Why Car Insurance Is So Important In India

  • Added:
    Sep 25, 2014
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Why Car Insurance Is So Important In India Photo by Akash Naidu

The notion that car insurance is a trivial thing is not true. The people who delay or ignore buying valid car insurance plan are taking a grave risk. On the other hand, people who have the right car insurance from a valid general insurance company are secured against various kinds of unforeseen circumstances. Therefore, car insurance is necessary to protect you & your valuable assets against unforeseen events.
#Car insurance prevents you from great financial expenses-
A large section of Indian population owns car vehicle which is continuously growing. The possession of car vehicle should be preceded by the decision of getting a valid car insurance. It’s because when one drives, he is always at the risk of meeting with an accident. Even if the person drives with utmost care, another vehicle can collide with your car. However, in the latter case, it’s the mistake of the other person and hence, his insurance policy will cover your damage costs. However, in any case it reveals the importance of car insurance. It’s the best way to prevent your financial expenses incurred for repairing which will be covered by the insurance company.
Further you can learn the essential coverage options which must be included in any car insurance plan. These essential coverage options are as follows-
• Damages which occur due to man-made events such as burglary and riots and theft or other such activity
• Damages which occur from natural calamities such as landslides and fire and lightning
• Third-party liability cover- This is an important cover which covers all third-party liabilities and expenses which otherwise can cost you a bomb.
• Ensure that your car insurance coverage entitles you to take treatment in any of the empanelled hospitals under the insurance company. Ensure that the insurance company will take care of your hospitalization costs, surgery costs and doctor’s expenses.
• In case of damages to third-party property or demise of third-party, the compensation costs can be really high in the range of lakhs. Similar is the case with third-party injuries like the broken limbs or burns. However, when you have third-party liability insurance, you will be saved from all these costs. Only ensure that you renew your policy always on time to enjoy continuous benefits.
In India, it’s compulsory to get car insurance for all car owners. The insurance companies consider a lot of factors for individual car owners to determine the premium rate. They insure the vehicles at a pre-determined value. The technical term for this fixed value is known as IDV or Insured Declared Value. IDV is calculated based on price listing which is stated by the vehicle’s manufacturer. The insurance company then decides the final value considering the car tariff act. This is the value which is obtained after removing the vehicle’s depreciation value.
Considering the high numbers relating to car vehicle accidents in India, car insurance is a must for every car owner to stay protected against unprecedented events.

Author's Profile

Akash Naidu is a seasoned finance writer. His explanatory writing style helps understand the subject matter easily and offers tips, tricks and expert suggestions for insurance policy and other insurance policies also. Of various finance genres, insurance and personal finance is his own forte and he writes to help readers stay covered against risks strategically. For more information visit: Car Insurance

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