Page 53 - M1_Insurance Introduction Notes

Insurance coverage is available for loss or damage

to ships and aircrafts as well. The indirect loss

caused due to inability to use the property or

assets as a result of peril, called consequential

loss, can also be insured.

4. Motor insurance

A Motor Insurance policy covers damage to the

vehicle. Motor insurance covers your vehicle, be it a

motorcycle, a car or a lorry, in case of accidents or

theft. Further, while driving a vehicle, it is possible

that the vehicle hits someone and causes death/ injury

or damage to someone’s property.

As per the law, the owner of the vehicle is legally

liable to pay compensation for any injury or damage to

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