Benefits of Having Car Insurance in India

Benefits of Having Car Insurance in India

According to the motor act, 1988 Car insurance is mandatory in India. Driving without valid car insurance is illegal in India. In the event of death or injury to third parties or damage to the car, car insurance offers compensation up to Rs 1 lakh as per the chosen insurance policy. This type of car insurance is known as liability insurance and protects not only you but also other people or family members who can drive a car. There are several car insurance companies but it is advised to buy insurance from trusted ones only. Car insurance companies like New India Assurance, IFFCO Tokio, Bajaj Allianz, HDFC ERGO are the best ones.

Car insurance protects your car from man-made or natural disasters such as terrorist attacks, thefts, riots, earthquakes, cyclones, hurricanes, and against claims/damages caused by third parties. Sometimes car insurance can be confusing and difficult to understand but good car insurance companies are making it easier these days. There are some guidelines that car buyers should follow when choosing a policy. Car insurance companies can be good friends in times of crisis. It covers losses that occurred as a result of an accident and therefore does not allow you to pay a high sum out of your own pocket.

  1. Third-party liability insurance

The comprehensive insurance plan understands the importance of car insurance includes injury or property damage caused to third parties by the insured car.

  1. Individual accident insurance

Recently, this element of car insurance policies has been changed and coverage has been increased by 2 lakh and 15 thousand rupees. In the event of an accident with an insured car, the insurance company pays the medical treatment costs up to Rs 15,000 under the policy.

  1. Car accident

A car accident can have catastrophic consequences mentally, physically, and financially. Unlike third-party liability insurance, the entire plan also covers damage to your car. If the car is damaged in an accident, the insurance company covers the repair costs of the insured vehicle.

  1. Damage caused by a fire

The full plan covers damage caused by fire to the car. Fires caused by spontaneous ignition, explosion, lightning, etc usually covered by this plan.

  1. Car theft

Imagine parking your car in a mall parking lot and can’t find it when you leave the mall! It would be catastrophic, wouldn’t it? The complete plan includes car theft. If a car is stolen after completing the complaint process, you will receive a declared vehicle value (insured).

  1. Disasters

Cities are more exposed to flooding than before. Whether it is natural disasters such as floods or man-made disasters such as riots, car damage will be covered if you purchase a full insurance policy.

  1. Accessories

You can also take out additional insurance with a comprehensive plan. Please note that these policies cannot be purchased independently or with third-party liability insurance. The supplements are designed to cover insurance exemptions and slightly enhance the importance of car insurance. Here is a list of the most benefits:

–              No depreciation

–              Emergency help

–              Go back to the invoice

–              Car protection

–              Passenger deck

Therefore, these points can resolve any doubts about the importance of car insurance in India.

Last words

Car insurance is mandatory when purchasing new vehicles, whether purchased for commercial or private use under the 1988 Indian Motor Vehicle Act. Car Insurance is therefore important. It also covers damage caused by causes other than an accident, such as a fire, a theft, etc.

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