Why is it critical to have a Motor Vehicle Insurance Policy?

Having a vehicle is a sign of stability in life and brings joy not just to the owner but also to their loved ones. But with this joy comes some responsibility. The responsibility to take care of the motor vehicle. This is where Motor Vehicle Insurance becomes important, especially if you drive to work every day for long distances.

Motor Vehicle insurance safeguards the owner against financial damages caused by unpredictable events such as accidents, natural catastrophes, and thefts. Damages to the insured vehicle, the third person or policyholder is compensated by the insurance company.

Significance of a Motor Vehicle Insurance Policy

It is critical for a driver to possess motor vehicle insurance. Motor insurance is legally required in almost all the countries in the world. In India, a third-party motor vehicle insurance policy is mandatory under the Motor Vehicles Act, 1988. Carrying quality insurance provides protection to the driver, the vehicle and the passengers.

According to the data produced by NCRB, the number of traffic accidents per lakh inhabitants in India has climbed by 84% since the 1970s. 4,37,396 traffic accidents were reported in India, in 2015. The numbers are astounding and call for judicious measures to be taken for you and your vehicle.

How Can A Motor Insurance Policy Help You?

Motor vehicle insurance provides covers on multiple levels:

• Covers damage to your vehicle

  In case of an accident, where the motor vehicle has been damaged, you can end up paying a hefty amount of money just for repairs if you don’t own motor vehicle insurance. Having insurance can come as an aid. In case of such accidents, a substantial part of the repair is covered by the insurance provider and you are protected to pay expenses out of your pocket.

• Covers You and Passengers

  In the occurrence of an accident, severe injuries can be caused to you and fellow passengers leading to huge medical expenses. With Motor Insurance Policy, the insurance providers cover the medical expenses for you, other passengers and also the third party involved.

• Covers third-party damages

  Even if no damage is caused to you or your vehicle, you would have to pay the repair expenses to the other party if you are involved in an accident. With comprehensive motor vehicle insurance, this can be avoided. If you are involved in an accident involving a third party, such as a pedestrian, another vehicle, or someone's property, this insurance will cover the repair costs and hospital expenses.

• Covers Legal Expenses

  It is common for victims in an accident to file a lawsuit against the other party. In such an event, motor vehicle insurance. Vehicle insurance coverage protects your bank account from the financial burden of these legal charges. Legal fees can quickly drain your cash. With the coverage, you can ensure that any significant expenditures spent as a consequence of a lawsuit filed against you, as a result of a traffic accident, are covered by our insurance policy.

A comprehensive motor insurance policy offers a plethora of benefits. Following are five major advantages of such a plan:

• Provides Coverage for Hospital Expenses

  Rash driving, unmanageable traffic and a little carelessness on somebody else’s part can land you in the hospital. Such a scenario is not just physically taxing on the driver but causes emotional distress among their loved ones. With motor vehicle insurance, you can protect yourself from exorbitant medical costs. It covers all hospitalisation expenses, allowing you to focus on recovering rather than stressing about money.

• Reduces Your Liability

  There are three primary types of vehicle insurances: Third-party insurance, own damage insurance and comprehensive insurance. Third-party insurance is mandatory for all vehicles in India. This type of insurance policy limits your financial liability in the event of an accident. Third-party property damage or third-party bodily injury is fully covered by this policy. However, going a step further and acquiring comprehensive motor insurance will not only cover the other party’s damages but provide coverage to you and your vehicle at the same time.

• Complete Coverage to your vehicle

  Unlike a third-party policy, comprehensive insurance compensates and covers the cost of your vehicle’s repair in case of an accident. If you get your vehicle repaired with a network garage mentioned in the policy, you can avail of cashless services where you have to pay no money out of your own pocket. Hence, it is always advisable to opt for comprehensive insurance when you check car insurance online or look for a bike insurance policy.

• Compensates the family after the death

  An accident can lead to the unfortunate death of the policyholder. This causes emotional as well as financial stress to the family. Our insurance policy providers understand this and provide a lump sum amount to the family of the deceased policyholder in such an event.

• Coverage against natural and man-made calamities

  Comprehensive motor insurance also provides financial protection against natural catastrophes such as floods, typhoons, cyclones, hail, and hurricanes, to name a few. It also safeguards against terrorism, fire, and strikes.

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Also Read: Reasons you should buy a long-term car insurance policy