Why is Car Insurance Mandatory in India? Here's What You Should Know

There are three different types of motor insurance that you can explore:

Third-Party Insurance

This type of insurance promises coverage in case of damage to a third party or property. Remember that purchasing third-party insurance is mandatory according to the Motor Vehicle Act, 1988.

Standalone Own Damage

This type of insurance offers coverage for damages or loss done to the vehicle or owner due to fire, explosion, theft, etc. and can be purchased when you have the mandatory third-party insurance.

Comprehensive Car Insurance

This type of insurance combines the benefits of own damage and third-party insurance. You can also explore add-ons to meet any additional requirements.

Purchasing Car Insurance: More than a Legal Compliance

With innumerable cars on the roads, ensuring road safety has become a national importance, and car insurance is at the centre of this. Let’s unveil how purchasing car insurance is a legal requirement and more.

A Legal Compliance

Purchasing car insurance is compulsory in India under the Motor Vehicle Act, 1988. So, for you to drive your car legally on Indian streets, you need to own an insurance plan for your vehicle. You are free to choose the type of insurance plan that best meets your needs. While purchasing at least third-party insurance is mandatory, it is suggested that you opt for comprehensive car insurance.

Protection from Financial Burden

As a diligent driver, you might find it unlikely that your vehicle will be in an accident. However, given the uncertainties on the road, car insurance saves you from the financial burden in case of damage or loss done to you or your vehicle. Damages Covered: A car insurance plan typically offers coverage in case of damage or loss due to theft, fire, explosion, accident, etc. You can explore insurance plans with Jio Insurance Broking, which offers personal accident coverage and a lot more.

Coverage for Third-Party Liabilities

Imagine that under an unfortunate event, your vehicle ends up damaging a third party or property. You probably have to pay a hefty compensation. Third-party car insurance will take care of your financial liabilities for a third party.

Compensation to Family Members

This might not be a pleasant thought, but you need to think about your family in case you meet with an accident. Many insurance providers offer compensation to the victim’s family members if the victim is the sole breadwinner of the household. Did You Know that there were around 4,50,000 road accidents reported in India in 2022, out of which 1,50,000 resulted in death?

Promoting Safe Driving

Motor insurance not only promotes financial coverage but also promotes safe driving by offering exciting benefits and discounts for driving diligently. Sounds exciting, right? You can now explore plans with Jio Broking Insurance, which offers amazing benefits for not raising claims in one year.

Did You Know that you can claim up to 50% discounts while renewing your policy with No-Claim Bonus?

What if You Don’t Own Car Insurance?

You are probably on board with the importance of car insurance and what plan to purchase. Remember that in the absence of motor insurance, you can find yourself:

1. Facing hefty penalties for infringing the mandatory provisions of the Motor Vehicle Act, 1988.
2. Facing a financial burden if your vehicle gets damaged or stolen.
3. Dealing with the diminishing market value of your vehicle.
4. Facing the challenges of handling third-party liabilities.
5. Facing heavy medical bills in case of a personal accident.

Summing Up

Motor insurance is a necessity for every vehicle owner as it not only saves you from legal penalties but also offers a helping hand anytime you land yourself in a vehicle-related crisis. In today’s time, insurance companies are designing plans that align with an individual’s personal requirements without having to pay unreasonable premiums.

Head straight to Jio Insurance Broking car insurance to find the latest plans, exciting offers and affordable premiums for your beloved car.