Why Is Car Insurance Mandatory in India?

    As a driver if there is one thing that you always carry with you it is your car insurance papers – they are always placed safely in the glove box of your vehicle. It does not matter which car you have – an old sedan that you got from your parents when you turned 18 or a new car – you need proper insurance.

    Ensuring proper medical care for the third party

    This is the first of the reasons why you must have car insurance in India. In case of an accident where you end up injuring another individual, hospital treatment for the latter could be costly. However, with your third-party car insurance coverage, those costs are covered by your insurer. This makes sure that the injured individuals get the care that they need in such circumstances. Plus, it also makes sure that you – the car owner-cum-driver – are absolved of the financial obligation to pay for the treatment of the injuries you have caused in this instance.

    Ensuring repair of damaged property

    There can be cases where you have to sway your car at the last second so that you can save a stray dog in the middle of the road. You might end up ramming your vehicle into another car that is parked in the vicinity. Now this means that the car you rammed into will be damaged and only you will be held responsible for said damages. However, if you have third-party car insurance coverage you need not worry as in this case the insurer will foot the bill to repair the damages that you have caused.

    Providing you with a financial safety net

    There could be an unfortunate accident where you suffer such grievous injuries that you become disabled for the rest of your life. The immediate implication of this could be that you can no longer do the work that helps you earn your livelihood. In such a case, you will receive financial compensation from the car insurance company. Now, since car insurance in India is mandatory you can be sure of leading a dignified life even under such morose circumstances.

    Providing financial compensation to the next of kin

    Each year in India thousands of people lose their lives in car accidents. Death in itself brings untold grief to the near and dear ones of the departed but the financial implications of someone passing away are not to be underestimated either. This is especially so when the owner-driver is the only breadwinner of the family – in such cases, death can bring about financial security and put immense pressure on the people concerned. However, if the insured has the foresight to include accident cover in their coverage they can at least guarantee the survival of their families.

    Providing peace of mind

    Today, if you visit a hospital even for the smallest of issues the bill of treatment could be quite a substantial one. This is why when you have third-party car insurance to cover the costs of injuries and damages caused by you in a car accident it makes sure that you can focus on recovering rather than worrying about the financial costs of affording healthcare. If you have comprehensive coverage you can be sure that your medical treatment will be paid for by the insurer as well – you will not have to worry about it at all.

    Now, since you know the reasons why car insurance is mandatory in India you will be worried about getting proper car insurance for your vehicle. If you already have one it is great and even if you do not there is no need for you to worry.

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