Why car Insurance is mandatory in India?

Indian roads are quite unpredictable and uncertain. There is no surety on the road that what will happen in just next moment. In India, road accidents are very common. No matter if you are an aware driver and caution about all perks on road and follow all traffic rules, you cannot take guarantee of the other drivers on road. A minor carelessness can result in a lifetime guilt and breakage beyond repair. Even a minor accident can cause the hole in your pocket because of the expensive part repair part of the car. It is an unavoidable expense as you have to repair your car mandatory or else have to suffer in public transport, as it is quite inappropriate to not use your car and leave it unrepaired forever. It is the dream of every person to own a car. But, this dream needs to be secured with suitable car insurance. There are many car insurances available in the insurance Market. Car insurance is an insurance policy that takes care of various expenses that occurs during unfortunate events like accident, theft and other mishaps as per the coverage of insurance plan.

Car Insurance Coverage –

Car Insurance is the best possible available way in which you can save your hard earned money with minimum investment called the premium amount. Premium amount is a certain amount that an insurance holder has to pay to the insurance company.  In India, it is mandatory for every vehicle owner to be covered under any active insurance policy as per Insurance Regulatory and Development Authority (IRDA). Car insurance coverage differ from product to product.

  1. Property damage liability – Car insurance covers property damage or loss that is caused to the property of third parties for example car of someone damaged during an accident by insured car.
  2. Medical payments – Depends on policy, insurance policy offers medical expense cover to the owner and the co-passenger.
  3. Bodily injury liability – Car insurance also cover injury claim of injured people during the accident of an insured car.

Types of Car insurance –

Broadly car insurance policy can be divided into two types

  1. Third party Car Insurance Policy- This policy offer security cover to the third party injury or death during an accident. It also offers cover for damage or loss of the third person. The third party is neither insurer nor the insured; it is the pedestrians, fare-paying passengers like in public transports auto, taxi or non-fare paying passengers like who are traveling free on the vehicle. Premium amount of this plan is affordable.
  2. Comprehensive Car Insurance policy – This offer a; round protection during an accident. This plan offers security cover to the owner and another passenger during an accident. It also covers the vehicle from damage caused due to any man-made calamities like theft, Bulgary, terrorist attack or damage caused due to travel by road, air or inland-waterway. This also offers security cover against natural disasters like flood, typhoon or earthquake etc. the premium amount of this plan is higher than another plan like third-party car insurance policy due to wide coverage. To choose the best out of all available options, take help of PolicyX.

Add-on cover

One can add various additional benefits to car policy as per requirement for unforeseen events. There is various add-on cover and some of them are –

  1. Accidental cover – This cove the owner and the driver of the car during an accident. IN case of death a lump sum amount is offered.
  2. Engine Cover – This helps you to bear engine repair or rseplacement during policy tenure.
  3. Road assistance – This add-on cover offer, towing and garage assistance in case of car breakdown on road.

The car makes commuting from one place to another quite easy and with the best car insurance plan you can enable the life and security of your vehicle to the next level. Car insurance not only helps you in the hour of need like breakdowns and accidents but it also lends you a helping hand during maintenance your vehicle with various add-on plans. Compare and buy a car insurance plan as per requirement, it is totally worth your little investment for maximum return. Insurance policy terms and conditions should be read carefully.