Significance Of Motor Insurance In India

Motor Insurance


The convenience of having a car at your disposal is no longer optional. You’ll have more freedom and less need to rely on public transport to travel when you have your car.

There are, however, risks associated with operating a motor vehicle in India. The probability of becoming involved in an accident increases by factors such as poor road conditions and a lack of driver discipline. In such a scenario, damage to your car may be possible, as are injuries, and even an unfortunate event.

There were an average of 413 fatalities per day in 2016, according to a report on road accidents issued by Transport Research, the Ministry of Road Transport and Highways[1]. Insurance coverage for your car or other vehicles could be a wise financial investment to safeguard against such misfortunes.

It is best to consider investing in a vehicle insurance policy to protect yourself from such incidents. To get an idea of how much the premium amount for your car would look like, you can use the online vehicle insurance calculator that most insurance companies provide these days. *

A comprehensive motor insurance policy offers a lot of benefits. The following are five significant advantages of such a plan.

  1. Offers coverage for damage to property: You cannot eliminate the risk of damage to your vehicle during an accident. The cost of repairs can indeed be an expensive affair and may burn a massive hole in your pocket. Purchasing a motor insurance policy prevents such out-of-pocket expenses, as your insurance provider may bear a substantial percentage of the cost of repairs.*
  2. Provides coverage for hospitalization costs: In case of severe bodily injuries or fractures, you may require treatment at a hospital. A motor insurance plan financially protects you against high medical costs. It covers all hospitalization expenses, thus, allowing you to focus on a speedy recovery instead of worrying about finance.*
  3. Reduces your liability: According to the Motor Vehicles Act, purchasing a third-party liability insurance policy in India is mandatory. This insurance policy reduces your liability in case you cause an accident. The insurance provider covers all damages caused to third-party property, or injuries caused to a third party. Besides, it protects you from legal repercussions if you have to defend yourself in court.*
  4. Compensates the family in case of an unfortunate event: Accidents may result in unfortunate events. The family may face financial difficulties in the event of the policyholder’s sudden passing away, especially if they were the family’s breadwinner. Motor vehicle insurance plans provide a lump sum compensation in case of an unfortunate fatality. The loved ones may use this amount to meet their financial obligations.*
  5. Offers coverage for natural and man-made calamities: A vehicle insurance plan also provides financial protection against natural calamities such as typhoons, floods, cyclones, hailstorms, and hurricanes, among many others. It also offers coverage against man-made activities such as fire, strikes and terrorism.*

The points mentioned above show that a vehicle insurance plan is significant for every vehicle owner. You should evaluate different insurance providers, compare their plan features, inclusions and exclusions vs the price and decide smartly when you are doing your vehicle insurance renewal. *

Remember to correctly fill in all your personal details as well as vehicle details while making the vehicle insurance online payment. *

* Standard T&C Apply

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. ‘

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