In India, many people wonder why car insurance is mandatory. As my money belongs to me, I should be able to spend it as I see fit. The purpose of this article is to provide an exact answer to this question. The number of road accidents in India has been on the rise, so it has become increasingly important for people to have car insurance. Find out why car insurance is mandatory by reading on.
It is the responsibility of risk covers, such as car insurance, to protect us against unplanned events and liabilities. Car insurance policies are a savior in any of the following situations: getting stuck with your car after an accident, having your engine fail because of rain or getting stolen.
A lot of the time, we see new drivers speeding and causing irreparable damage to their vehicles. Such irreparable trauma makes us think about the need and importance of insurance for cars.
Consider you and your friend paragliding. You prefer to go without any assistance, but your friend prefers the guide for safety and protection. You didn’t know the rules of diving, so your parachute collides with a tree on the mountain when the air pressure changes and the wind blows. Because your friend prioritized safety over anything else, he/she managed to land damage-free.
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Why Should You Get It Car Insurance ?
Since the Indian economy has grown, the disposable income of the common man has increased. This, combined with the availability of car financing, has made it possible for many families to own a car, sometimes even more than one. After all, relying on public transportation is not as convenient as owning a car.
As soon as you buy a car, you must buy car insurance as well. The Motor Vehicles Act, 1988, mandates this:
- All vehicle owners in India are legally required to purchase third-party motor insurance. Third-party liability insurance protects the car owner from the following incidents:
- In the event of an accident, it protects him/her from legal liability to a third party.
- A third-party injury or death is covered under this insurance policy.
- There is also coverage for damage to third-party property.
- Accordingly, this insurance plan pays for all accident-related damages and protects the at-fault driver from legal consequences.
- There are some car insurance companies in India that offer a personal accident cover for the owner-driver in addition to third-party liability insurance. In the event that an accident results in a minor or serious injury to the car owner, this insurance cover can cover those expenses. It will not be the owner’s responsibility to cover hospital expenses if the accident involves hospitalization. The motor insurance company will cover the expenses. Upon the death of a car owner, the family will receive a substantial amount to help them cope financially.
- A car insurance policy can reduce your stress level, especially if you are not a confident driver. Even experienced drivers should have a car insurance policy since accidents can happen without their fault.
Benefits of Buying Car Insurance
As mentioned earlier, there are two types of Car Insurance policies: Third Party Insurance and Comprehensive Insurance. Third Party Insurance is compulsory in India for every car owner but does not provide adequate coverage for the owner.
1- The Coverage
Depending on the type of coverage, a car insurance policy will cover you for third-party damages as well as own damage. Own damage insurance covers your injuries and the cost of repairing your vehicle.
2- No-Claim Bonus
During an active policy year, you will be entitled to a No Claim Bonus, which is a discount on your car insurance premium.
3- Having Peace of Mind
The benefit of car insurance is the peace of mind that comes from not having to worry about unplanned financial hardships that may occur if a car is stolen or damaged.
Types of Car Insurance in India
1- Third Party
A third-party car insurance policy covers only damages and losses caused to a third party’s person, vehicle, or property.
Comprehensive car insurance is one of the most valuable types of car insurance because it covers third-party liabilities as well as damage to your own car.
Best Way To Buy Car Insurance in India
The two most important ways to get car insurance are online and offline. Here is how to buy car insurance online:
The easiest way to buy car insurance in India is online. In India, you can buy car insurance online from anywhere and anytime. Just visit the car insurance page, pick the type of policy you want, fill in your details and pay. Your car will be insured in no time.
When you buy car insurance offline, you need to provide certain documents, pay for the policy, and attend an in-person meeting with the insurance company. Buying insurance offline requires you to physically be present, so it can be a bit tedious. It can be purchased from your car dealer, insurance agent or by visiting the insurance company.