Do I Really need Motor Insurance?

According to the Supreme Court Committee on Road Safety, in 2017, about1.4 lakh people died in road accidents in India. This is quite a shocking statistic. It is also a key reason why a motor insurance policy is mandatory when you take a car out on the roads.

Motor insurance comes to the rescue if you are involved in an accident, saving you the expenses of damage to a third party, repair of your own vehicle and even legal liabilities. You might think that it is an additional burden on your bank account. However, there are various reasons why motor insurance is indispensable.

1.     Covers damage

Buying third party insurance provides cover when you damage another’s vehicle in an accident that was your fault. According to the Motor Vehicle Act of 1988, it is mandatory to have a third-party motor insurance policy in India. However, a comprehensive insurance policy is much better, since it also protects you against damage due to natural and man-made disasters.

2.     Save on medical expenses

People who just suffer few cuts and scratches are really very fortunate. However, you can’t rely on your fate while diving on India’s national highways. The number of road fatalities is alarming, while the number of serious injuries are even worse. In the latter situation, having support for the medical expenses incurred can be a blessing.

3.     Provides financial support to your family

One of the most unfortunate results of a car accident is the demise of the car owner. And, if he/she was the sole earning member of the family, it can become a huge financial stressor for the family. However, if you choose the right motor insurance,you can ensure financial support for your family in the event of the unfortunate demise of the policy holder.

4.     Legal benefits

Third-party liability insurance covers all the legal expenses and damages caused by an accident that was your fault. It not only covers the medical expenses of the third party involved but also covers any lawsuit against you. Moreover, with a valid motor insurance policy,you will save on the heavy fine that you might have to pay to the traffic police for not having the mandatory insurance.

5.     Makes you a responsible citizen

What is the right thing to do if you damage someone else’s property or cause them injury? Paying for their expenses is the least that you can do. Buying car insurance ensures that you fulfil your responsibility, without any financial burden. Having motor insurance gives you peace of mind and enables you have a stress-free drive.

So, before adding the latest car to your list of assets, make sure you check out motor insurance. And, remember to renew your insurance policy regularly to avoid any future complications.