Car Insurance Mandatory Here’s Why!

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Car Insurance Mandatory

Since the LPG reforms of 1990’s Indian market today has about 42 car brands available for its customers within India alonealong with the option of import. Cars have different meaning for each individual for some it is a dream, for some it is an accessory. Driving has become a necessity these days, with rising urbanization there has been a rise in road traffic, no matter how safe you drive your safety is not in your hands when it comes to road safety.

Insurances can be distributed through various channels like Individual Agents, Brokers, Banks, and Online etc. Motor insurance in India accounts for 34.1% of the non-life insurance premiums earned. We call passenger vehicle insurance in lay terms as car insurance though Motor insurance also includes Commercial Motor Insurance(Light Motor Vehicle, Heavy Motor Vehicle, and Other Commercial Motors).

Why it is necessary to get car insurance in India?

  • It reduces your liability in case of accident
  • Law suits including legal fees are covered in damages
  • Covers damages beyond accidents like terrorism, earthquake etc.
  • It compensates your loved ones in case of demise
  • Costs less if purchased online

Car Insurance

Consequences of not having car insurance

Now there are consequences of not having car insurance as well. For example, let us assume you abided by all the traffic rules but hit a car accident. So, here you will have to bear the losses, but if you do not have car insurance, there are other consequences that you will have to face too. Such as:

  • Suspension of your driving license
  • Legal proceedings
  • Traffic fine for not having car insurance
  • Lack of financial support in case of damage

As much as prestige we consider in showing off our fancy vehicles to the relatives who never believed in you, it is equally important to buy the right insurance for you and your family’s safety because “If there is a life there is a way”. Insurance saves you from unprecedented damages and situations. While we spend so much money on new models and accessories investing a bit on your safety is a smart move.

But what can happen if you don’t have car insurance?

  • Driving license suspension
  • Car registration suspension
  • Legal action against you by authorities
  • Vulnerability to heavy financial loss

Life is a gift from God and accidents cause grave losses to not just yours but others families as well so buying insurance should not be an obligation but rather your wise decision. However still many remain doubtful before buying it without properly understands its scope.