Why Having Car Insurance Is Important in India?

Insurance policies are generally designed to provide monetary support to the person whoever purchases the policy. Similarly, car insurance policy offers protection against financial damage to the policyholder. Without a car insurance policy, you as the owner of a vehicle will have to put up with the outcome on your own.

Such circumstances could bring an enormous financial loss. Be it a driver of a car, a property owner or even a pedestrian, the law mandates each and every person to be compensated for the loss rightly. This is where car insurance policy comes into the story.

There are basically two types of car insurance policies – third-party liability only car insurance and comprehensive car insurance. As per the Motor Vehicles Act, 1988, third party car insurance is mandatory for a vehicle owner to become eligible to drive it on road.

Inclusions of Third-party Car Insurance

• Under third party car insurance plan, the vehicle owner or driver is covered against the medical expenses you suffer an injury while driving. The maximum limit of this medical treatment coverage used to be Rs. 7.5 lakh but, recently it has been increased to Rs. 15 lakh.
• Covers injuries caused to the third party
• Car insurance offers unlimited coverage against medical treatment of any third party
• Also offers coverage against any legal action taken against you in the event of an accident
• Death compensation is paid to the family of the deceased third-party
• The compensation is calculated on the basis of the income and age of the deceased.
• Compensates against the damage caused to third party property
• A personal accident cover is available with car insurance for the driver or policyholder
• Legal liabilities arising in case of an accident where you are at fault

Inclusions of Comprehensive Car Insurance

• The entire coverage offered under a third party liability only policy is provided under a comprehensive plan
• Covers any loss or damage caused to the insured car in case of an accident i.e. own damage
• Protection against damage due to various manmade calamities such as vandalism, sabotage, riot etc and damage due to various natural calamities like earthquake, storm, flood, landslide etc.
• A theft cover with the policy pays an amount approximately equivalent to the vehicle’s current market value
• You can extend your coverage by purchasing effective Add-ons along with the comprehensive policy.
• Damage due to fire is covered under the car insurance policy

The Importance of Car Insurance Renewal

Once you buy car insurance you can rest assured that you will be financially protected for the specific period of your policy. However, after the policy expires, you will no longer be protected. Hence, you can’t file a claim against your car insurance policy.

To avoid such circumstance you must make sure that your vehicle insurance policy is renewed in a timely manner, in other words, before your motor insurance policy is about to expire. At GIBL.IN you can instantly compare a number of car insurance policies online, and avail the best car insurance policy as per your requirement and save big on the car insurance renewal premium too.