The minimum requirement by law i.e. under Motor Vehicle Act 1939 is in respect of legal liability to pay damages arising out of bodily injury / death caused to any third party person – The following policies are available under this section:
Act Liability Only Policy: provides cover in respect of liability incurred through death or personal injury to a third party person. This is minimum legal cover available under Motor Vehicle Act, 1939.
Third Party Only Policy: provides cover as above plus damage to third party property.
Comprehensive: This is the widest possible cover and affords cover as above and in addition including cover for accidental loss of or damage to the vehicle itself i.e. own damage as well as theft of vehicle.
These forms of cover apply to the main classes of motor insurance which are:
- Private cars: From the smallest to the largest.
- Commercial vehicles: From vans to articulated lorries
- Motor cycles: From mopeds to multi-c.c., multi cylinder models
- Motor trade: Garages etc. who have special needs
- Special types: Bulldozers, mobile cranes etc.
- Fleets: Groups of vehicles of any kind, provided more than, say, 10 in number and belonging to one insured.