As always, welcome to this blog of yours. Friends, in the previous post, we have known, how many types of auto insurance are there? Today we will know, complete explanation, why motor insurance is necessary. So let's know.
Even if you drive very efficiently, even if you don't need to take a vehicle on congested roads, getting vehicle insurance is always a profitable deal. Taking auto insurance saves you from many problems.
Why is motor insurance necessary
1. For damage caused to any other person, vehicle, or property
As per the Motor Vehicle Act applicable in India, it is mandatory for every vehicle to take third-party liability insurance.
In the event of an accident, the damage caused by your vehicle to another person (third party) is covered through third-party insurance.
This damage can result in permanent injury or even death. Damage caused to another person's property is also paid for under the same third-party liability insurance.
Even under normal circumstances, if you do not have third-party insurance for your vehicle, you can be fined up to Rs 2000 or jailed for 3 months if caught. Even both sentences can be given together.
2. For damage caused to own vehicle
In the event of an accident, the cost of repairing damages to your vehicle is covered by First Party Motor Insurance.
This not only keeps you safe from sudden financial crises but also frees you from the hassle of repairs. Now many companies (especially car companies) have started providing roadside assistance as well.
3. Compensation for damage caused by natural calamity or such other event
Taking vehicle insurance also helps you in case of loss due to any natural calamity, or human calamity, etc.
What types of incidents are involved:Such contingencies include road accidents, car fires, natural calamities like earthquakes, landslides, floods, typhoon-hurricane, lightning, etc. Similarly, man-made disasters include fires, riots, terrorist attacks, explosions, theft, etc.
Read Also: What is Bike Insurance Price List 2022?
Looking at all these facts, it can be said that taking motor insurance is a wise deal in every way.
Keep that in mind when taking out vehicle insurance.
Often people opt for an insurance policy by looking at the amount of auto insurance premium (money paid). But by offering cheap plans, it may be giving you very little comfort in terms of coverage. A premium may sound expensive, but it also comes with zero-depreciation add-ons.
In fact, there are three things to keep in mind while choosing an insurance policy.
1. How is the creditworthiness of the insurance company in the market? (Variations on the speed of access and service)
2. What coverage is she giving you and how much? (for self and third parties also)
3. What is the quantum of premium to be paid on your behalf? (Don't charge too much by giving little facility)
Keeping all three facts in mind, you can choose the best option.
We are sure that you will like this information very much. Do share this blog with your friends for more such information. Thank you.