Why Motor Insurance? Motor insurance gives protection to the vehicle owner against (i). damages to his/her vehicle and (ii). pays for any Third party Liability determined as per law against the owner of the vehicle. Third party Insurance is a statutory requirement. The owner of the vehicle is legally liable for any injury or damage to third party life or property caused by or arising out of the use of the vehicle in a public place. Driving a motor vehicle without insurance in a public place is a punishable offence in terms of the Motor Vehicles Act, 1988. Types of Motor Insurance: Broadly there are two types of insurances policies that offer motor insurance cover: 1- Liability Only Policy (Statutory requirement) 2- Package Policy (Liability Only Policy + Damage to owner’s Vehicle usually called O.D Cover Remember that if you take only a Liability Only Policy, damage to your vehicle will not be covered. Hence, it would be prudent to take a Package Policy which would give a wider cover, including cover for your vehicle. What Motor Insurance covers: The damages to the vehicle due to the following perils are usually covered under OD section of the Motor Insurance policy: - Fire, Explosion, Self- Ignition, Lightning - Burglary/Housebreaking / Theft - Riot & Strike - Earthquake - Flood, Storm, Cyclone, Hurricane, tempest, inundation, hailstorm, frost - Accidental external means - Malicious Act - Terrorism acts - While in Transit by Rail/ Road, Inland waterways, Lift, Elevator or Air - Land slide / Rock slide What Motor Insurance excludes: The following contingencies are usually excluded under the Motor Insurance Policy: - Not having a valid Driving License - Under Influence of intoxicating liquor/ drugs - Accident taking place beyond Geographical limits - While Vehicle is used for unlawful purposes - Electrical/Mechanical Breakdowns.