Is there a need for four-wheeler insurance? This is a question that most ask, especially if you have been insurance premiums for years without making any claims. Such people consider themselves safe riders who do not require car insurance and believe it to be both a yearly hassle and financial burden, which they would avoid. The thing is you can never predict when something unfortunate happens.
While you might be a safe rider, there is no guarantee that others are safe, and if you are caught in an accident, not having the insurance leads to a challenging consequence. So, why is there a need for one?
Pays for damages
It is a fact that vehicles are expensive. If you are caught in an accident owing to third-party negligence, and your four-wheeler gets damaged, you need to bear the cost of repair in the absence of insurance. Such policies protect you from additional damages caused, like repairing a broken windshield or the price of a significant technical repair owing to collision and more. If you have insurance, the repair costs for an accident are borne by the insurer.
Reduces legal and financial liabilities
According to the Motor Vehicle Act of 1988, buying a basic third-party liability insurance plan is compulsory in India. This policy offers protection against legal and financial liabilities if you cause an accident that injured third-party individuals or damages their vehicle. Suppose your insurer takes care of all the financial responsibilities for the treatment of the injured party while protecting you from legal repercussions arising out of the incident.
Pays for treatments
Another reason why car insurance is essential is that you get covered by the insurance plan if you need hospitalisation. If you get caught in an accident where you undergo some serious injuries or a fracture. Now, here, you need a treatment that would last for days. If you hold a valid plan, you need not worry about the hospitalisation and medical expenses as they get borne by insurance companies.
The deceased party receives compensation
If one gets injured in a major accident that results in death, it could lead to death, especially if the deceased is the primary breadwinner of the family. In such cases, the family of the deceased gets compensated by the insurance company.
Why has the Government made four-wheeler insurance mandatory?
As harsh as it sounds, but the fact is that traffic management and infrastructure is not so excellent in the country. Lack of infrastructure makes it necessary to buy car insurance online. While negligence is a significant cause of road accidents, there are also frequent reports of potholes causing traffic jams, bridge collapsing, and vehicle damage. There is no knowledge on safety practices which increases the risks levels.
India ranks at the top in the list of countries known for road fatalities and death. The purchasing power is also rising daily, and more are becoming vehicle owners, while the state infrastructure remains unchanged. Hence, vehicle owners are exposed to higher risks. This scenario itself makes it imperative to buy 4-wheeler insurance.