Motor insurance is a type of insurance coverage that provides financial protection against losses and damages to vehicles, as well as liability arising from third-party bodily injury or property damage caused by the insured vehicle. It is mandatory in many countries to have at least third-party motor insurance to drive a vehicle legally on public roads.

Here are the key components of motor insurance:

1. Comprehensive Coverage: Comprehensive motor insurance provides coverage for damages to the insured vehicle due to accidents, theft, fire, natural disasters, vandalism, and other perils. It also includes third-party liability coverage for bodily injury or property damage caused to others by the insured vehicle.
2. Third-Party Liability: Third-party motor insurance covers the legal liability of the vehicle owner or driver for injuries or damages caused to third parties. It is mandatory in most countries to have this basic coverage to protect third parties from accidents involving the insured vehicle.
3. Own Damage Cover: Own damage cover in comprehensive motor insurance offers protection against damages to the insured vehicle due to various events, excluding third-party liability.
4. No-Claim Bonus (NCB): Policyholders are rewarded with a no-claim bonus for every claim-free year. The NCB is a discount on the premium and increases with each consecutive claim-free year.
5. Deductibles: Some motor insurance policies may have deductibles, which are fixed amounts that the policyholder needs to pay out of their pocket before the insurance coverage comes into effect.