What is vehicle insurance? Read more in detail.
Vehicle Insurance detail -Vehicle insurance is an important aspect of owning and driving a vehicle in India. It is mandatory by law for every vehicle on Indian roads to have a valid insurance policy. Vehicle insurance is a type of insurance policy that provides financial protection against loss or damage to the vehicle due to accidents, theft, natural calamities, or man-made disasters. In this article, we will take a closer look at vehicle insurance in India.
Types of Vehicle Insurance
In India, there are two types of vehicle insurance policies available:
- Third-party Liability Insurance: It is mandatory by law for every vehicle on Indian roads to have third-party liability insurance. It covers the vehicle owner against any legal liability arising due to damage caused to a third-party in case of an accident. It also covers the legal expenses incurred during the court proceedings.
- Comprehensive Insurance: It is an optional insurance policy that provides comprehensive coverage to the vehicle owner. It covers the vehicle against loss or damage due to accidents, theft, natural calamities, or man-made disasters. It also covers the legal liability arising due to damage caused to a third-party in case of an accident.
Benefits of Vehicle Insurance
Having a valid vehicle insurance policy provides the following benefits to the vehicle owner:
- Financial Protection: Vehicle insurance provides financial protection against loss or damage to the vehicle due to accidents, theft, natural calamities, or man-made disasters. It helps the vehicle owner to bear the expenses incurred during the repair or replacement of the vehicle.
- Legal Compliance: It is mandatory by law for every vehicle on Indian roads to have a valid insurance policy. Having a valid insurance policy ensures that the vehicle owner complies with the legal requirement.
- Personal Accident Cover: Most comprehensive insurance policies provide personal accident cover to the vehicle owner. It covers the medical expenses incurred due to any injury sustained during the accident.
- No Claim Bonus: If the vehicle owner does not make any claim during the policy term, the insurance company provides a discount on the premium during the next policy renewal. It is called the no-claim bonus.
Conclusion
Vehicle insurance is an essential aspect of owning and driving a vehicle in India. It provides financial protection against loss or damage to the vehicle due to accidents, theft, natural calamities, or man-made disasters. It is mandatory by law for every vehicle on Indian roads to have a valid insurance policy. There are two types of vehicle insurance policies available in India- third-party liability insurance and comprehensive insurance. Vehicle insurance provides several benefits to the vehicle owner, including financial protection, legal compliance, personal accident cover, and no-claim bonus. It is important to choose the right insurance policy that meets your requirements and provides adequate coverage.
