Everything is unpredictable, whether it’s your life or your stuff. We should insure our automobiles in the same way that we cover our lives and health. This is because car accidents are unpredictable. It can happen to anybody, regardless of their driving expertise. As a result, if your automobile is covered, the third-party insurance provider bears the financial burden in the event of an accident.
Purchasing a car insurance is an indemnification. When an accident occurs, the insurer ensures that the vehicle’s damages are fixed. In severe instances, such as a total loss, the insurance provider will pay the entire amount.
In reality, according to the Motor Vehicles Act of 1988, every owner of a car on public roads is required to have an insurance coverage. The insurance should cover the amount that the owner will have to pay if an unexpected accident occurs. This is because the car’s owner is legally obligated to recompense for unintentional death, physical injury, or property damage. In such a circumstance, the insurer would compensate for the insured or the individual whose automobile was involved in the accident.
Motor Vehicles Act, 1988
The Motor Vehicles Act of 1988 addresses the legal provisions that apply to the following:
- A vehicle’s registration
- The car owner’s driver’s licence
- An automobile must have mandatory insurance.
The Act simply requires third-party liability insurance. If you are discovered operating a car without at least third-party liability insurance:
- Pay a Rs.1,000 fine.
- Sometimes, you may even face a three-month prison sentence.
- Your driving privileges may be revoked.
- Your vehicle’s registration might be suspended.
As a result, it is critical that you follow the law and gain a sufficient insurance coverage for your vehicle.
Why do you require car insurance?
There are various reasons for this, one of which being indemnification against unpredictable financial loss.
- Reduces your liability: Purchasing automobile insurance decreases your financial liability in the event of an accident. The consequences of damages that you or others incur to the level of bodily harm can be minimised. A Third Party Insurance policy will also cover you for any connected legal expenditures.
- Pays for the losses: Indian roadways are a dangerous area; you never know what will happen to you (literally). And believe us when we say that restoring an accident-damaged vehicle may soon become a money pit. As a result, automobile insurance protects you from such risks.
- Pays for medical expenses: With an accident, there is a high likelihood of injuries requiring medical treatment. Cuts, bruises, and/or fractures are an unavoidable result. As a result, automobile insurance protects you from costly hospital expenses.
- It assists you in being stress free: If you are not a confident driver, insurance will provide you with peace of mind. Even if you’re an experienced driver, car insurance can help you relax on the road.
What are the different car insurance?
In India, there are three forms of car insurance:
Car Insurance with No Depreciation
Bumper to Bumper Insurance is another name for Zero Depreciation Insurance. It provides comprehensive coverage without considering the depreciation of your vehicle. In the event of an accident, you will be fully covered by your car. There will be no depreciation deductions in the covered amount. When compared to a conventional insurance policy, Zero Depreciation Insurance requires a premium increase of 15% to 20%. For new automobiles, a Zero Depreciation Policy is a must-have.
Car Insurance That Covers Everything
Comprehensive automobile insurance protects against vehicle damage and the death of the driver or passengers. The insurance covers the damage caused by the car to a third-party vehicle, property, or person.
Third-Party Liability
Third-Party Liability (TPL) Insurance Third-party liability insurance provides limited protection. This sort of car insurance solely protects you against the costs spent because of damage caused by your vehicle to another vehicle, property, or person.
A PROPOSAL WAS RECENTLY FLOATED. CAR INSURANCE COVERAGE COULD BE FOR FIVE YEARS OR MORE IN ADDITION TO THE EXISTING ONE-YEAR INSURANCE, ACCORDING TO THIS. THE MODALITIES OF SUCH A PROVISION HAVE NOT BEEN FINALIZED YET. BUT THIS WILL UNDOUBTEDLY BENEFIT CAR OWNERS WHO FORGET TO RENEW THEIR VEHICLE INSURANCE ON TIME. THIS IS BECAUSE IF YOU DO NOT RENEW YOUR POLICY ON TIME, THE COMPANY WILL NOT COVER THE TIME SPENT BETWEEN THE DATE THE INSURANCE COVER ENDED AND THE DATE UNTIL IT IS RENEWED. IF THE CAR IS DAMAGED AS A RESULT OF AN ACCIDENT DURING THIS INTERREGNUM, NO INDEMNITY WILL BE PAYABLE.
How much insurance should I get in my car?
The premium for your automobile is affected by several factors.
- Insurance Type: Foremost, the premium is determined by the type of policy you intend to gain. TPI premiums are much lower than those for comprehensive or Zero Depreciation Insurance. However, Zero Depreciation will cost you over 15% to 20% more than the standard.
- The brand, model, and fuel type: Diesel vehicles command a higher premium than gasoline vehicles.
- Yes, the driver: his or her age, and job all have a part in determining the premium for a car.
- Geographical location: The location of the vehicle is also important. Urban vehicles get a higher premium.
What isn’t covered by my car insurance policy?
You can get a better grasp of your insurance package’s terms and conditions by speaking with your insurance provider. We recommend that you carefully study the clauses that are listed while getting car insurance.
- Some of the vehicle insurance terms and exclusions are shown below.
- Any vehicle-related concerns that arise because of the vehicle’s regular ageing
Consequence loss - The vehicle’s mechanical breakdown
- Tires, for example, suffer from wear and tear.
The coverage does not cover losses incurred because of driving the car outside of the country’s borders. - If the individual is driving without a licence, the insurance will not cover them.
- If the motorist was under the influence of alcohol or drugs, no coverage will be provided.
- Vehicle damage sustained during a battle or nuclear assault
- Damages will not be covered if you use the automobile for purposes other than those specified in the insurance.
How do you file an car insurance claim?
If your vehicle is involved in an accident, call your insurance company. The following is the method for filing the claim.
- In the event of an accident, you must submit a FIR with the police station.
- If another vehicle is involved, the driver or a passenger should take down the licence plate.
Contact your insurance company right away. - To process the claim, provide papers such as RC, PAN, Aadhaar, and a copy of the FIR to the insurance company.
- Make a claim with your insurance carrier and keep a record of the claim reference number. When you gain a car, the first thing you should do is get insurance for it.
Keep these variables in mind when you select the insurance coverage that is best for you and your vehicle. Keep your eyes on the road and drive safely!
