Why is Third Party Car Insurance a Necessity in India?

Many people have this question in their head, that why is buying a motor insurance policy mandatory in India? Well, you must know and hear about the number of accident cases taking place every day. When you buy a car, you’re definitely not prepared to bear the expenses of a completely damaged car. The matter gets worse if you’ve hit someone else’s property or injured another person. In this situation, the case becomes a legal matter. How are you going to handle this on your own?

Why is it necessary to buy car insurance?

If you have a valid car insurance policy, you can immediately turn to your insurer for help. It is your insurance provider who will pay for the damage and you can stay relaxed. But if you do not buy insurance, you will be left uninsured and will have to bear all the expenses on your own, and also handle the legal liabilities.

People also get severely injured in such accidents, and so the insurance policy also takes care of the medical treatment. This is the reason why it is mandatory to purchase at least a third-party car insurance in India, under The Motor Vehicles Act, 1988.

Pros of having a car insurance policy

There are mainly two types of car insurance policies available- third party car insurance and comprehensive policy. Like mentioned earlier, a third-party policy is mandatory for every car owner. However, the plan does not cover you from damages caused to your car as a result of an accident. This is when you can purchase a comprehensive car insurance policy.

Let us now look into the benefits it offers to us:

  1. Coverage

Based on your budget, you can choose the type of coverage you wish for. Accordingly, the car insurance policy will offer you coverage for damages caused to either third-party or your vehicle. Under own damage, you will receive coverage for treating injuries caused to you and the cost for repairing the damages caused to your car.

  1. No Claim Bonus (NCB)

Many people have a common question in mind that is, what happens if I don’t raise a single claim in the entire policy term. Well, if you’ve been driving safely and have had a claim-free year, you will receive a concession on the premium amount, termed as the No Claim Bonus (NCB), the next time you renew your car insurance policy.

  1. Peace of Mind

Last but most importantly car insurance offers you peace of mind. You don’t have to worry about facing a sudden financial burden that may occur as a result of car damage or theft.

Purchasing car insurance

There are two ways in which you can buy a car insurance policy- offline and online. If you’re buying the policy offline, you will have to follow the usual manual process and visit the insurance company’s branch office. However, if you’re purchasing it online, you will simply need to visit the insurer’s website and go to the car insurance page, fill in the necessary details, make the payment, and receive your policy within no time.

The government has only made buying car insurance mandatory because the damage suffered from an accident could lead to significant financial loss. And if you do meet with an accident, you will fairly receive compensation. However, selecting the right policy also matters here. To ensure you’re not paying more than you should, you can first check the policy price online using the car insurance calculator that is available on your insurer’s website, and get the estimated value of your car insurance premium instantly.