Car Insurance: Here’s the reason it is Mandatory in India

Irrespective of regardless of whether we are driving out and about, one significant archive that we obligatorily convey & intermittently reestablish is engine protection for our cars.


It doesn’t make any difference assuming we are conveying outsider vehicle protection or a far reaching one, vehicle protection is obligatory to convey with your vehicle.

So, for what reason is vehicle protection required in India?

This article won’t just assist you with figuring out the purposes for this administration’s command yet additionally the various sorts of vehicle protection that are accessible in the market & how one can easily purchase vehicle protection online in India.

Car Insurance – The required driving archive in India

With higher dispensable salaries, surplus accessibility of vehicles & bother free purchasing strategies, the honor of claiming & driving a vehicle is presently being capable by a great many Indians.


However, driving isn’t simply an honor, it is additionally an obligation. Tragically, regardless of stringent traffic rules, government drives & regulations, for example, the Motor Vehicle Amendment Act, 2019, street mishaps keep on being a significant formative issue in India. According to the Road Accident Report by the Transport Research Wing of the Ministry of Road, Transport & Highways, 449,002 street mishaps occurred in India.

Owing to these difficulties, in India, according to the Motor Vehicles Act, passed in 1939 & corrected in 1988, all vehicles working out in the open space in India should compulsorily have an engine vehicle protection cover. Kindly note that having a complete cover for one’s vehicle isn’t necessary (yet suggested), nonetheless, conveying basically an outsider vehicle insurance is obligatory according to this act.

While the Motor Vehicles Act is the main motivation to hold vehicle protection while driving in India, it isn’t the main explanation. Understanding are 4 must-know reasons that make vehicle protection compulsory in India.


1. Cover for Damaged Vehicles to Keep Pocket-Burning Car Repair Expenses at Bay

Cars are not only costly to purchase, they are additionally costly to claim. A basic gouge or a windshield break due to a cricket ball can without much of a stretch expense you thousands.

When it comes to driving out and about, have you at any point considered what might occur assuming you slammed into a left vehicle while safeguarding a stray canine? It is very sure that you would be expected to take responsibility for the harm yet assuming the harmed vehicle’s proprietor hosts somewhere around third-gathering vehicle protection, the maintenance harms would be paid by their insurance agency safeguarding you from the risk & bad habit versa.

Car protection will safeguard you against the monetary gamble of questionable circumstances emerging while you drive out and about or in any event, when your vehicle is left prompting impromptu liabilities for you.

2. Cover for Medical Treatment in Case of Accident or Injury

In circumstances where an individual has been harmed because of an on-street mishap, hospitalization for the concerned individual won’t just require what is happening yet additionally costly clinical bills. 



When you would host a third-gathering cover, the insurance agency will pay for the treatment of the harmed individual guaranteeing that they are seeking the total treatment expected for the uncalled mishap saving you from the monetary commitment as the driver/owner.

3. Giving a Financial Safety Cover in Case of a Disability

While vehicle protection ensures that the insurance agency pays for the clinical treatment of an individual on account of a mishap or injury, notwithstanding, in a sad occurrence where the harmed has become forever debilitated, the insurance agency will give money related remuneration to the proprietor/driver.

4. Monetary pay to the family if there should be an occurrence of an awful Demise

While setbacks brought about by street mishaps are normal, now and again, they frequently lead to an individual’s destruction. Mishap related passings represented 151,113 in India in 2019 according to the Ministry of Road, Transport & Highways.


Car protection additionally accommodates a money related cover in such circumstances, where the proprietor/driver, who was the sole bread worker of the family, died in a deadly street mishap as their demise wouldn’t just get significant sorrow however extreme monetary stress for the family.

Such financial pay by the insurance agency in these occurrences guarantees that the family or the closest kinfolk of the departed might not just meet their day to day needs at any point yet in addition support themselves in the midst of insecurity.

Types of Car Insurance Policies in India

Now that you have perceived the reason why having vehicle insurance for your vehicle is obligatory in India, coming up next is an essential comprehension of the 3 distinct kinds of vehicle protection contracts accessible in India so you can analyze & purchase the most fitting one for yourself. 

Third-Party Car Insurance Policy

  • Cheapest & most reasonable sort of vehicle protection accessible in the market
  • Compensation just for outsider liabilities including outsider vehicle, individual and property
  • Provides inclusion for wounds/destruction as well as harm of vehicle of the third party
  • More suitable for old vehicles

Comprehensive Car Insurance Policy

  • This is the chief type of protection cover you can purchase for your vehicle in India
  • Provides complete assurance for your vehicle including inclusion for burglary, crash, fire, etc.
  • Includes unintentional harms caused to the third party
  • Also covers harms caused because of regular and man-made disasters
  • You can likewise upgrade your protection cover by paying for additional

Add-on Insurance Cover for Vehicles

This kind of protection functions as an extra cover for your vehicle to get the most ideal cover you would require. Includes:

  • Zero-deterioration cover
  • Roadside Assistance for your vehicle
  • Engine substitution cover
  • NCB Protection Cover
  • Geographical Extension Cover
  • Consumables Protection Cover


That’s it, Ladies  & Gentleman. We took care of our business. Presently it’s your obligation to ensure that you convey substantial protection for your vehicle all through your ownership.

However, on the off chance that you have decided however are confounded about how you can purchase vehicle protection for your vehicle, Policybazaar Insurance Brokers Private Limited gives a far reaching rundown of Car Insurance Plans. You can think about different outsider and thorough vehicle insurance contracts & find the best engine insurance for your vehicle.

With vehicle protection being with such ease available nowadays, you can pick & purchase from the best & ensure that your vehicle, outsiders, as well as you and your family are monetarily secure against dubious circumstances on the road.