Motor Insurance details

 

While the introduction of automobiles in the present century has brought a lot of good news to the people, it is not only a source of unmixed joy. Because many precious lives and property are destroyed by being crushed under this monster.

The rapid growth and widespread use of automobiles has created new motor risks.  Therefore, motor vehicle insurance has been introduced to compensate for all these risks arising from motor vehicles.

A car owner faces various risks related to his car. Such risks can be divided into five categories; E.g.

1. Publicity risk

2. Risk of property loss

3. Risk of collision or accident

4. Fire risk and

5. Risk of theft.

The first risk refers to the risk of loss of life and property or injury to the public or third party by the insured's motor vehicle. Other than the first, the risks are the car's own risk.

Therefore, the insurance that the owner of the car carries is called motor car insurance to protect against the risk of loss of life and property while using the car. The purpose of such insurance is to cover the risk of loss of the vehicle or its loss in whole or in part due to an accident in return for a certain premium or the risk of all liability caused by it to the insurance company.

As the use of automobiles has greatly increased, so has the risk involved. Therefore, different types of motor insurance or insurance policy have been introduced to reduce the risk. The following are the different types of car insurance:

1. Public Liability Insurance: If a motorist unjustly physically injures or injures a person due to the fault of the motorist, the owner of the motor vehicle is obliged to pay compensation to such aggrieved party. The owner of the motor vehicle takes out liability insurance for the purpose of imposing such liability on the insurance company. As a result, the risk of such a risk is passed on to the insurance company in return for a fixed premium.

2. Loss of property: Insurance Sometimes a motor vehicle can destroy another person's property due to the driver's fault and the owner or driver of the vehicle is responsible for that.  The burden of such loss can be passed on to the insurance company through a property loss insurance policy.

3. Fire insurance policy: In case of an accident due to fire in a motor vehicle, the insurance company can be held responsible for the loss by taking a fire insurance policy in advance. Such insurance policies can be both assessed and unvalued.

4. Theft insurance policy: This type of insurance policy pays compensation to the owner if the car is stolen. Therefore, it can be included in other related insurance policies without taking separate insurance policy. The premium varies according to the region and the price of the car.

5. Accident insurance policy: The purpose of this type of insurance policy is to protect the insured from any damage caused by a motor vehicle collision. If the vehicle or other property is damaged in a collision or collision with a stationary or moving object, the company is liable for non-compensation under such insurance policy.

It is inconvenient, costly and time consuming for the car owner to collect such separate insurance policy for the individual risk of the vehicle. Therefore, by reducing the number of insurance policies for these risks, the following categories of insurance policies are also available in the market:

1. Act policy: All the risks that fall under the Motor Vehicle Act on the shoulders of the motor vehicle owner are insured through this type of insurance policy as it is called law insurance policy.  According to this law, the owner of a car must take insurance policy for the death or bodily injury of a person by driving a car.  According to the Workers' Compensation Act, it is also essential to obtain insurance for the death or bodily injury of the driver of the vehicle or other workers in the vehicle. Therefore, the owner of the car carries such insurance policy for all these legal liabilities or risks.

2. Third party policy: Acts other than the legal liability of the third party covered by the law insurance policy; For example, under the Fatal Accident Act and general law, if the owner of the motor vehicle is responsible for any loss to a third party, such insurance policy is taken to cover it. Such insurance covers the loss of any third party property for which the car owner is liable. No other risks are included. As a result, the amount of premium is less. In addition to the indemnity, the insurer also pays the cost of the insured and the costs incurred by law.

3. Comprehensive Policy: An insurance policy that covers many motor risks under one policy is called a comprehensive motor insurance policy.  This includes the death or physical disability or injury of the insured due to his own car accident. It also includes family members of the insured. At this stage it is like accident insurance. On the other hand, this insurance also accepts if the car is damaged due to theft, fire, etc., in which case it is property insurance. Again it is liable because it takes the risk of a third party. He also does insurance work. Thus, the overall insurance policy assigns the liability for different types of risks to the insurance company under a single policy. As a result, the premium rate is higher in this case.

The following features of vehicle insurance exist

1. Vehicle insurance guarantees financial compensation in the event of loss of life and property of the owner, passenger, driver, pedestrian or any other person as a result of driving the vehicle.

2. Vehicle insurance premium depends on the type of vehicle, age, type of fuel, place of driving, etc.

3. If the vehicle does not have to pay any kind of compensation within one year of taking out insurance, the insurer refunds a portion of the premium paid to the insured.

4. The insurer can take the help of his own or a partner organisation for vehicle repair. In that case the insurer does not pay the insurance claim to insurance holder. However, if the insured does not receive the actual repair service of the bidder, the insured gets the money.

5. The insurer does not pay the insured in case of normal damage to the vehicle, inconvenience, mechanical defect, administrative penalty for lack of valid documents of the vehicle, damage caused by driving in the event of an accident, etc.

In conclusion, the insurance contract that is concluded between the owner of the car and the insurer in exchange for a premium to reduce and compensate for the risk of any kind of accidental loss due to the vehicle or motor vehicle is called auto insurance.