Thursday, June 9 2005 22:37 Hrs (IST) - World Time -

There is danger at every corner when it comes to Indian roads, especially, in metros. With the increased number of vehicles, road rage is a perpetual problem with Indian metros. Someone who mistakes a highway for space, and his car for a space shuttle hits your brand new vehicle, and that's it!

If not for your valuable life, Insurance can at least pay for your financial loss.

An Auto insurance policy is a safe guard for consumers that shields private passenger carrying automotive vehicle owners from monetary losses, if a vehicle they own is involved in any type of accident. It is an agreement, contract, or policy formed when a consumer and an insurance company establish specific protections involving vehicle ownership.

Consumers agree to allocate funds called premiums and the insurance company agrees to provide benefits that cover setbacks from an accident involving a vehicle. Damages can include property, physical injury, medical treatments, or death as established in the auto insurance policy.

Auto insurance can seem confusing. But once you understand the different types of coverages that make up your policy, it's not hard at all. Your auto insurance is really a package of seven primary coverages. Taken together, these coverages make up a standard auto policy. Each of these coverages has its own separate premium. Your premium payment is the total of these separate premiums.

Three Board Divisions:

Talking in Indian context, broadly we can divide the Auto Insurance Policy, amongst Car Insurance, Two Wheeler Insurance and Commercial Vehicle Insurance.

Car Insurance is when any light motor vehicle used for social, domestic and pleasure purposes and for the insurer's business.

The Two Wheeler Insurance covers Motor Cycles, scooters, mopeds, auto cycles and mechanically assisted pedal cycles.

Commercial Vehicle Insurance is when insurance company covers the damages for the commercial vehicles.

Following are the damages covered by all the insurance companies irrespective of the type of vehicles.

• 1(a). Loss or damage by accident, fire, lightning, self-ignition, external explosion, burglary, housebreaking or theft, malicious act.
  
  
• 1(b). Riot and strike, terrorism, earthquake, flood, cyclone and inundation.
  
  
• 1(c). Whilst in transit by rail, road, air, elevator, lift.
  
  Perils under 1(b) can be deleted and a discount in premium availed.
  
  
• 2. Liability for third party injury or death, third party property and liability to be paid by the driver.
  
  
• 3. On payment of appropriate additional premium, loss/damage to electrical/electronic accessories, PA cover for drivers, insured or any named person, unnamed passengers can also be taken.
  
  
• 4. Certain discounts in premier are also available.