What do you save by buying motor vehicle insurance?

Since the time motor vehicle insurance was mandated by the government of India, many prospective car owners have been questioning the advantages of this legal ruling. Like with most contracts, an insurance contract to comes to fruition when the insurer and the insured enter an agreement that is qualified by the law.

Motor vehicle insurance premium is a required expense for four wheelers in India. Insurance companies undertake the risk of providing security to their policyholders in the event of loss, theft or accident to the four wheeler. This compensation is applicable for both the policyholder’s property, the policyholder as well as third parties who might be affected by this.

However, there are still debates on whether this expense on insurance premiums is a required one. In this article, we at Chola MS car insurance explain the major ways in which policyholders make huge savings by insuring their four wheeler.


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In this article, we will look at all the savings that a motor vehicle insurance policy can bring!

Compensates for damages to vehicles

Motor vehicle insurance policies compensate the policyholder for all kinds of loss or damage to the insured vehicle that may have happened due to natural calamities, man made accidents or theft. During times of distress, a motor vehicle insurance policy acts as a safety net that offers financial security to the policyholder to secure them against a financial loss. Ex: Loss of vehicle to theft or a natural disaster like floods.

Also, driving in traffic-ridden places can cause the occasional bump and dent. Repairing and fixing these can cost a fortune for the owners of motor vehicles. With an appropriate motor vehicle insurance plan in place, policyholders can reap the benefit of allowing the insurance company to support them for these added expenses.

Compensates for injuries to the person

Motor vehicle insurance policies offer personal accident cover that compensates for the first aid and hospitalisation expenses of the policyholder should they be actively injured in an accident involving the insured vehicle. This can remove the financial burden of the policyholder during a time of undue emotional stress.

Safeguards the family against death caused by an accident involving the insured vehicle

Motor vehicle insurance policies offer financial compensation to the family members of the policyholder in the event of a serious accident that leads to the death of the owner of the vehicle. During such cases, the motor vehicle insurance policy comes as a welcome rescue to the members of the family who could have maybe lost a breadwinner too!

Offers protection against third party liabilities

Third party liabilities refer to the liability a policyholder might have towards a third person. This is applicable in places where the insured vehicle causes damage or injury to a third party in an accident. In such cases, the motor vehicle insurance policy will cover the expenses that may be incurred towards the third party liabilities.

Ex: In case an insured vehicle accidentally bumps into a pedestrian on the road, causing injuries, the driver may be held liable to pay for the damages. In such cases, the motor insurance policy will come in handy!

Apart from these, motor vehicle insurance policies offer a slew of attractive features, namely:

Specific add-ons

Add-ons feature specific covers that can be availed by the policyholder to add on to their existing policy.

Ex: Engine Protection Cover offers to cover expenses that may be incurred for the repair and replacement of the insured vehicle’s engine during events of malfunctions.

No Claim Bonus

This is an amazing practice of auto insurance companies, including Chola MS car insurance, wherein policyholders are rewarded with a ‘bonus’ for making zero claims during the tenure of the policy. This is rewarded in the form of a discount on the premium rate of the policy. This is also a wonderful way to actively encourage policyholders to have a safe riding experience.

An insurance policy acts as a safe bedding or a trampoline that a policyholder can fall onto should misfortune befall his/her life. And with motor vehicle insurance, it is even more significant since almost every household has a vehicle in their place. Motor vehicle insurance policies offer coverage under two main categories of third party coverage and comprehensive coverage, wherein the latter can be renewed at timely intervals to factor in appropriate add-ons.

Chola MS car insurance policies are known for their swift dealings with respect to claim settlements. Our no-fuss hassle-free processes have earned respect and admiration of all our customers.

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