Why Is It Mandatory To Have Car Insurance In India?


3 min read

Updated on Aug 08, 2023

Why is insurance required in India if you buy a car? The reason is that car insurance is mandatory in India. You cannot drive a car unless you have a basic third party liability cover. The comprehensive car insurance policy is an optional policy but you have to compulsorily buy the third party liability plan as soon as you buy a car.

Why is Car Insurance Mandatory in India?

Here are some reasons which indicate the importance of motor insurance and make you understand that why you should compulsorily buy a car insurance plan as soon as you buy a vehicle in India:

1. Protects Your Vehicle

A car insurance plan protects your vehicle and this is why it is mandatory to have a good car insurance policy at all times. You can get a comprehensive motor insurance plan and keep your vehicle covered against accidental damages, fire damages, thefts, natural calamities, etc.

2. Protects Third Party Liabilities

If you damage any third party vehicle, property or individual while driving a car, you will be liable to compensate for the damages. This can be a very steep expense to deal with. When you have a vehicle insurance cover in place, all third party liability covers are included in it.

Also, third-party insurance coverage is mandated by the law. You can choose to get a comprehensive cover but that is optional. Compulsorily, a third party liability is needed in India to ply your vehicle on the Indian roads.

3. Protects Your Finances

All kinds of damages resulting from a road accident involving your vehicle can be very expensive to fix. If you have a comprehensive car insurance cover in place, you can easily make a claim and keep your own money protected. Else, you will have to spend a lot of money repairing your vehicle and also paying out third party compensation. Also, you may be fined for not having a valid car insurance plan and that will just add to your financial liabilities. This answers your queries on do you need vehicle insurance online plans in India.

4. Protects You and Other Individuals

Road accidents most commonly leave people injured, and in some bad cases, even death. This is highly dangerous and so you need to assure that you will be rushed to the best hospital if you ever involved in an accident. Personal accident coverage is mandatory along with a car insurance plan of up to Rs 15 lakhs for owner-driver as mandated by the IRDAI. It can be taken along with your car insurance plan or separately. So, in case of a personal accident, it pays for medical expenses incurred due to an accident.

Have you ever wondered if car insurance should be optional in India? If yes, then remember that in the year 2019 itself, there have been 51,000 fatalities only due to road accidents, i.e. about 140 cases every single day!

5. Protects You From the Law

And last but not the least, if you want to know which vehicle insurance is mandatory in India, you need to know that third party car insurance is compulsory. So, if you drive your car without a policy, you will get penalised. If you ever wonder if is car insurance mandatory in India, yes it is. So, get a cover and stay legally safe.

As you can see, these are some of the most logical as well as valuable reasons to justify why is car insurance mandatory. Keep them in mind and you will not have any doubts about getting car insurance online.

Also read: How Does Car Financing Affect Your Car Insurance in India?

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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