Many people ask, why car insurance is compulsory in India? This is my money, and I’d like to spend it however I like, so is it a reason I am required to pay for insurance? In this article, we’ll specifically answer this question.
With the increasing amount of road accidents happening across the country, there is mandatory to purchase an insurance policy for your car. Learn more about the reasons why car insurance is required in India.
What is the reason for compulsory car insurance?
It is believed that, on average, within an hour, about 55 road accidents happen in the United States. What happens if the costs are too large to be paid by just one individual? Who will be responsible for the harm?
However, no insurance company will compensate those who don’t have insurance. If there is an accident that they caused, they’ll have to pay for the damages out of their pockets.
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In addition to paying for damages and medical treatment for injuries, the driver who was at fault may be facing severe legal liabilities. This is precisely why it is required in India to purchase Car Insurance. In Chapter 11 (Section 145 to 164) of the Motor Vehicles Act, 1988 it is mandatory to purchase a minimum Third-party Car Insurance policy in India.
Benefits Of Buying Car Insurance
There are two kinds of insurance policies for cars, Third-party Car Insurance, and Comprehensive Car Insurance. As we mentioned previously the third-party insurance policy is a mandatory insurance in India for all car owners. However, it doesn’t offer adequate protection for the owner.
The kind of insurance coverage you choose an insurance policy for cars will cover you for any damages to third-party as well as for damage to your own. Personal damage insurance coverage covers the expense of treating injuries suffered by the owner-driver as well as the cost of repair for the damages.
No Claim Bonus
In the course of an active policy year, when there has not been a claim and no claim has been made, you can be eligible for a No Claim Bonus i.e. you will receive a discount on the amount of the car insurance premium.
Peace of Mind
Car insurance provides absolute security. There is no need to be concerned about a financial crisis that could arise when the vehicle is damaged or stolen.
How to Purchase Car Insurance in India?
There are many ways in which you can have your car insured for unforeseen incidents. Two important methods are offline and online. Here’s how to purchase car insurance:
The purchase of car insurance online is the most convenient option to purchase insurance in the present. There are many general insurance firms in India similar to us i.e. Acko General Insurance, which offers insurance for cars online.
Simply go to the car insurance page, select the type of insurance complete your details and then pay. Your vehicle will be insured within a few minutes. You can purchase insurance for your car online in India anytime and from any location anytime.
In order to purchase insurance offline, it is a manual procedure, in contrast to buying insurance for cars online in India which is fast. You can purchase the policy via your dealer for cars, an insurance broker, or go to the insurance company. You will need to present the required documents, pay payments, and purchase the policy. Since you must be physically present to purchase insurance on the internet, it can be an arduous process.
The Bottom Line
Insurance is like taking a savings plan to cover yourself financially in the event that you are involved in an accident. However, the amount of savings is increased to an enormous amount when you’ve got an insurance provider to provide you with. It is now compulsory to purchase car insurance since there is no reason for anyone to be financially impacted by an accident. In the event that they are, they must be compensated in a fair manner.
Car Insurance FAQs
How will I be affected if put off the insurance on my car?
What happens if your car insurance is canceled? When your car insurance is canceled, you might have to buy an insurance policy that is new. It is also possible to lose accrued benefits of the expired policy, including the no-claim bonus. Additionally, switching to the new policy could result in an extensive vehicle inspection as well as an increase in premium.
How many claims can be made under HDFC automobile insurance?
The policyholder has the right to only make 3 claims that are subject to windshield damage and the loss or damage to the vehicle parked by external causes, such as earthquakes, floods, etc.
What is the maximum number of times we can make claims on the insurance on our car?
There’s no limit on the number of claims that can be filed within your coverage which means you can make as numerous claims as you’d like. But, submitting an insurance claim can alter the no-claim bonus. Claim Bonus, and with multiple claims, your insurance increases when you need to renew your policy.
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