As per the Indian law, driving a motor vehicle without insurance in a public place is a punishable offense in accordance with the Motor Vehicles Act, 1988. If you are caught without valid insurance, enforcement agencies can impose fines starting from INR 1000 or imprisonment for up to 3 months or both.
Why one should buy a car insurance
A car insurance policy provides risk coverage towards self, physical injury, damage/loss of the vehicle and third-party liability. Additionally, your vehicle is protected against damages incurred due to unforeseen situations like theft, personal accident, etc. Investing in an all-encompassing car insurance policy is definitely worth it.
The premium for car Insurance may vary based on the make and model number as well as the year of manufacturing of the vehicle plus you have to pay 18% GST on car insurance.
Insurance for a new vehicle is invariably bought when the vehicle is purchased, but insurance renewal rates are very low.
Today, one can easily purchase car insurance policies in a matter of a few clicks over the web. Companies claim to offer online insurance plans in less than 5 minutes. One can renew a current policy, review policies from alternate insurance companies or buy a brand-new car policy.
Car Insurance Types
There are mainly 2 types of car Insurance policies in India:
- Comprehensive Car Insurance
- Third Party Liability or Motor Third Party (MTP) car insurance
Comprehensive Car Insurance gives protection to the vehicle owner against damages to his/her vehicle and the Sum Insured under a Comprehensive Car Insurance policy reflects the value of the motor vehicle determined based on the concept known as Insured’s Declared Value (IDV).
The MTP insurance pays for any Third-Party Liability determined as per the law applicable to the owner of the car. A third-party coverage compensates only third-party injuries and their property damages. Many opt for this plan as it is cheaper compared to other options.
MTP Insurance is a statutory requirement. The owner of the vehicle is legally liable for any injury or damage to third party life or property caused by or arising out of the use of the vehicle in a public place.
Steps to buy insurance online
Log on to the company’s website and select the insurance plan that you want to purchase the insurance policy from.
1) Choose to renew or buy car insurance.
2) Enter vehicle details and personal details.
3) Select add-ons and discounts to get final premium.
4) Add complete details and check the summary. Make payment.
5) Policy is sent in PDF to your mailbox
In the online world today, there are many portals which allow you to compare car insurance policies helping one choose and decide the best insurance policy that suits one’s needs and pocket.
We recommend you to print a copy of the vehicle insurance policy and always keep it handy when going for short or long drives.