India is the second-largest nation in the world by population and is home to one of the fastest-growing economies. The Indian transport sector is also fast growing, with many motor vehicles added to the roads yearly. This growing number of motor vehicles on the road, coupled with several traffic complications, leads to many car accidents.
In 1988, the Motor Vehicle Act made it mandatory for every motor vehicle to at least have third-party vehicle insurance to run on Indian roads legally. This article will point out certain benefits of having a car insurance policy.
Financial liability coverage - In case of an accident or car theft, a comprehensive car insurance policy will provide financial assistance. Similarly, a good car insurance policy will supplement the repair and maintenance charges of the car.
Medical coverage - A comprehensive car insurance policy will not only cover the damage costs to the car, but in the case of severe injuries to the driver, the policy will also cover the hospitalisation costs.
No Claim Bonus - Car insurance policies have several add-on features. One such feature is no claim bonus. It is the bonus amount that the insurance company offers you if you have not made any claims during the policy period. A no-claim bonus is a significant amount and helps you save money at the time of policy renewal.
Personal Accident Cover - Accidents can happen anytime, leading to disabilities and death. With the personal accident cover, the car insurance policy covers most of the medical bills, and in case of death, it pays a lump sum amount to the deceased's family.
Easy Repairs - Most insurance companies offer network garage service in case of a car breakdown or repair. It is a hassle-free way to repair your car without spending any money.
Legality - As mentioned earlier, driving a car without a car insurance policy is illegal and can land you in trouble with the law.
The above points demonstrate that though a car insurance policy requires paying a monthly premium, the advantages of having one far outweigh the cost car owners bear. However, you can check car insurance policies carefully to get the ideal coverage for your vehicle.
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