Why You Should Get Your Vehicle Insured
Reasons why motor vehicle insurance is both necessary and compulsory:
Vehicular accidents are common sights, especially in urban metropolitan cities such as Mumbai. With the statistics only pointing to an increase in the already soaring number of automobile related accidents on our roads and highways, not to mention the underdeveloped infrastructure of our transport systems, the need for motor insurance is clearly understandable. In fact, the need for it is so apparent that is has been made compulsory by law. Automobile insurance provides financial cover not just to the insured parties, but also covers damages to third parties, if any. Yet another benefit of vehicular insurance is that it covers damages suffered by the insured parties' vehicles even as a result of natural disasters or unlikely events such as floods, earthquakes, terrorist attacks etc. In addition, accessories such as music systems, air-conditioners and body kits may be covered by the same insurance policy.
The impact of a road accident is felt by over four lakh individuals every month, with many of these cases being fatalities. The number of lives claimed on the road increases every year, with more and more people opting to purchase their own vehicles. There is a sense of lurking urgency that has driven the government to make car insurance mandatory by law, as stipulated by the Motor Vehicles Act, 1988. The aforesaid law applies to not just individual owners of automobiles, but also corporate entities. Traffic authorities reserve the right to inquire about the insurance papers of any car, a copy of which must be retained in the vehicle at all times to be produced on demand. Not only this, if an individual wishes to drive a vehicle then he or she must first obtain a valid motor insurance policy, without which they are not licensed to drive any motorable vehicle.
Motor insurance, like all other insurance policies, comes in several variations, with tailored plans to suit four wheeled vehicles, two wheeled vehicles and commercial vehicles as well. If you drive a luxury car, you will be expected to pay a higher premium than someone who drives a more affordable commuter class vehicle. Other determining factors in deciding the insurance premium are the individual's past driving history, age, sex etc. Motor insurance isn't just mandatory; it must also be mandatorily renewed every year. The renewal must be carried out on time, as there is no provision in the Motor Vehicles Act for any grace period, and the fines levied for driving an uninsured vehicle are quite severe. Moreover, when buying a new car, owners are expected to notify insurance authorities within fourteen days of the purchase so that the new insurance papers can be drawn up.
Ultimately, a car or scooter or motorcycle is an investment. It isn't one that usually appreciates in value, but is an investment nonetheless, and motor insurance policies are responsible for protecting this same investment one makes when buying a vehicle.