Is Car Insurance Mandatory In India?

On an average, it is estimated that, about 55 car accidents happen in our country every hour. With these shocking statistics, let’s understand the importance of car insurance. A Four-wheeler Insurance policy will protect your vehicle against third-party liabilities and own damages.

Is car insurance a must in India?

In our country, with an increased number of cars, there is an increase in traffic. Due to this factor, the likelihood of accidents has also gone up.

 

These accidents can sometimes be very bad for an individual, their family and other people associated with it. It can leave you and others involved in the accident financially stressed and in trouble. Furthermore, the government of India made it compulsory for car owners to purchase Third-Party insurance.

 

Why it's essential to have four-wheeler insurance

Car insurance is meant to safeguard us from things we can't plan and expenses we didn't expect. Anyone's car can break down, meet with an accident or be stolen, leaving them stranded on the road. In any of these situations, having four-wheeler insurance will save you a lot of money.

 

Most of the time, we see some drivers go too fast in their cars and cause damage that no one could have imagined. This can lead to dangerous consequences. When we see serious injuries that can't be fixed, we remember how important it is to have car insurance.

 

Advantages of having car insurance

Our country has seen a lot of car accidents in the past few years, so it makes sense to have third-party insurance. Taking the situation into account, an individual can explore the advantages of four-wheeler insurance, which include:

• The lawsuits and legal fees, if they are responsible for the damage.
• Claims for fixing things that were damaged in an accident.
• Damages caused by natural and man-made disasters like terrorism, earthquakes, etc.
• Compensation for the survivors.

 

What are all covered in your car insurance?

Own Damage cover

If the car owner doesn't have a policy that covers their car’s own damages, they won't be able to make any claims for it. Depending on the type of policy purchased, the coverage would follow. So, it is advised to purchase a comprehensive four-wheeler insurance policy. A car can be damaged in ways other than accidents, such as natural disasters. India has seen and is prone to a lot of earthquakes, storms and floods, all of which can cause a lot of damage.

 

To reduce the large amount of Third-Party Liability

The likelihood of a collision and damage has gone up because of the increase in traffic. You might be able to get over your own losses, but what happens if a third party can't handle the huge expenses associated with a loss?

 

It is an individual’s responsibility to cover the damage your car causes to a third-party. It makes no difference if they can pay for it or not. The third-party could get hurt or affected by property damages during an accident. Car insurance will be useful in this situation to protect them from unwarranted liabilities.

 

To give money to the deceased person’s family

Four-wheeler insurance is required by law to help the family of the insured who dies in a car accident.

 

If you don't have Third-Party insurance, what will happen?

Let's say you obey the rules of the road, but you hit a car that was parked on the roadside. Your car will be responsible for third-party property damage.

 

This might be your first time dealing with an accident that can make you financially liable for the damages. You will be responsible for paying for the losses. But if you don't have car insurance, following things can happen:

 

• Your driving license will be suspended.
• Punishment and Legal proceedings.
• Inadequate financial backing in case of damage and accident.
• Suspending car's registration.
• Heavy fine for not having insurance.

 

How Can I Get Shriram Car Insurance in India?

There are several ways to make sure your car is covered in case of some unexpected events. Online and offline are two important ways. Here are the steps to getting Shriram Car Insurance:

 

Online

It's now more convenient than ever to get four-wheeler insurance online. Online car insurance is available from many general insurance companies in India, including Shriram General Insurance.

 

Just go to our Shriram General Insurance website, choose the type of policy you want, fill out the form and pay. Your car will be covered by insurance in a short span of time. You can purchase four-wheeler insurance in India online from any location and at any time.

 

Offline

You can get the policy from your car dealer, an insurance agent or the insurance company itself. You need to show the required documents, pay for the policy and then buy it. When you buy insurance offline, you have to be there in person, which is a bit of an inconvenience.

 

Take Away

If you know what you want to do but don't know how to get car insurance, you can compare different third-party and comprehensive/full coverage four-wheeler insurance plans to find the best one for your car. Since there are so many options for four-wheeler insurance these days, you can pick the most suitable one and make sure that you are safe and financially secure in case of an accident.

 

Key Highlights

• The government of India made it compulsory for car owners to purchase Third-Party Insurance.
• If the car owner doesn't have a policy that covers their own damage to the car, they won't be able to make any claims for it.
• It's now more convenient than ever to get car insurance online. Online four-wheeler insurance is available from many general insurance companies in India, including Shriram General Insurance.

 

FAQ’s

1. What happens if you don't have Third -Party Insurance in India?

The authorities may penalise you if you operate a four-wheeler without a Third-Party Insurance Policy. According to the revised Motor Vehicles Act, 1988, the fine would be in the thousands. There is also a possibility of imprisonment.

 

2. What happens if you are at fault in an accident and don't have Third-Party Insurance?

Third-party insurance is required by law in India and if it's your fault, you have to pay for the other person's injuries and damages.

 

3. Is it required to have Third-Party Insurance for 3 years?

The new rule says that an individual must purchase a 3-year Third-Party(TP) insurance for a new car and 1-year TP insurance for people who already own cars.