India auto insurance laws
As per laws of auto insurance in India, laid down by Motor Vehicles Act, every car owner in India is required to have a proper automobile insurance policy. India auto insurance laws also state that every automobile that is used for a social, recreational or individual purpose has to be insured. In case these laws are not observed by a car owner he would be subjected to financial punishment as stated by laws.
Types of India auto insurance
In India auto insurance industry there are two major types of auto insurance policies - Motor Policy A and Motor Policy B. Motor Policy A is a form of third party insurance. It provides unlimited coverage and compensation of payment in case of physical injuries or death of a third party. This type of insurance also provides limited coverage in case of damages caused to property of a third party.
Motor Policy A also provides coverage to insured from any legal obligations that result from accidents caused by their cars. Any damage done to vehicle of insured is not covered by Motor Policy A. In automobile insurance industry of India maximum coverage provided by Motor Policy A is INR 7.5 lakhs.
Motor Policy B is a sort of comprehensive insurance. It provides third party liability services in addition to coverage for damages sustained by car of insured. Types of damages covered range from thefts and accidents to certain types of risks. These insurance policies also provide coverage against floods, riots, earthquake and strikes. If insured pays extra premium, various accessories within a car can be insured by Motor Policy B.
India Automobile Insurance Industry
There are various types of service providers functioning within auto insurance industry of India. However, there are two broad categories who deal in India auto insurance policies – a development officer of an insurance company and an insurance agent. When an insured pays an India auto insurance premium he is entitled to receive a cover note from his or her insurer. Premiums of India auto insurance industry are based on Insured's Declared Value, which is premised on past showroom value of an insured car.