Although comprehensive motor insurance provides complete coverage to your vehicle, when the number of vehicles increases, it may become very stressful to keep track of all insurance policies. Also, it becomes very expensive when you take separate insurance for your every vehicle. In such cases, motor floater policy comes to the rescue.
What is the Motor Floater policy?
It is just like a family floater policy in the case of health insurance. It covers all your private vehicles up to a maximum of 5 vehicles under 1 policy. So, it saves both your hard-earned money and time to buy separate policies.
Why should you buy a Motor Floater policy?
Saves money: A motor floater policy is much cheaper than taking separate policies for all your vehicles.
Easy to track: Single policy for all the vehicles makes it easy for you to keep track. There will be no confusion about the policy renewal and other details.
Time-saving: You do not have to invest your valuable time in searching for the best policies separately for all your vehicles. Just find out the best motor floater policy and secure all your vehicles under it. It saves your time during both purchase and renewal.
Less documentation required: When you buy a single policy for all your vehicles, you will have to do less paperwork.
Features of Motor Floater policy
|Applicable for||Private vehicles|
|Number of vehicles can be covered||Maximum 5|
|Sum Insured||Equal to the highest IDV value|
What is covered?
- Accidental damage while transit through road, rail, waterway, and air.
- Damage/loss due to human-made reasons like riots, strikes, theft, burglary
- Damage/loss due to natural reasons like earthquakes, floods, landslides, etc.
- Third-party liability
- Fire, self-ignition, or explosion
What is not covered?
- Driving without a valid driving license
- Driving under the influence of alcohol/drugs
- Violation of traffic rules
- Natural wear and tear
- Consequential loss
- Contractual liability (liability on you due to a contract between two parties)
- Electrical and mechanical breakdown
- Damage/loss due to involvement in any illegal/criminal activity
- Damage/loss outside India
- War (nuclear, chemical, or biological) or warlike situation
- If a private vehicle is used for commercial (business) purpose
- Claim after the policy period
How does Motor Floater policy work?
- This policy works just like comprehensive motor insurance. The only difference is that it covers more than 1 private vehicle under a single policy.
- Here the sum insured will be equal to the highest IDV among all.
- Maximum 5 vehicles can be insured under 1 policy.
- You can add or remove any vehicles when required. In case of removal of a vehicle, you will get a refund and in case of addition of a new vehicle, you have to pay an extra premium on a pro-rata basis.
- When you make a claim, the total sum insured will be reduced by the same amount.
Factors affecting premium
- Number of vehicles covered
- Types of vehicles covered (Bike, Scooter, car, etc.)
Other factors are just like comprehensive motor insurance.