If you own a car or motor vehicle, you must be knowing that a vehicle insurance is mandatory. Have you ever wondered why you need to buy a vehicle insurance, when you purchase a car in India? Here, you will come to know about the importance of buying a motor insurance in India, and the benefits that the insurance holder enjoys.
The number of road accidents is increasing annually. Eventually, it has become a necessity to buy a motor insurance, when you buy the vehicle. Driving without an insurance is a punishable offence in India. Read on to know the relevant details about the importance of your vehicle insurance.
Motor Vehicles Act, 1988
The Act has made the following mandatory for the vehicle owners:
- Driving license
- Registration of the vehicle
- Vehicle insurance
However, only third-party liability policy has been made mandatory by the Act. In case you are caught driving without a third-party coverage, you may face:
- A fine of INR 1,000
- Jail for 3 months under certain circumstances
- Suspension of driving license
- Suspension of vehicle registration
Evidently, it is important for you to adhere to the lay an buy a suitable vehicle insurancepolicy.
Why has car insurance been made mandatory in India?
The average number of accidents every hour in India has been rising. The cost of treatment, too, is high. Since the cost is too high to be managed by a single person, someone has to take up the responsibility for the damage. This is why a motor insurance is necessary. In case of an accident, the vehicle owner can approach the insurer to get the costs covered. The damage will be paid for by the insurer. However, if you do not buy a vehicle insurance, the entire cost has to be borne by you. This includes costs of medical treatment, damage caused to your own vehicle and the third party, as well as legal expenses.
In case you are involved in an accident, you might face legal penalties, besides the injuries. Besides, if you are at fault, you will have to pay for the damage suffered by the other parties. This is why buying vehicle insurance has been made mandatory in India. You need to buy a car insurance by law, as per Chapter 11 (Section 145 to 164) of The Motor Vehicles Act, 1988. Even if you do not get any coverage for your vehicle, it is compulsory to buy a third-party car insurance in India.
What are the advantages of buying a car insurance?
Car insurance policies are of two types. These are comprehensive car insurance policy and third-party car insurance policy. Although it is mandatory to have a third-party car insurance policy, the owners do not get adequate coverages from these schemes. Eventually, you should buy a comprehensive motor insurance, at the time of purchase of the vehicle.
Have a look at the advantage of buying car insurance in India
- Coverage: The owner of the vehicle remains insured for the damages that they cause to third parties. Besides, they can get a coverage for their own vehicle, depending on the type of coverage. The coverage for yourself will cover the cost of treatment, in case the owner or driver is injured. It will also cover the cost of repair.
- No claim bonus: In case you do not raise any claim during a policy year, you can obtain a no claim bonus, which is actually a discount on the premium that you need to pay.
- Mental peace: With a comprehensive vehicle insurance, you can enjoy the peace of your mind. Accidents are unpredictable. Even your car may get vandalized, when you park them somewhere around your home. In case the car gets damaged or stolen, you need not worry about the financial crisis.
- Protection for third parties: In case your car gets involved in an accident, you might not have the ability to pay for the damage you have caused to the other vehicle. Besides, you may have to bear the treatment costs of the other party. A car insurance keeps you insured against these unexpected costs.
- Legal costs: You may face penalties due to violation of traffic norms, if you are at fault during an accident. With a car insurance policy, you can benefit a lot, as the insurer will help you clear these costs.
- Personal hospital expenses: After an accident, the driver or owner of the vehicle may have to be admitted to the hospital, in case of injuries. A comprehensive vehicle insurance covers all these costs. Eventually, most of the car owners prefer buying a comprehensive policy.
If you are planning to buy a motor insurance, have a look at the policies online that the reputed companies have designed.
Buy a comprehensive car insurance policy for maximum coverage
In case the driver is responsible for the accident, a comprehensive policy will help you to fulfil the legal obligations, that you owe to the third party. Besides, the comprehensive policies also provide coverage for your vehicle and you can get the repairs done. Besides, if your car is stolen or damaged, you can get the amount compensated from the insurer. When you explore the vehicle insurance policies online, you will find that several insurers offer add-ons. These include legal support, complementary facilities for car towing and spot assistance round the clock.
These days, most of the people prefer buying their motor insurance policies online. It is easy to customize the scheme and renew the same through the online portals. You can also compare the best motor insurance policies online.
A comprehensive motor insurance policy reduces your liability. Buying vehicle insurance is similar to keeping your money saved in a bank, in case you need it to cover yourself financially. Even if the accident is minor, you can stay free from the financial stress caused due to hospitalization and legal issues. Vehicle insurance has been made compulsory in India by the government, as no person will suffer a financial loss due to accidents. Even if they are involved in an accident, they will get a fair compensation.