Shortcomings of Not Owning a Proper Car Insurance Policy in India

If you have a car, you need to understand the fact that a proper vehicle insurance policy not only helps to keep the legal complications aside but also secures the vehicle against unexpected accidents. It is compulsory for every car owner in India to have at least a third party car insurance plan according to the Motor Vehicle Act in India. It provides financial protections and permits you to drive without any worry. But before purchasing any motor insurance policy, you need to compare car insurance online with other car insurance companies. So buying car insurance in India would be beneficial for all the car owners; in the same way not getting an effective policy one may face difficulties. Here, we will discuss some shortcomings of not having the right vehicle insurance plan. You can have a look at this write-up for better clarification.

Legal Responsibility

If you drive without a vehicle insurance policy, in the case of an accident, you will have to waste a lot of time in fixing the legal issues and pay a heavy fine to get rid of the liabilities. In many accidental cases, where the third party person has faced serious injuries, death or permanent disability, you might have to compensate for the medical expenses. But if you have a car insurance policy, you don’t need to pay for anything.

Financial Responsibility

As the comprehensive auto insurance policy provides you the security against man-made and natural calamities, so if you do not have the car insurance policies online, the cost of repair or damages has to be borne by you. This situation can demolish your financial status.

Heavy Penalties

As per the motor vehicle act 1988, third-party motor insurance plan is obligatory for your vehicles - be it commercial or personal. Without third-party insurance coverage, driving in India is illegal. If you are caught up without insurance, enforcement agencies penalize you heavily and it can impose fines up to Rs 1000 or imprisonment up to 3 months.

Loss of No Claim Bonus

If you do not renew your motor insurance policy and if it gets expired, besides the penalties and fines, you also lose the No Claim Bonus which you gathered in your existing policy. Your car insurance policy allows you a discount on premiums if there is no claim in any current year. This discount increases every year and saves your money for premium. But, if you let your car insurance policy lapse, you will lose the accumulated NCB and end up with paying a higher premium when the policy will be renewed.
Hence, it can be said that it is important to have car insurance online to stay safe and secure. Consider car insurance online plan by comparing with other car insurance companies. When injuring or loss is done and you can be in charge of the situation, then buying a car insurance plan in India will be a wise decision. By which you can deal with those situations effectively.