How Important Is Having A Car Insurance In India?

 Your set of automobile insurance documents should always be kept safely. Whether you drive a brand-new vehicle or the used sedan your parents gave you when you turned 18 as a gift, you will undoubtedly have to buy car insurance online.

In India, there are three forms of automobile insurance:

  • Third-party cover: In the event that your car is at fault for an accident, this third-party insurance will pay for any injuries or damages to uninvolved parties. The Motor Automobiles Act of 1988 mandates that all automobiles in India have third-party insurance.
  • Standalone own-damage insurance: This protects your car against any damage. The loss or damage may be the result of a theft, natural disaster, or accident.
  • Comprehensive cover: As the name implies, comprehensive coverage encompasses any losses or damages to a third party or your vehicle.
  • Personal accident protection: Under the General Regulation (‘GR’)-6 of the India Motor Tariff, 2002[1], every general insurance provider is required to include a personal accident protection option for the owner-driver as a component of their comprehensive or third-party package motor insurance

Reasons Why Auto Insurance Is Required

The owner-driver of the car, as well as the third party, may be affected by such accidents in a short-term or long-term manner.

  • Ensure the third party’s injury is treated medically: The expense of hospital care might be high if a third person is hurt in an automobile collision. With third-party insurance, the insurance provider pays for the procedure, ensuring that the third party receives the necessary care.
  • Ensure that damaged property is repaired: What occurs when a vehicle must swerve suddenly to avoid hitting a parked automobile while trying to save a stray puppy in the middle of the road? The owner-driver of the first car may be held accountable for any damage to the other vehicle.
  • Provide a financial safety net to owner-driver: In the sad event that the owner-driver suffers injuries that result in a lifelong disability, the immediate implication is that they will not be able to support themselves financially. The owner-driver is given financial reimbursement in this situation by the auto insurance provider.
  • Provide financial support to surviving family members: Thousands of people pass away in car accidents each year. Even if passing away causes loved ones great sorrow, the consequences of the person’s passing are as substantial. If the owner-driver is the only source of income for the family, their passing could put the family under stress and create financial instability.
  • Peace of mind: A hospital visit nowadays can result in a hefty charge, even for minor problems. This is why it ensures that the focus can be on recovery rather than the financial burden of medical care when the third party’s hospital bills are paid by your auto insurance.

You may draw the conclusion that by making it compulsory to buy car insurance online in India, everyone who is directly affected by a car-related accident is protected financially.

Make sure you renew your car insurance on time.

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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