In India, more than 5 lakh road accidents happen every year. We are one of the countries with the highest number of road accidents. Many people die every year in such accidents, which is why the government of India has made Third-Party Insurance mandatory in our country. One must understand that motor insurance is not only important because it is legally mandatory but it also provides one with financial aid in case one suffers loss in an accident or if the vehicle is stolen. Read further to understand why Third-Party car insurance is mandatory.
What is Third-Party Insurance
It is an insurance cover that protects the policyholder from any kind of legal liabilities towards third-party people or properties in case of an accident. It protects one from legal or accidental liabilities, financial loss, damage to property, or even the death of a third person. While third-party insurance only covers the losses and damages liable to third parties, comprehensive car insurance covers damages of both the policyholder, as well as third-party people and properties.
Why is Third-Party Car Insurance Mandatory?
In India as per the Motor Vehicles Act 1988, it is mandatory that all vehicles have at least Third-Party insurance. Driving without a valid insurance cover can lead to severe penalties. Indian roads are not the best to drive on and accidents are inevitable. Compensating losses of third-party people can work out to be very expensive but third-party car insurance gives people peace of mind that if there is an unfortunate incident, they have a backing. Thus, apart from the fact that it is legally mandatory, it also provides financial support when a person suffers an unexpected accident or theft of the vehicle.
Benefits of Third-Party Car Insurance
- Legal Protection and Financial Assistance – As mentioned earlier the primary purpose of third-party insurance is to protect one from legal liabilities and provide financial aid in case the need arises
- Easily Available – Since Third-Party car insurance is legally mandatory, it is easily available. Many car showrooms have tie-ups with insurance companies and encourage customers to buy car insurance from their preferred insurance provider. People can easily access car insurance online and buy or renew it themselves
- Cost-Effective – Third-Party car insurance is affordable when compared to comprehensive car insurance and one needs to pay a very reasonable premium to keep the policy valid
- Peace of Mind – Holding third-party insurance provides one with peace of mind in case any unfortunate event takes place. When the situation might already be stressful, having financial backing can be a great relief
Human life is very precious, and one cannot afford to be careless while driving as it might put the lives of themselves and others at stake. One car accident can change a persons’ life upside down. We must do our best to drive safely. One must buy third-party car insurance and not look at it as an obligation but as a practical and smart choice. To know more about car insurance policies, click here!
