Why Is Buying Insurance Compulsory In India For Cars?

Published on 09-Nov-2022

The continuous surge in the automobile or vehicular requirement in India has propounded a cautious figure for the safety and security of the vehicles and any loss associated with the damage. Cars are one example in the automobile sector that offers daily traveling convenience to people and solves the problem of reaching their destination on time.

But how many times are we conscious about the safety and security aspects of the vehicle, personal loss, accidental damage, thievery, and other financial backups? To cover all the essentialities, a car insurance plan offers several advantages to make you stress-free and financially independent over any loss. 

Types Of Car Insurance:

Based on the loss, involvement of a number of parties, and damage to the insured person, car insurance coverage provides you the various types of plans as per the suitability and financial liabilities attached to the plan.

Comprehensive Car Insurance: Under this insurance plan, a car insurance company provides coverage to both third-party liabilities and the damages that happened to your own car.

Third-Party Car Insurance: This type of car insurance covers the damage, tear and wear of the components of the car, and accidental loss to the third party. Third-party cover assures benefits to the third parties involved in the accident and compensates for the damages that are caused by your car. It is mandatory for all vehicles including commercial vehicles and private cars to have a third-party insurance plan as per the Motor Vehicles Act,1988.

Standalone Own Damage Cover: This car insurance policy covers any loss or damage to your car due to an accident, theft, or natural disaster. It offers financial backing to your motor vehicle during any mishappening or accidental damage. 

Personal Accidental Cover: Under this cover, it is compulsory for every general insurance company to provide personal accident cover to the owner-driver as their third party according to the General Regulation (`GR`)-6 of India Motor Tariff, 2002. It offers financial benefits to the owner-driver in case of any bodily injury, damage, or disability due to a car accident. 

Why Do You Need To Buy A Car Insurance Plan?

Whether you are looking for a car to buy or already have a vehicle/car, you need a car or vehicle insurance plan to protect your motor assets and compensation for any physical loss during any adverse incident. You also need to ensure various liabilities arising from the use of your motor vehicle if your vehicle is devoid of car insurance.

Let us discuss some reasons why you need to buy a car insurance plan.

Reduce The Liability:
Buying a car insurance plan ensures the safety and financial support of the third party during any accident caused by your car/vehicle. It provides monetary benefits to the third party member if he/she gets any injury, damage, loss of vehicle, etc.

Financial Safety To Owner-Driver:
The car insurance plan also offers financial safety cover to the owner-driver. It reduces the risk and stringency of any financial backing during hospitalization or injury caused by an accident.

Effective Investment for the Future:
Investing in the car insurance plan facilitates the monetary support to compensate for the loss of a vehicle, theft, damage caused to the car, or accidental injury. You would be paid for your vehicular damage or hospitalization in case of injury.

Provide Financial Compensation To The Family Of The Deceased:
It also provides financial or monetary support to the family members of the deceased. It acts as a safeguard to protect the family members after the death of the insured person. Even the compensation to be paid to the family of the deceased was introduced under Motor Tribunals Act which has reduced the financial burden and expenditure on the family.

Provide Peace of Mind and Help You To Live Stress-Free:
If you are financially protected, you need not think about the consequence of any damage or loss that may affect you financially. A car insurance plan offers many advantages to the owner, third party, or family members of the deceased to ensure no financial restraints.

Buy Your Preferred Car Insurance Plan With Policy.Online

Policy.online provides you with car insurance plans from various top car insurance companies in India. You can easily obtain quotes for your chosen plan from a number of insurers and compare them accordingly to opt for a suitable insurance policy.

For any queries related to the car insurance plan, you can talk to our policy adviser by dialing (+91)011-665-00-000 or mail us at info.in@policy.online. We would be glad to assist you in solving your doubts and queries.