Here's What Can Happen If You Don't Have Third-Party Car Insurance
Purchasing car insurance entails making a modest financial investment to obtain financial protection with several advantages. Refusing to buy car insurance will not only put you in legal hot water but also put you in dire straits financially.
Third-Party Car Insurance: What Is It?
Third-party liability and comprehensive car insurance are the main categories differing in cost and coverage. Third-party insurance covers property damage and injuries to others, encompassing expenses for property damage, fatalities, and medical treatment for third parties. *
What Makes Third-Party Car Insurance Required?
While own damage insurance is optional, Indian law mandates at least third-party car insurance under the Motor Vehicles Act of 1988. This ensures fair compensation for third parties, regardless of the owner's financial stability, and aligns with legal responsibilities. Purchasing car insurance is a legal obligation to avoid liability for losses caused by an uninsured vehicle.
Three Repercussions Of Not Having A Current Car Insurance Policy
As was previously mentioned, purchasing at least a Third-party car insurance policy is required by law in India. Therefore, breaking the law above carries penalties. The following are the repercussions of not having a current car insurance policy:
Penalties For Breaking The Rules: A car insurance policy is one of the four essential documents that one must always have with them when driving. The additional documents include the vehicle's registration certificate, driver's licence, and Pollution Under Control (PUC) certificate. If one does not have valid insurance, they may be fined Rs. 1000 or face a three-month jail sentence. Furthermore, if a legitimate insurance policy is not in effect, the vehicle's registration may be cancelled.
Financial Risks: The owner of an uninsured vehicle bears several financial losses and risks. The car owner will be responsible for paying the full compensation if the driver causes any injury or loss to a third party in an accident. The compensation amount is determined by considering a number of variables unique to the concerned third party. Therefore, in certain situations, the owner would be responsible for paying a hefty compensation fee if they lacked insurance. If your policy is still in effect, the insurer will cover this expense regardless of the settlement amount.
Legal Risks: Besides covering the loss incurred by the third party, an insurer will handle any legal obligations that may emerge from an accident. The burden of finding a lawyer and managing the legal procedures does not fall on the owner. All legal hazards are covered by third-party car insurance.
Ways To Purchase Car Insurance Online?
For both comprehensive and third-party coverage, the easiest way to buy car insurance is online. Visit the insurer's website to provide vehicle and personal details for a quote. For comprehensive policies, pay, select add-ons, determine IDV, and receive the policy document within minutes via email. Third-party insurance can be quickly purchased by filling out information and paying. One can also easily do the process of car insurance renewal online. Insuring your car with a small investment is crucial for mitigating potential consequences. You can use a car insurance calculator to estimate the costs of premiums to be paid. Claims are subject to terms and conditions set forth under the motor insurance policy.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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