Act only motor insurance policy is a type of motor insurance policy that provides coverage against the legal responsibility that arises due to the death or injury of a third party as a result of a motor accident. In this type of insurance policy, you are only covered against the liabilities that arise due to the motor accident. This insurance policy does not provide coverage for the damage caused to your vehicle. In other words, act only motor insurance policy provides coverage for third party liabilities.
What Does Act Only Motor Insurance Policy Cover?
Act only motor insurance policy covers the legal responsibility that arises due to the death or injury of a third party as a result of a motor accident. This legal responsibility includes medical expenses, funeral expenses, compensation for death or injury, legal expenses, and damage to property. The amount of coverage varies from insurer to insurer, however, most insurers offer coverage of up to Rs. 15 lakhs.
Who Should Buy Act Only Motor Insurance Policy?
Act only motor insurance policy is suitable for those who own an old vehicle or a vehicle that is not in a good condition. If the cost of repairing your vehicle is more than its market value then it is advisable to buy an act only motor insurance policy. This insurance policy is also suitable for those who use their vehicle for short distances or for personal use. This type of policy is more affordable than comprehensive motor insurance policy.
What is Not Covered Under Act Only Motor Insurance Policy?
Act only motor insurance policy does not provide coverage for damage caused to your vehicle. It also does not provide coverage for damage caused to any other vehicle involved in the accident. It also does not provide coverage for personal accident, theft, and fire. In addition, it does not provide coverage for any damage caused due to natural calamities such as floods, earthquakes, and cyclones.
What is the Process of Making a Claim Under Act Only Motor Insurance Policy?
In order to make a claim under an act only motor insurance policy, you must first inform your insurer about the accident. If you are liable for the accident, then you can make a claim for the third party liability. You must provide all the necessary documents to your insurer such as the accident report, medical bills, and other relevant documents. Your insurer will then assess the claim and decide whether to accept or reject it.
What are the Benefits of Act Only Motor Insurance Policy?
The main benefit of act only motor insurance policy is that it provides coverage for third party liabilities at an affordable cost. In addition, this type of policy is easy to buy and there is no need to undergo a physical inspection of the vehicle. Furthermore, the claims process is simple and hassle-free. In addition, it provides a wide range of coverage for third party liabilities.
What are the Exclusions of Act Only Motor Insurance Policy?
The main exclusion of act only motor insurance policy is that it does not provide coverage for damage caused to your vehicle. It also does not provide coverage for any damage caused due to natural calamities such as floods, earthquakes, and cyclones. In addition, it does not provide coverage for personal accident, theft, and fire. It also does not provide coverage for any damage caused to any other vehicle involved in the accident.
What is the Premium for Act Only Motor Insurance Policy?
The premium for act only motor insurance policy depends on various factors such as the age of the vehicle, place of registration, and other factors. Generally, the premium for this type of policy is lower than that of a comprehensive motor insurance policy. The premium also depends on the sum assured and the type of cover chosen by the policyholder.
Conclusion
Act only motor insurance policy is a type of motor insurance policy that provides coverage against the legal responsibility that arises due to the death or injury of a third party as a result of a motor accident. This type of policy is suitable for those who own an old vehicle or a vehicle that is not in a good condition. The main benefit of this policy is that it provides coverage for third party liabilities at an affordable cost. The premium for this type of policy is lower than that of a comprehensive motor insurance policy.
