Why do we need insurance for our vehicle?

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Driving a vehicle is not a luxury but a big responsibility. Even many consider driving as a status symbol, especially in a country like India, where people believe in appearances. With increasing income slabs, owning a vehicle is no longer a big deal and people can easily afford bikes and cars. It not only reflects the status of the society but also increases mobility and hence saves time. Driving is also eliminating dependence on public transport.

It is true that driving has made our life comfortable but at the same time it is also pushing us towards dangerous life. As someone rightly said “speedways end in graveyards”. In the name of show off, people not only put their lives at risk but also injure others by over speeding their vehicles. It has become a common thing to see daily news of accidents and deaths in the newspapers. People are losing their lives in road accidents by breaking the traffic rules and putting the lives of others at risk by not following the ethics in driving. Moreover, high repair cost as well as spare parts cost squeezes your pocket which proves that having a good motor insurance policy is a must these days.

Motor insurance is mainly purchased for vehicles plying on the roads, with the primary objective of providing protection against any physical damage to the vehicle and the driver in case of an accident. There are several factors for which it is important to buy motor insurance:

Mandated by law: The foremost reason to buy motor insurance is that it is mandated by law. Third party insurance is mandatory as per the Motor Vehicle Act. Police has the right to check your vehicle documents like PUC, license and insurance policy at any point of time. If you are not able to provide the documents then there will be a problem. Hence, it is advisable to buy motor insurance before hitting the road.

Vehicle damage and loss: We all know that people have little understanding of driving and with the kind of traffic management we have in our country, hardly a day goes by when you don’t hit a vehicle without damaging it. The main reason for having motor insurance is that it covers the expenses incurred due to any loss or damage caused to your vehicle. So it is always good to play safe and get motor insurance before riding your bike or car on the roads.

Reduces Your Liability: Third Party Liability (TPL) motor insurance is mandatory in India, which protects you from the legal implications of an accident caused by you. TPL means that if you cause damage to another person and their property in an accident, the insurance will pay for their treatment and protect you from legal ramifications.

Hospitalization: Not every vehicle owner is lucky enough to suffer only a few cuts and bruises in an accident. Some accidents put you in a difficult situation and require you to be admitted to the hospital. In that case, your motor insurance company will pay for your hospital bills, instead of you having to bear the huge hospital and treatment expenses from your own pocket.

Compensates your family after your demise: Some accidents are so dire that it results in the death of the car owner, which is the most unfortunate outcome of a road accident. Once the bread earner of the policy holder dies, it becomes difficult for his family to meet their daily needs. Hence, a motor insurance policy helps the family to bear the expenses after any unfortunate incident.

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