Driving a car is still considered a status symbol in India. Owning a car ensures mobility irrespective of time and location. However, there is another side to owning a car in India, as well. There is a lack of law-abiding citizens when it comes to traffic rules. Also, many roads in India are not in perfect condition and potholes are common in almost every city across the country.
According to a recent report published by the Ministry of Road Transport and Highways, India reported 467,044 road accidents in 2018. The number has unfortunately increased by 0.5% in comparison to 2017. India accounts for 6% of the world’s total road traffic accidents. Many publications have cited inadequate training and the inability to enforce the law in the country as two main reasons for increasing road accidents.
As per the law, it is mandatory to have a third-party insurance policy if you legally want to drive a car on Indian roads. A third-party insurance policy ensures that the third person involved in the accident gets compensation for the damage to the vehicle. However, it does not provide a cover for your car. Thus, while choosing the policy, you should prefer a comprehensive car insurance policy. Apart from the fact that it is mandated by law to have car insurance, there are several other factors too. Here is a list of 5 reasons why you must buy a car insurance policy.
- It reduces the chances of financial loss
Though all are cars are not as expensive as luxury cars, their repair and maintenance cost a lot. You might be very careful while driving your car on an Indian road; sadly, you cannot say the same for the other drivers. There is always a chance that your vehicle may get damaged because of someone else’s fault. Here is a list of some of the most common reasons for accidents in India where you might face damage because of someone else:
- Someone might be jaywalking on the road, and you have to take a sudden turn to save him and crash in a divider or something else
- A car can collide with your vehicle because the driver was busy on the phone or he was changing the music
- A cricket ball may come flying smashing the windshield of your car
- Your car may become a victim of riot or rogue protestors breaking vehicles on the road
These are just the tip of the iceberg. Keeping these factors in mind, you should choose the insurance policy wisely.
- Lesser financial liability
As mentioned above, it is mandatory to buy a Third-Party Car Insurance to drive a car on Indian roads legally. Such a policy covers the cost of damage to another person’s property or injuries to the driver or pedestrian in case you are the cause of the damages. The insurance company will pay for the treatment of the injured and also for the repair work required for another person’s property or vehicle. A car insurance policy will thus save you from the legal consequences associated with a road accident.
- Your insurance will pay the hospital bills
Because of car safety features, nowadays, many drivers suffer minimal injuries if involved in an accident. However, if it is a significant accident, the driver or the riders may suffer serious injuries such as fractures that require immediate medical attention and hospitalization. Having motor insurance can save financial liability in these cases, and the insurance company will pay for the admission and treatment costs. Please note that with some policies, the additional accidental cover comes only if you have bought an add-on for the same. Please check with the insurance company for the same.
- It is cheaper when you buy online
Buying an insurance policy requires paperwork. Also, an insurance agent will work as a middle man who may influence your decision-making process. On the other hand, if you buy or renew car insurance online, you will end up paying a lesser premium amount as there will be no middleman or agent. You will be able to check and compare insurance plans and make a fair decision without anyone’s interference. By opting for online purchase or renewal, you will reduce the burden of paperwork, as well. The online process takes only a few minutes.
- Financial support for the family in case of demise
In the worst-case scenario, an accident may lead to your demise. If you are the only bread-earning member of the family, it will ruin the financial situation and make it hard to live a sustainable daily life. Car insurance can help in paying for the family’s expenses in such cases. Please check with the insurance company to know if your insurance policy provides such cover otherwise gets an add-on for the same.
Car insurance is mandatory by law. Also, to save yourself from financial losses, you should have a comprehensive car insurance plan. There are countless benefits to a car insurance policy, and you should not avoid it at any cost.
Ref link for road accident stats: https://morth.nic.in/sites/default/files/Road_Accidednt.pdf