Insurance
•01 min read
Did you know around that India witnessed around 4.6 lakh road accidents in 2022* [Press Information Bureau of India]?
Accidents can happen anywhere, at any time, making it super important to have sufficient financial backup if such an unfortunate incident happens. This can be ensured with the help of motor insurance for your vehicle.
Motor acts as a safety net against financial and legal obligations arising from unforeseen events like accidents, theft, damage, natural disasters, etc.
But is motor insurance mandatory? Do you need it to drive your vehicle? Let’s have a look.
2. Third-party Plan
This plan covers third-party bodily injury and property damage. For example, if you get into an accident with another person and damage their vehicle, this plan will cover the same.
3. Own-damage Plan
This plan simply covers your vehicle.
Yes, third-party motor insurance is a mandatory legal requirement in India if you are a vehicle owner and want to drive it on the road, as per the Motor Vehicles Act of 1988. If you don’t possess a valid third-party policy, you will be liable to pay a fine.
Motor insurance is a contract between you and the insurer to shield you from financial losses in the event of an accident or other incident involving a vehicle you own. In exchange, you’re required to pay a premium. Motor insurance can be bought for private vehicles like cars, bikes, etc., and also for commercial vehicles like public buses, taxis, etc.
The coverage you receive under motor insurance depends on the type of plan you buy:
1. Comprehensive Plan
This plan covers you, your vehicle, and third-party liabilities (caused to their vehicle, body, or property). This gives you all-round coverage against anything that happens to your vehicle or to a third-party or their property.
