Car insurance in India: discover why it is mandatory
In India, along with a large population of residents, there is also a large population of cars that are difficult to manage. The increase in the number of vehicles has led to an ever-increasing increase in traffic and has also increased the probability of accidents occurring.
An accident can destroy the car owner, his family and third parties involved. This can leave the individual involved in the accident in a position of difficulty and financial crisis. Fortunately, the government of India has made it mandatory to have third party car insurance.
Why Is Car Insurance Compulsory?
The number of car accidents in India is quite high. The costs of such accidents are usually high enough to be borne by a single individual. This is where having third party car insurance comes in handy. As per Section 146 of the Motor Vehicles Act, 1988, it is mandatory to purchase a third party car insurance policy in India.
Individuals who have car insurance and have been in an accident can directly contact their car insurance provider. Insurance providers can help with finances by offering claim settlement.
Third party car insurance usually covers vehicle damage, physical injury, property damage, and accidental death. However, if the accident is caused by substance abuse, the insurance provider can reject the claim directly. If you have recently purchased a car, you can use an online car insurance calculator to get an estimate of the premium.
While third party car insurance is mandatory, most individuals prefer to purchase comprehensive car insurance to get all-round protection. Comprehensive coverage usually includes third-party liability, repair, maintenance, and damage resulting from an accident, fire, theft, or natural disaster. It protects the car by providing all-round protection against various misfortunes. You can check car insurance plans online and choose the one that suits your particular needs. *
What Are The Advantages Of Buying Car Insurance?
As mentioned above, car owners can choose from two types of car insurance in India: Third party car insurance or comprehensive car insurance. While having third party car insurance is mandatory by law, it may not offer adequate coverage. Therefore, a number of individuals opt for comprehensive coverage to get all-round protection. Read more to discover the main advantages of car insurance:
Offers financial protection
One of the biggest advantages of buying car insurance is that it provides protection against damage or loss caused to the insured vehicle. A comprehensive car insurance policy provides protection against theft, fire, and natural disasters, in addition to accidents. This means that if a car is stolen, the owner can file a claim with the insurance company. Likewise, if the car is damaged by fire or natural disaster, the owner can file a claim with the insurance company. *
No Claims Bonus
Another advantage of buying car insurance is the No Claims bonus (NCB). NCB is a discount on premiums offered by insurance companies to car owners who do not file claims during the life of the policy. This discount increases with each claim-free year, up to a maximum of 50% after five years. It provides incentives to car owners to drive safely and follow traffic rules, thereby reducing the number of accidents on Indian highways. It is important to ensure timely renewal of car insurance in order to get NCB. *
No-stress protection
Having car insurance gives peace of mind to car owners, knowing that they are financially protected in the event of unforeseen events. A comprehensive car insurance policy provides protection against a variety of risks, including damage to the insured vehicle, injury or death of the driver or passenger, and third party liability. This ensures that the car owner is protected from financial losses arising from these risks. *
How To Buy Car Insurance in India?
You can easily buy car insurance online or offline through the various channels available. If you are wondering whether to buy online or offline, read more:
Why online?
Purchasing car insurance online is quick and easy. You can buy it directly from the insurance provider's website. Most websites allow you to compare policies, get quotes, and buy insurance online. You can use an online car insurance calculator to access your coverage needs. You can choose a plan that suits your needs and complete the purchase process with ease. *
Why offline?
Car owners who prefer to buy insurance offline can do so by visiting the nearest branch office of the insurance company. They can meet with a representative, discuss their needs, and choose the policy that best suits their needs. Representatives can also provide guidance and assistance with the documentation process
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