Motor insurance is a type of insurance coverage that provides financial protection against
damages or losses that may occur to a motor vehicle, such as cars, motorcycles, or trucks. It is
designed to offer financial assistance to vehicle owners in the event of accidents, theft, or other
unforeseen incidents.
Motor insurance generally offers two types of coverage:
1. Third-party liability coverage: This is the minimum legal requirement in most countries. It covers the
vehicle owner against any legal liability for damages caused to a third party, including bodily injury or
property damage.
2. Comprehensive coverage: This is an optional coverage that provides protection against a wider range
of risks. It covers damages caused to the insured vehicle due to accidents, theft, fire, natural disasters,
vandalism, and other unforeseen events. It may also include additional benefits like personal accident
coverage, roadside assistance, and coverage for accessories or modifications.
When purchasing motor insurance, the premium is determined based on several factors, including the
type of vehicle, its age, the insured value, the driver’s age and driving history, the geographical location,
and the desired coverage. The policyholders have the option to choose the deductible amount, which is
the portion of any claim that they will have to pay themselves.
In the event of an accident or loss, the policyholder can file a claim with the insurance company to seek
compensation for the damages or losses incurred. The insurance company will assess the claim and
provide financial assistance based on the terms and conditions of the policy.
It is important to note that motor insurance is mandatory in most countries to drive legally on public
roads. It not only provides financial protection but also helps ensure the safety and well-being of all road
users.