Why Is Car Insurance Mandatory?

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We live in India, where general problems like the uncontrollable population growth, the rise in car ownership, and the resulting increase in traffic hit particularly hard. The likelihood of accidents has increased as a result of the unparalleled increase in car ownership and other factors. 

These unintentional accidents can occasionally have disastrous effects on you, your family, and other parties. That may put a strain on your finances and those of the accident victims, including you. As a result, the Indian government made it necessary for car owners to have at least Third-Party Car Insurance

How essential is car insurance? 

Risk protection plans, like car insurance, are designed to shield us from unanticipated obligations and events. Anyone can become stranded on the road in their vehicle following an accident, an engine breakdown due to rain, or vehicle theft. Car insurance coverage will come in handy in all of the scenarios. 

Advantages of car insurance 

With how many accidents there have been in India over the last few years, it is worthwhile to obtain car insurance. In light of the situation, we can consider the advantages of car insurance, which include: 

  • The legal costs, if found responsible for the harm, as well as the lawsuits. 
  • Repair costs for the damage incurred in an accident. 
  • Damages from terrorism, earthquakes, etc. These are not accidents. 
  • Benefits for the deceased’s surviving family. 

Car insurance types provided in India 

If you do a quick check for car insurance online, you’ll discover two types of policies.

  • Third-party insurance

One of the most popular types of car insurance is third-party coverage, which exclusively covers losses and damages to third-party individuals, vehicles, or property. *

  • Comprehensive 

One of the most beneficial types of car insurance is comprehensive, which also covers damage to your own vehicle and third-party liabilities. *

Vehicle Insurance: What Is Covered 

  • To repair your own damage 

If the owner does not have comprehensive car insurance, there will be no coverage for the car’s own damage. The car owner will sustain some losses if he bangs the car intentionally or unintentionally. Subject to car insurance coverage, the owner of the vehicle will be compensated for any damages under the car policy. Otherwise, he won’t be reimbursed in any of the scenarios. *

  • Reduce the enormous third-party responsibility 

There are more chances of collision and bend given the growth in traffic in nothing flat. You might be able to recover from your personal losses, but what if a third party is unable to absorb high costs following a loss? You are responsible for paying for any damage your car causes to a third party. It makes no difference if you can afford it or not. The third-party might experience physical harm or property damage, for which you might be held responsible. In this situation, car insurance will be useful to protect you from excessive liability. * ##

  • To amplify compensation for the deceased’s family 

To assist the relatives of the deceased who might perish in a car accident, car insurance is required. To lessen the burden on the families, the Motor Tribunals Act’s compensation provisions were enacted. *

What will occur if you don’t have car insurance? 

Assume you follow the regulations of the road but unexpectedly hit a car that was parked by the side of the road. Your car will have caused property damage to a third party. You’ll be responsible for covering the losses. Yet, if you don’t have car insurance, you could encounter: 

  • Your driving privileges being suspended 
  • Legal action and penalties 
  • Absence of financial protection in the event of damage or accident 
  • Registration of the vehicle is suspended. 
  • Fine for driving without insurance in heavy traffic 

* Standard T&C Apply

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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