy offers a
comprehensive insurance cover, which not only
covers you for the liability arising out of the Third
party but covers you against the loss or damage to
your own two-wheeler.
COMMERCIAL VEHICLE INSURANCE
A Commercial Vehicle Insurance Policy provides
cover for all vehicles which are not used for
personal purposes, rather for commercial purposes
like good carrying vehicles like the Trucks, Tempos
THIRD PARTY MOTOR INSURANCE
This type of policy only covers the third person
who has been damaged or injured in an accident
where the owner is accountable. It covers the
insured person's liability to third parties' loss
caused by an accident involving the auto vehicle
of the insured. This refers to the minimum risks
that are to be covered under the Auto Vehicles
Act 1938 (Act Liability). It doesn't cover the
expenses, damage, theft or injuries of the owner.
This type of plan is made compulsory by the law
Liability Insurance covers third party liability
for bodily injuries and/or death and property
damage. Personal accident cover for owner
driver is also included.
SECOND HAND INSURANCE
Insurance for your second hand car is as good
as insurance for your private vehicle. However
if you buy a second hand car, you need to
renew its insurance policy.
BUY/RENEW CAR INSURANCE ONLINE
• Major Car Insurance companies are providing car insurance policies online.
• Car owners can register & buy a new car insurance policy online.
• Existing Car owners can renew their car insurance policy from the same company or choose another.
• Buying & Renewing policies online is beneficial, since it requires no paperwork & can be done in 15-20