Why is it mandatory to have vehicle insurance in India?

The Motor Vehicles Act, 1988, mandates this due to the following reasons: It reduces your liability – Buying third-party motor insurance is lawfully necessitated for all vehicle owners in India. Third-party injuries/death is covered under this insurance plan. Damage to third-party property is offered coverage as well.

Why is it important to have car insurance?

The primary reason car insurance is required is because of your liability, i.e., responsibility, for any damage you cause. Although you may carry optional comprehensive and collision coverage to cover your vehicle, the coverages required by most states’ laws are bodily injury and property damage insurance.

Can you drive a car without insurance in India?

The Necessity of Car Insurance While Driving Driving without a car insurance policy is illegal as per the Motor Vehicles Act, 1998. Third-Party Liability Insurance is mandatory for all motor vehicles to drive legally in India.

Is insurance compulsory in India?

In India, and all over the world, getting your car insured is a compulsory by law, not an option. The Motor Vehicle Act of 1988 makes it mandatory for all vehicle to be covered under an appropriate insurance policy before they can ply on the road.

What insurance is mandatory?

Third party insurance is the bare minimum you need to drive legally on public roads. It has been compulsory since it was introduced with the Road Traffic Act 1930. However, third party only covers the other party’s damage and injuries if you’re involved in an accident where you’re at fault.

What is the fine for no insurance in India?

As per the new Motor Vehicle Act 2019, the fine for the first offence of driving without insurance policy is Rs. 2,000/- and/or imprisonment of up to 3 months. Earlier, this fine applicable was Rs. 1,000/- and/or imprisonment of up to 3 months.

Which car insurance is mandatory?

Taking Third Party Liability (TPL) car insurance coverage is mandatory in India. The TPL policy covers you against the legal ramifications of an accident caused by you.

Is it mandatory to get car insurance?

In India, as per the Motor Vehicles Act, it is mandatory that all vehicles that operate in any public space must have a motor vehicle insurance cover. Policyholders must have at least ‘third party liability’ motor insurance cover even when opting for the basic insurance plans.

Can you ever drive without insurance?

There’s no excuse for driving without valid car insurance – it’s illegal. Even if the vehicle itself is insured, you can still be penalised if you’re not correctly insured to drive it.

Can I drive someone else’s car without insurance?

It’s illegal to drive without insurance… All things considered, it’s best not to jump into a friend’s car and assume you can legally drive it, even with their permission.

Is it compulsory to get car insurance in India?

In India, and all over the world, getting your car insured is a compulsory by law, not an option. The Motor Vehicle Act of 1988 makes it mandatory for all vehicle to be covered under an appropriate insurance policy before they can ply on the road.

What are the benefits of car insurance in India?

It could pay for your hospitalisation – Some car insurance companies in India offer personal accident cover for the owner-driver along with the third-party liability insurance plan. This is a very useful insurance cover as it pays for minor or serious injuries that the car owner suffers in an accident.

Why third party car insurance is mandatory in India?

It can leave you and the others, involved in the accident, financially strained and distressed. Hence, the government of India made it mandatory for vehicle owners to buy at least a Third-Party Car Insurance. Why Car Insurance is Important?

Why is it necessary to buy car insurance?

When you buy a car, it is necessary that you buy car insurance as well. The Motor Vehicles Act, 1988, mandates this due to the following reasons: It reduces your liability – Buying third-party motor insurance is lawfully necessitated for all vehicle owners in India.