The term ‘auto’ covers a wide class of automotive running on the streets. It may be two-wheelers like bikes & scooters and four-wheelers like jeeps, buses, cars. Taxis and other automobiles. Below are various different types of auto insurance –
Types of auto insurance –
As car insurance is compulsory while purchasing a new car and hence, it is the rapidly growing segment in the insurance industry. Many leading automakers are joining their hands with leading insurance companies to offer instant insurance to their buyers. This insurance insures damage or loss by fire, accidents, riots, lightning, earthquake, explosions, third-party claims, theft & terrorist attacks and damages like the liability for 3rd party death or injury, liability to paid drivers & third party property.
Commercial Auto Insurance:
This insurance type secures all vehicles which are used for commercial purpose. Heavy & light commercial autos, buses, trucks, ambulances, agricultural autos and multi-purpose autos etc are protected under this policy. The calculation of premium is based on the brand & model of the commercial auto, registration place, manufacturing year, whether the insurer is corporate or individual and existing showroom cost. Insurance firms in collaboration with the automakers offer less complicated schemes for safe insurance policies. Bajaj Allianz, ICICI Lombard, HSBC India etc are some of the leading insurance firms available in India which serve commercial auto insurance.
In India, two wheeler insurance is also popular and is governed by the Indian Motor Tariff. It offers a cover against man-made & natural calamities or a damage caused to the automobile in transit by air, road, and rail etc. It offers personal accident cover which is mandatory to the policyholder. This accidental coverage can be available for passengers also. This insurance gives protection against legal liabilities arising because of third party death/injury/damage caused to its property.