In India, as per the Motor Vehicles Act, it is mandatory that all vehicles that operate in any public space must have a motor vehicle insurance cover. Policyholders must have at least 'third party liability' motor insurance cover even when opting for the basic insurance plans.
What is car insurance policy in India?
Car insurance is an agreement between the insurance company and the car owner wherein, the car owner will pay premiums and the insurance company covers for loss or damage caused to the car. Car Insurance is mandatory in India regardless of whether it is a commercial vehicle or a personal vehicle.
Is it illegal to not have car insurance in India?
Driving without a car insurance policy is illegal as per the Motor Vehicles Act, 1998. Third-Party Liability Insurance is mandatory for all motor vehicles to drive legally in India.
Why is car insurance mandatory in India?
The vehicle is protected from accidental damages, natural calamities, man-made disasters, in-transit damages, etc. Additionally, the owner-driver of the insured vehicle is offered personal accident cover that protects him/her from accidental injuries or death.
How many years car insurance is valid in India?
The advent of multi year car insurance While a third-party liability cover has to be issued for three years, a comprehensive cover can be purchased for one year at a time.