Motor insurance is an outright need for any individual who drives a vehicle and the fact that in India, third party motor insurance are even mandated by law. Motor insurance generally the covers vehicle owner against damages and liabilities arising out of accidents, thefts and also protects the general public from any accident that might take place on the road. It is a contract between you and the insurance company wherein you pay a premium for a policy that will provide protection against every comprehensible risk related to your vehicle; damage, theft, death and injury in an accident, plus liability protection in case you are sued as a result of an accident (third party liability).

The motor insurance in general includes: loss, damage by accident, lightning, fire, explosion, burglary, housebreaking, malicious act, theft, third party injury liability and death and liability to a paid driver.

Motor insurance acts like a protection against any unforeseen risk which may result in a financial loss or liabilities:

• Liabilities like - injury/ death to the person or damage to the property
• Financial loss like - damage to the vehicle itself and/ or theft of the parts of the vehicle or the vehicle itself.

In order to over just liabilities and financial losses (whichever are associated with the accidents) a motor insurance is required.

Motor vehicle act, 1988

It is important to have some information about the motor vehicle act passed in 1939 and amended in the year 1988. The insurance of the motor vehicles against the damage is not mandatory, but the insurance for third party liability arising out of the use of the vehicle in Public place is compulsory.

• Act requires any motor vehicle plying in a public place to be compulsorily insured against third party injury and property damage

• Motor insurance in india is tariffed and is governed by the india motor tariff which prescribes premium rates, coverage, exclusions, terms & conditions.

The liabilities that required compulsory insurance are as follows:

1. A. Death or bodily injury of any person including owner of the goods or his authorised representative carried in the carriage
2. Damage to any property of a third party
3. Death of bodily injury Of any passenger of a public service vehicle
4. Liability arising under the Workmens compensation act, 1923 in respect of death or bodily injury of:
   1. Paid driver of the vehicle
   2. Conductor, or ticket examiner (public service vehicle)
   3. Workers, carried in a goods vehicle

Certificate of insurance under motor vehicle act:

As per rule 141 of central motor vehicle rules 1989, a certificate of insurance is to be issued only in form 51. It is only in motor vehicle insurance, apart from policy, a separate certificate of insurance is required to be issued by insurers as per law. This document should always be carried in the vehicle. Policy should be preserved separately at home/ office.

For the purpose of insurance, motor vehicles are classified into 4broad categories:

1. Private vehicles (eg. Car, jeep, utility vehicle)
2. Two wheeler (motor cycle & motor scooters)
3. Commercial vehicles
   1. Good carrying (eg: public carrying vehicle - 3 wheeler & excluding 3 wheeler, private car, etc)
   2. Trailers
   3. Passenger carrying
      1. Motorised rickshaws
      2. Taxis
      3. Buses
4. Miscellaneous vehicles
   1. Hearses (funeral van
   2. Ambulance
   3. Cinema film recording & publicity vans
   4. Mobile dispensaries