Friday 21 February 2020
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Car insurance- why it is mandatory in India

Car insurance- why it is mandatory in India

This is the 21st century and your vehicle somehow decides your class status and your economic state to the society. People judge other people by the kind of vehicle they use to travel. And cars are the best mode of transportation to maintain your status. No matter which model it is, if you own your personal car, people will be influenced by your personality. Apart from it, a car also ensures the comfort and security level of the passengers. If you have to go somewhere in the night with your family, you always feel unsure and insecure while you think to use your two-wheeler or any public transport but, if you travel by four-wheeler like a car, your journey is sorted in many ways. Cars are the best friends of families on road. But, every relationship needs nurturing and a car is a machine. It also needs timely service, repair, and various oil/machinery replacements. But, during such situation, we are quiet calculative of our expense and delay our car services that result in various other major unexpected expenses. And the worst happens in case of accidents. Accidents are always unwanted and so the expense that occurs because of an accident. Car insurance helps an individual to manage all seen or unseen expenses that a car owner faces. You can easily buy the best car insurance plan on line. With so many options car insurance renewal online has  also become easier.

Benefits of Car insurance plan –

  1. Car insurance plan offers you economic assistance during the accident of the insured vehicle. It even offers cashless garage service at various network garages.
  2. It offers coverage against any loss or damage that is caused to the insured vehicle.
  3. Car insurance is very beneficial for the coverage against financial liabilities caused by the injury or death that is caused to the third party or any damage caused to the third party.

Two Types of Car Insurance –

  1. Third party Liability Insurance – This is a mandatory insurance plan in India and that is why it is offered by almost all companies. It is the cheapest insurance cover. It offers cover against any loss or damage that is caused to the third person liability and also covers any loss or damage that is caused to the third party property.
  2. Comprehensive Car Insurance – This offers the wide range of cover to an individual and the insured car. It not only offer third party liability cover but also offer the personal accident cover to the owner-driver of the vehicle. It also covers car against man made disasters like riots, theft and natural calamities like earthquake and cyclone. The premium amount for the same is more than the Third party Liability insurance as it offers end to end coverage to the policyholder under one plan only.

There are various add-on covers that can be purchased from the insurance companies at a nominal cost called premium amount. Some add-on plans are as follows –

  1. Zero depreciation cover
  2. Return to invoice cover
  3. No Claim Bonus (NCB)
  4. Personal accident for fellow passengers
  5. Engine protect cover

Add-on covers make the insurance plan much better as they enhance the field of protection and one can enjoy a wide range of coverage at a minimal cost.

Exclusions of Car insurance policy –

There are various features which are not covered under the motor insurance policy, such as –

  1. Any loss or damage to the car engine as a result of oil breakage is not covered.
  2. Loss or damage caused due to driver carrying invalid driving license or under influence of any un-prescribed legal drug, alcohol or other in the toxic element is also not covered.

Benefit, features, and exclusions differ from one insurance company to another so should read all aspects properly before buying any plan. To get the best plan, you must take help of an online insurance web aggregator such as It will help you in choosing the right plan according to your needs. With the same, you can buy car insurance plan within a few minutes.