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The Importance Of Mandatory Car Insurance In India

by Elaina
James Marroun

People often question why car insurance is mandatory in India, wondering why they can’t spend their money as they wish. This article provides a concise answer, highlighting the necessity of car insurance due to the country’s increasing number of traffic accidents.

Why Is Car Insurance Required?

Our country has around 55 traffic accidents per hour on average. Car insurance becomes crucial in such scenarios. Those with insurance can have damages covered, but those without will have to bear the costs themselves if they cause an accident.

Drivers causing accidents can be legally liable for damages and medical expenses. Under Chapter 11 of the Motor Vehicles Act 1988, third-party car insurance is mandatory in India.

 

Benefits Of Purchasing Car Insurance

Third-party and comprehensive car insurance are the two categories of car insurance policies. As previously stated, every car owner in India must carry a third-party car insurance. It does not, however, offer the owners themselves sufficient coverage.

Coverage

A car insurance policy will cover both your own and third-party damages, depending on the type of coverage. The cost of repairing damages and treating the owner-driver’s injuries are covered by own damage insurance. Claims are subject to terms and conditions set forth under the motor insurance policy. *

Peace Of Mind

Complete peace of mind is provided by car insurance. There’s no need to worry about an unexpected financial crisis that could arise if the car gets stolen or damaged.

No Claim Bonus

If no claims are made during an active policy year, you will be eligible for a No Claim Bonus, which is a reduction in the total amount of your car insurance premium. *

Ways To Purchase Car Insurance In India?

You can insure your car against unanticipated events in several ways. Online and offline are two of the most significant methods. This is how to purchase car insurance:

Online

These days, purchasing car insurance online is the simplest option. Online car insurance is a service provided by numerous general insurance providers in India. Go to the car insurance page, pick the kind of policy you want, enter your information, and submit the payment. You can quickly get your car insured. In India, you can purchase car insurance online anytime and anywhere.

Offline

Unlike the instantaneous online car insurance purchase process in India, purchasing insurance offline requires manual labour. You can buy the policy directly from the insurance company, through your car dealer, or by going to the insurance agent. You must purchase the policy, submit the necessary paperwork, and make payment. Purchasing insurance offline requires you to be physically present, which makes the process a little tedious.

Purchasing insurance is akin to setting aside funds to shield your finances in the event of an accident. But when you have the support of an insurance company, the extent of these savings rises significantly. The government has made purchasing car insurance mandatory because no one should have to endure a financial loss due to an accident. If they do, they ought to receive just compensation.

* 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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