Understand the importance of Car Insurance

Posted by Radhika Adsule on August 27th, 2021

When you buy your first car, you are naturally excited. You devote a massive amount of effort and money to finding the best four-wheeler accessories. You put in efforts towards the same, whether it is a cutting-edge audio system, LCD navigation panels, or beautiful seat covers. However, buying accessories does get postponed. You must buy Car Insurance coverage as soon as you buy your vehicle.

Importance

According to the Motor Vehicles Act, anyone who owns a vehicle is aware that a Third-Party Insurance Policy is mandatory. Your Car Policy saves you from unpleasant situations, including accidental death or injury, damage to a third-party vehicle or property, and so on. If you discover driving without insurance, you face a fine. If you drive without insurance, here is what happens:

License gets suspended

If you fail to produce your insurance paperwork for inspection, road traffic officials have the authority to suspend your driver\'s license. Authorities need you to submit your driving license or possibly cancel it, depending on the seriousness of the incident.

Vehicle registration gets revoked

Your registration paperwork potentially gets revoked by traffic officials. It means you cannot drive the vehicle until the suspension lifts.

Legal liabilities increase

You also get into legal difficulties if you drive without Four-Wheeler Insurance. Driving without one results in a fine of up to Rs. 10,000 in India, depending on the severity of the occurrence. Besides the monetary penalties, you could face a three-month prison sentence, and the occurrence gets permanently recorded on your record.

Financial woes increase

If you are found driving without 4-Wheeler Policy, you face significant financial penalties. The insurer refuses to reimburse, or you might need to pay exorbitant insurance premiums for a simple policy. Suppose you or a third-party get involved in an accident. You become responsible for any accident-related expenses, including third-party damages, property damage, hospitalisation and treatment costs, and so on. You also need to pay the legal fees.

Forfeit your No Claims Bonus

If you forget to do a Car Insurance renewal and are caught driving without, you lose your No Claims Bonus. This reward lowers your premiums for every claim-free year. This extends up to five years, and the discount amounts to 50%.

Plying on Indian roads without Car Insurance is as severe as driving without a license. If you get questioned by a traffic law enforcement officer, you must show any paperwork relevant to your car.

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Radhika Adsule

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Radhika Adsule
Joined: June 3rd, 2021
Articles Posted: 7

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