Why Is Four-Wheeler Insurance A Necessity?

Insurance policy is a regulatory requirement when you buy a vehicle in India. It is natural to wonder why it is made a mandatory requirement. The “World Road Statistics” (WRS) 2018 and the Road Accident in India Report for 2019 states India has one of the highest road accidents across 199 countries in the world. With such an alarming statistic on road accidents, it has compelled the government to make it essential to have at some form of protection to cover for any unanticipated accidents. For that reason, all car owners are compulsorily required to purchase insurance.

A four wheeler insurance policy helps to compensate for any liabilities that may become payable in the event of an accident. These liabilities can occur due to injuries to third persons or damage to their property. For that reason, a third-party car insurance policy is the minimum requirement as per the law under Chapter 11 of the Motor Vehicles Act of 1988. 

A third-party car insurance is not the only type of plan that you can buy. Comprehensive policies are an alternative for those who wish to opt for higher coverage. Such extra protection offered by a comprehensive plan is in the form of coverage for any own damages. During an accident, it not only causes third-party injuries and damages but also damages to your vehicle too. With such comprehensive insurance cover, these repair costs can be reimbursed by your insurer. If you possess a valid copy of the insurance policy, the insurer compensates these costs of repairs and legal liabilities based on your insurance coverage. 

What are the advantages of purchasing a car insurance policy?

The following are some of the benefits of buying comprehensive four-wheeler insurance:

Scope of the policy: Based on the type of insurance plan selected, the insurer offers compensation for the damages. A third party car insurance policy with its limited scope only covers for legal liabilities whereas a comprehensive plan includes damage to your own vehicle. 

Renewal benefits: Ensuring you have active four-wheeler insurance, you can benefit from renewal benefits offered therein. These benefits are in the form of concession in your renewal premium in the form of a no-claim bonus. 

Peace of mind: With a car insurance policy serving as a financial backup for repair costs, you no longer need to worry to shell-out hard-earned savings for these repairs and damages. Moreover, comprehensive plans also include damages due to natural disasters and other man-made perils like theft to your car thereby ensuring a financial safeguard. 

Legal compliance: Apart from the above benefits, a car insurance policy also helps you avoid hefty fines that otherwise can put a dent in your bank account. It is essential to purchasing a car insurance policy, first to safeguard your vehicle and second to comply with the law. 

When you are looking for insurance cover, make sure to shortlist among the available plans. When you compare car insurance policies, it helps you select the best insurance policy based on your requirements. Keep in mind these tips and select a suitable car insurance cover today. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

About Robin Jackson