Why vehicle Insurance Is Mandatory In India?
Vehicle refers – bike/car
There are thousands of reasons why you should actively protect your vehicle and yourself in India.
Why vehicle Insurance is Must in India
Driving in India is a luxury that thousands of people partake of every day. It is now quite simple to buy a vehicle in the country, and with higher disposable incomes, most households are able to afford more than one vehicle, too. Having one’s vehicle increases one’s mobility and eliminates dependence on public transport.
However, driving in India also comes with its own perils. We often hear vehicle owners rue traffic indiscipline, lack of legal enforcement by road authorities and myriad other complaints about the traffic scenario in India. Cases of road accidents and rule-breaking are reported in the newspapers on a daily basis. Considering these factors, it is important to get vehicle insurance right after one buys a vehicle.
Why do you need vehicle insurance?
It pays for damages
Not only are vehicles expensive, paying for their repairs is costly, too. Sometimes, your vehicle may be damaged due to someone else’s negligence. A vehicle colliding with yours, or you swerving to avoid a jaywalker and crashing into a wall, or even a stray cricket ball cracking your windshield can set you back by a considerable amount of money. However, if you have vehicle insurance, you need not pay for these repairs by yourself.
It reduces your liability
Taking Third Party Liability (TPL) vehicle insurance coverage is mandatory in India. The TPL policy covers you against the legal ramifications of an accident caused by you. For example, if you happen to cause an accident that results in damages to another person’s property or injuries to another driver/pedestrian, the insurance will pay for their treatment and save you from the legal repercussions of the case.
It costs less when purchased online
Buying vehicle insurance online results in lower premiums and hence, a cheaper policy. This is because the insurer has lower operating costs when transacting over the Internet, and is happy to pass on the component of money saved on paying commission to a broker, to the customer. Buying vehicle insurance online has other advantages, such as renewing the policy in minutes and paying premiums without any paperwork.
It compensates your family after your demise
The most unfortunate outcome of a road accident is the vehicle owner’s demise. Once the bread-earning policy holder has passed away, it might become difficult for his or her family to sustain its daily life. However, a vehicle insurance policy can help pay the family’s expenses after the unfortunate event.