Motor Insurance is a legal agreement between two parties, i.e., the Motor insurance company (insurer) and the individual (insured). In this, the four wheeler or two wheeler insurance company promises to make good the insured's losses on happening of the insured contingency. The contingency is the event that causes a failure. It can be the death of the policyholder or damage/destruction of the property. It's called a contingency because there's uncertainty regarding the happening of the event. The insured pays a premium in return for the promise made by the insurer. The insurer and the insured get a legal contract for the two wheeler and four wheeler insurance, called the motor insurance policy. The Motor insurance policy has details about the conditions and circumstances under which the Motor insurance company will pay out the Motor insurance amount to either the insured person or the nominees. Motor Insurance is a way of protecting your two wheeler or four wheeler. Generally, the premium for a comprehensive insurance cover is much lesser in terms of money paid. The Motor insurance company risks providing a high cover for a small premium because very few insured people claim the Motor insurance. This is why you get Motor insurance for a considerable amount at a low price. Any individual or company can seek Motor insurance from an insurance company, but the decision to provide Motor insurance is at the Motor insurance company's discretion. The Motor insurance company will evaluate the claim application to make a decision. Generally, Motor insurance companies refuse to provide Motor insurance to high-risk applicants. Motor Insurance in India can be broadly divided into various categories.