Why is Car Insurance Compulsory?
It is estimated that on an average, in one hour, around 55 road accidents occur in our country. What if the cost is too high to be borne by one person? Who will take the responsibility for the damage?
This is where car insurance comes into the picture. Those who have a valid insurance policy can approach their insurer and voila! Problem solved! The insurer will pay for the damage. However, no one will cover the people who do not buy insurance. And if they cause an accident, they will have to bear the cost from their pocket.
Apart from paying for the damage and medical treatments for injuries, the drivers at fault could face serious legal liabilities. This is exactly why it is a law in India to buy Car Insurance. Under Chapter 11 (Section 145 to 164) of The Motor Vehicles Act, 1988, it is compulsory to buy at least a Third-party Car Insurance Policy in India.
Advantages of Buying Car Insurance
There are two types of Car insurance policies,
Third party Car Insurance and Comprehensive Car Insurance. As mentioned earlier, a third-party policy is compulsory insurance in India for every car owner. However, it does not provide adequate coverage to the owners themselves.
Coverage
Depending on the type of coverage, a car insurance policy will insure you for damages caused to the third-party and for own damage. Own damage includes cost of treating injuries of owner-driver and cost of repairing damages.
No Claim Bonus
During an active policy year if no claim has been raised, you will be entitled for a No Claim Bonus i.e. a discount on the amount of car insurance premium.
Peace of Mind
Car insurance offers complete peace of mind. One does not have to worry about a sudden financial crunch which may occur if the car is stolen or damaged.
How to Buy Car Insurance in India?
There are many ways in which you can get your car insured against unforeseen events. Two of the important ways are online and offline. Here is how to buy car insurance: