5 Reasons Why Car Insurance is mandatory in India
India is a country with a 130 crore population that shares different colors, cultures, languages, religions, festivals, etc. creating a huge difference in the world. The world’s 2nd most populated and one of the fastest-growing nations has its problems. The fastest-growing economy has strengthened the automobile sector and the users too. Every year users of vehicle owners are rapidly increasing. Therefore, the traffic is rapidly creating an issue and hence it results in accidents.
Accidents are unwanted occasions that always result in destruction. This is the reason the government of India has made it mandated every Indian to haveinsured their vehicle. Car insurance is a policy offered by an insurance company to the car owner, which they can bear the burden of a car in perils. Perils are the event that bought financial, legal, or life loss in many cases.
Major Reasons for having Car Insurance in India
Cars are the basic mode of traveling which serve in the winter, rain and all the tough weather. In India, many reasons incline you to have a car insurance policy. The prominent aspects that push a car owner in India to insure a car are as follow: –
1. Traffic: – On the roads of India, traffic is one of the significant aspects. The more traffic the more the chance of an accident. Metropolitan cities of the country face a regular problem that results in accidents and an accident can cost you financially and legally. There is a famous saying in “precaution is better than cure”, an insurance company offer you protection on such cases.
2. Population: – The more population the more is the traffic and crime. Theft is a crime that can hit your financial stability. The price of a car comes in lakhs, owning a car is still a luxury in India. We can’t afford the stolen of our lakhs in a second. Hence car insurance offers you the security of your vehicle from any kind of theft. The car insurance policy pays you the amount of the car, so that you may not feel financial insecurity.
3. Government Norms: – The Government of India has passed Motor Vehicle Act in 1988, which says that every vehicle owner must have third party insurance. Third-party insurance bind the insurer to pay for the third party in case of accident by the insured vehicle.
4. Disasters: – The comprehensive car insurance policy offers full proof protection in registered natural and man-made catastrophes. India has many areas that are most prone to disaster. Every year there is a record of massive financial losses due to these disasters. Car insurance protects your car when it comes to a disaster.
5. Safety: – Accidents, theft, third-party liability and so counting are the incidents that can affect the car. This can affect the pocket of an owner. In some circumstances a small penny and some circumstances they can empty your pocket. Therefore, car insurance helps you pay for the bill and save a huge percentage of your money. There is a quote “A penny saved is a penny earned”.