Discuss the scope of coverage available in a comprehensive motor insurance policy. Why is motor insurance mandatory in India unlike in other countries ?

A comprehensive motor insurance policy is a combination of a motor insurance for own-damage cover plus a third - party insurance policy. A comprehensive motor policy also does not cover all losses, the common exclusions or limitations in a motor insurance policy are as under: Consequential loss depreciation, wear and tear, mechanical and electrical breakdown, failures or breakages. Damages to tyres and tubes (50% in case of mishap). Accidental loss or damage under the influence of intoxicating liquor or drugs- Excesses or sometimes multiple excesses exclusion. Sometimes, in addition to standard excess, extra excess may be imposed. If there is an accident within six months of obtaining cover or between midnight and 6am- the most dangerous time on the road- an excess may apply. Motor cover, is a statutory requirement under the Motor Vehicles Act. It is referred to as a 'third-party' cover since the beneficiary of the policy is someone other than the two parties involved in the contract i.e. the insured and the insurance company. The policy does not provide any benefit to the insured; however it covers the insured's legal liability for death/disability of third party loss or damage to third party property. Motor insurance, as the name suggests, is insurance of motor vehicles and are broadly classified as follows: Private Cars. Motor cycles and Motor scooters. Commercial vehicles sub divided into Goods carrying vehicles, Passenger carrying vehicles. and Miscellaneous vehicles. The coverage available under Motor insurance include. Liability Coverage When involved in an accident and if it is concluded that accident took place because of fault/negligence, the liability coverage will be of use. The following benefits are offered by the liability insurance plan: Covers the repair/replacement cost of the damaged property (of third-party). Covers the medical bills of the third party due to hospitalization or medical treatment. Vehicle owners should buy minimum liability insurance as per the legal obligation and the insurance policy will cover the same. The liability coverage will include the third-party injury, death or damage to the third party property. Liability coverage is mandatory as per the Motor Vehicle Act, 1988. Collision Coverage If purchased 'collision coverage' the insurance company will bear the car repair expenses after the accident. In some cases, the cost of repairs will exceed the current market value of the vehicle. In such circumstances, the insurance company will pay the current market value of the car. The collision cover should be subscribed as per the age of your vehicle. If you are buying an insurance policy for a brand new vehicle, you should ensure that the collision coverage is included. If there is a lien on your vehicle, you should buy collision cover. The collision cover can be as low as possible for old vehicles. Personal Injury Coverage In addition to the mandatory liability insurance, you can include certain coverage to overcome various risk factors. Personal injury protection will cover all the costs associated with the accident. The medical bills of the driver and other passengers will be covered by the personal injury protection. Regardless of whose fault, the insurance company will pay the medical bills. Comprehensive Coverage Form B which is also known as Comprehensive Policy is an optional cover. A comprehensive insurance coverage will include all kinds of risk factors that are associated with your vehicle, driver, passengers, third-party vehicle, third-party driver, third-party vehicle passengers and third party property. The insurance policy will also cover the following risk factors: Weather damage, Floods. Fire, Theft In a country like India, people have not fully understood the necessity of insurance. Most of the people take insurance because there are tax sops attached, in case of general insurance the government does not make any policy mandatory except Motor third party liability insurance. This is because the Motor vehicle Act it is mandatory that no vehicle can ply on the road without a valid third party insurance cover. In order to ensure the safety of the common public this policy has been made mandatory. However, it in the interest of the society that in India at least some policies should be made mandatory like Term life insurance plans, Health insurance policy, Personal accident insurance plans and Disability income insurance plans