Is Car Insurance mandatory in India?

Have you ever boarded the wrong train and reached a destination without much money in your pocket? Or have you ever tried Scuba diving without a guide and proper equipment? For sure the answer to both of these must be no right? In both the above situations, you definitely need a saviour. Therefore you do not leave things upon luck in these types of situations. But when it comes to driving around without a car insurance, it amazes us how people can be so fearless.

According to a recent report, on an average around 55 road accidents occur in India in an hour. When such an accident occurs, whom do people blame? Poor streetlights? People walking blindly on the road? Or their own bad luck? No one wishes to take up that blame and pay the damage caused out of their pockets. This is where car insurance acts like a Superman! Always to the rescue.

Did you know that car insurance is mandatory in India. Apart from a personal choice, it has not become legally compulsory for every car owner to purchase car insurance in India. Car insurance is basically a contract between two parties i.e. the insurance company and the owner of the car. This contract protects your car against financial loss in case of accident or any theft. The insurance company agrees to pay the loss as covered under the policy. 

And Yes, Under section 145 to 1164 of The Motor Vehicles Act, 1988, it is mandatory to buy a car insurance policy for every car owner. 

You can’t Escape the Law!

Being an Indian citizen, you will have to understand why car insurance is mandatory in India and what could be the consequences if you don’t have one.

You will have to face the following penalties is you drive without a valid car insurance policy in India:

  • You have to pay a fine of Rs. 1000 and/or get imprisoned for 3 months
  • Your driving license shall be cancelled
  • Your car’s registration too shall be suspended. 

Now that you have understood why car insurance is mandatory in India, let’s look into the benefits that the insurance can give you.

Benefits of Car Insurance

Anyone could get stuck on the road in a car accident or a car engine failure. In any such cases, car insurance policy acts as a saviour.  

  • Garage networks: Car insurance companies maintain garage networks. This helps you with garage shops which could provide you cashless repairs.
  • No claim bonus: This is a discount on your premium amount offered by the insurance company if you do not make a single claim during your policy period. It acts as a reward for your vehicle.
  • Personal accident cover: Car insurance provides personal accident cover for a predetermined amount like disability, Death due to an accident etc. 
  • Add on benefits: You can always get your insurance customized by adding on the scope of the things covered like Zero Depreciation, Roadside Assistance, Engine Protection, Passenger Cover etc. 

Now, next time if a question like- ‘Why is car insurance mandatory in India’ or ‘if there are any benefits of car insurance to mé’ come in your mind, you exactly know the utter importance of a car insurance policy in India.

Driving Responsibly is driving like a true rockstar!

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