Why do we need insurance for our car?
Driving is not a luxury but a big responsibility. Even many people consider driving as a status symbol especially in a country like India where people believe in showing off. With the rising income slab, owning a car is not a big deal these days and people can easily afford bikes and cars. It not only shows 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 pushing us towards a dangerous life. As someone rightly said "the speedway ends at the graveyard". In the name of show off, people overspeed their vehicles and not only endanger their lives but also harm others. Daily reports of accidents and deaths in newspapers are now a common thing. People are losing their lives in road accidents by violating the traffic rules and also endangering the lives of others by not following the driving ethics. Moreover, the cost of spare parts and high repair costs weigh on your pocket which proves that having a good motor insurance policy is essential these days.
Motor insurance is primarily purchased for road vehicles with the primary objective of protecting the vehicle and the driver against any bodily harm in the event of an accident. There are several factors that make it important to buy motor insurance:
Mandatory by law: The main reason to buy motor insurance is that it is required by law. Third party insurance is mandatory as per the Motor Vehicle Act. The police have the right to check your vehicle documents like PUC, license and insurance policy at any time. If you are unable to provide the documents, you will be in trouble. Therefore, it is advisable to buy motor insurance before hitting the road.
Car damage and loss: We all know that people are not smart enough to drive and with the kind of traffic management we have in our country, hardly a day goes by without you getting hit by a car. The main reason for having motor insurance is that it covers the expenses incurred due to any loss or damage to your vehicle. So it is always good to be on the safe side and get motor insurance before driving 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 damage another person and their property in an accident, the insurance will pay for their treatment and protect you from legal liabilities.
Hospitalization: Not every car owner is lucky enough to get only a few cuts and bruises in an accident. Some accidents put you in a difficult situation and require you to be hospitalized. In this situation, your motor insurance company will pay your hospital bills, rather than incurring more hospital and treatment expenses out of your own pocket.
Pays your family after your death: Some accidents are so horrific that they result in the death of the car owner, which is the most unfortunate outcome of a road accident. After the breadwinner policyholder passes away, it becomes difficult for his family to meet their daily needs. Hence, a motor insurance policy helps the family bear the expenses even after any misfortune.
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