Cars are no longer considered a luxury item. In fact, many households today have more than one car. Owning a car increases your mobility and comfort. Car ownership, no doubt, has its own perks, but it comes with certain mandatory requirements. That is why we often face this question, “Is car insurance mandatory in India?”
Is vehicle insurance compulsory in India?
Vehicle owners should mandatorily have valid insurance all the time. There are multiple reasons for this. Let us examine them one by one. It will pay for the damages: Car is a high-ticket investment. Repairing the damages suffered due to an accident can be very expensive. Many times, somebody else’s negligence can leave a dent on your car. A cricket ball can break the windshield, causing monetary losses. If you have a valid car insurance policy., you will not have to worry about paying from your own pocket. The insurance company will bear the repairing cost. You can even avail of cashless facility at the garage that is part of the insurance company’s network.
It will reduce your liability: When you buy a third-party liability insurance, you will be covered against the legal liabilities of the accident involving your car. The damages to the third party will also be covered by the insurance policy. It will save you from the legal liabilities in the case. Also, it is mandatory to have third-party insurance coverage in India. It is, however, not a good idea to buy just the third-party insurance coverage. Buying comprehensive insurance is always a good idea.
Covers hospitalisation expenses: Accidents can leave you with bruises and cuts. Some accidents, however, can cause serious injuries and fractures that need hospitalisation. Your valid car insurance will cover hospital expenses and you need not pay for expenses in case of hospitalisation.
Protects your loved onesMany road accidents cause the unfortunate demise of the car owner. If the car owner is the breadwinner of the family, it will become difficult for the family to sustain their life. A car insurance policy can help the family handle financial expenses in case of an unfortunate event.
Now you know why vehicle insurance is compulsory in India. Do invest in a car insurance policy that fits your needs. It is advisable to opt for a comprehensive policy to enjoy the best possible coverage.
It is also a good idea to compare different policies before zeroing in on a particular policy.
Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.