Why Is Car Insurance Mandatory in India?

• Why do You Need an Insurance?
• Why is Insurance Mandatory in India?
• What is Third-Party Insurance
• What is a Comprehensive Insurance Policy?
• What Does an Insurance Policy Cover in All?
• Medical Expenses for Injured Third Party
• Repair of Damaged Property
• Financial Safety
• Financial back-up for Family
• Peace of Mind
• Final Thought

Why do You Need an Insurance?

India is one of the most populous countries in the world. There are a more significant number of people on the roads with vehicles today. The increased number of cars on the road leads to the probability of increased road accidents and fatal injuries. In such accidents, there are many people whose lives are devastated and are often financially scrutinized. This is where insurance policies come in handy. Insurance agencies ensure you are financially backed when you need support; it has become so helpful that driving without a third-party policy is illegal.

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Why is Insurance Mandatory in India?

Our country faces quite a high number of road accidents per year. The cost incurred due to such accidents is also high and is difficult for an average individual to bear. Here is where having valid car insurance plays a significant role in availing funds when required. As per Section 146 of the Motor Vehicles Act of 1988, buying a third-party car insurance policy is mandatory in India.

If you have car insurance and are stuck in a situation like this, you can contact your insurance provider for claim settlement and not worry about financial burden.

What is Third-Party Insurance

Third-party car insurance typically covers vehicle reparations, physical impairment, property damage, and accidental demises. However, there are rules for every insurance policy. For example, if the accident was caused by substance abuse, the insurance provider most likely may deny the claim at once. In this coverage, even if something happens to a third party because of an accident caused by your vehicle, the insurer will compensate the financial settlements on behalf of you, the individual.

What is a Comprehensive Insurance Policy?

Many people prefer to buy comprehensive car insurance coverage for overall protection instead of opting only for a third-party policy, which is mandatory. A comprehensive cover typically covers third-party liabilities, repairs, maintenance, and damages caused by an accident. It also covers the same in fire, theft, or natural calamity cases. It safeguards the car by offering coverage against various adversities.

What Does an Insurance Policy Cover in All?

Medical Expenses for Injured Third Party

The insurance provider takes care of the hospital expenses for an injured third party in an accident. It also absolves the car owner or driver from any financial obligation to pay for the treatment due to the accident.

Repair of Damaged Property

Damages caused by accidents are also repaired and paid for by the insurance provider. For instance, due to some circumstance, you swerve on the road and ram into a parked car. You are entitled to pay money for the damages caused to that car. The third-party insurance cover provides financial aid for such a situation.

Financial Safety

In certain unfortunate situations, the owner or driver of the vehicle in an accident sustains injuries that lead to permanent disability. In such situations, the person cannot earn a livelihood. This is where the car insurance company provides monetary compensation for a dignified life to the person involved.

Financial back-up for Family

Death in a family is a massive loss in itself. It also has other profound implications within a family. If the person who passed away in an accident was the sole breadwinner in a family, the demise could bring financial pressure and insecurity to the Family. A relevant insurance policy provides monetary compensation to the next of kin for survival due to a mishap.

Peace of Mind

This is perhaps one of motor insurance's most underrated yet valuable aspects. Simply having insurance coverage can bring a lot of peace of mind to an individual. It ensures a stress-free and relaxed driving experience for every individual.

Final Thought

Now you know why car insurance is mandatory in India and what the use of availing one is. If you still have not availed of valid car insurance, get one soon. It lets you drive around the city in peace and will come in handy when you have a financial requirement.

Getting a car insurance is very easy today. You can get it at the convenience of the internet. You only need your car's registration number, computer, and internet connection. You can choose from various insurance providers in the city for your vehicle and choose from the list of options available according to your needs.