When you buy a motor vehicle, you must buy Motor Vehicle Insurance. Motor / Vehicle Insurance covers your vehicle, be it a motorcycle, a car or a lorry, in case of accidents or theft.
There are three common types of motor insurance available such as Third party, Fire, Theft and comprehensive cover. The level of your coverage dictates what you can claim if your vehicle sustains loss or damages.
The premiums amount depends on type of vehicle and its usage. If its a brand new vehicle, the cost will be higher but try to get insurance for the amount you need in case of damages or theft. Low premium will limit the amounts while claiming thus you will get very less claim amount. So calculate the premium payable accordingly to your risk bearing ability.
Claim procedure are set by various companies according to their rules. Just go through the claim procedures before buying a vehicle insurance. Generally they need documentary proof of accident such as FIR copy, Bills of approved workshops of insurance companies etc.
If you are not satisfied with the insurance company, you can cancel your policy at any time by notifying your insurance company in writing, inclusive of the date you want to stop the policy. You may get refunds from Insurance companies depending on time period used and company policy.