Consequences of Driving Without Car Insurance In India

Published On Apr 15, 2021 10:00 AM By InsuranceDekho

According to a study by New India Assurance, around 70% of Indian road cars are uninsured. Know the consequences of driving without car insurance in India.

According to the Motor Vehicles Act, any vehicle driving on Indian roads should have a valid car insurance policy. Fortunately, you have acquired an insurance policy when you buy a new car. Your car insurance policy car insurance premium is included in the vehicle's on-road rate.They usually issue car insurance plans for a year. Until your car insurance renewal, you should not drive it. According to a study by New India Assurance, around 70% of Indian road cars are uninsured.

Consequences Of Driving Without Car Insurance In India

If you drive your car without a valid Car Insurance policy, here are 5 consequences:

  • High Fines

Previously, the Motor Vehicles Act of 1988 governed road safety and transportation laws. The Government also passed the 2014 Road Transport and Safety Bill, which will replace the 1988 Motor Vehicles Act. The Bill penalises you harshly if you are caught driving without a valid assurance cover, you will be charged ₹2,000 and/or 3-months prison, community service and ₹4,000 for subsequent offence.

  • Payment For Loss Of Injury To Third Parties Or Land

If you unintentionally damage anyone or property that surrounds them, you handle the loss. This is referred to as third-party car insurance. Your insurance coverage requires this third-party liability coverage, and you are avoiding a loss. In the absence of a valid insurance policy, you will be responsible for the losses. If the person dies, your risk will be very high.

  • Pay Loss For Harm To Yourself

What happens if you are forced to pay losses to a third party? In an accident, even your car is damaged. Your comprehensive car insurance policy covers the cost of repairing such damages. You will be responsible for the repairs if you do not have insurance. Because of the high cost of car repairs, a financial strain is inevitable.

  • Complications Of The Law

You will face legal issues besides the financial loss of an accident that results in injury to a third party and/or yourself if you find your car without a valid insurance policy. You'd be punished, questioned, and possibly imprisoned.

  • No Claim Bonus Loss

When your car insurance expires and you do not renew, you lose the No Claim Bonus that you have accumulated during your current policy, besides the fees and fines. If no claims are filed during the current year, they reduce car insurance premiums for the following year. This discount increases and saves your premium each year. Allowing your car insurance policy to lapse results in the loss of your NCB and the end of the higher premium when the policy is renewed.

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Conclusion

India holds the record of having the world's highest number of road deaths. Individuals have a moral obligation to follow traffic laws and drive carefully. You risk endangering other people's lives and property if you drive carelessly and rashly. Property, liability, and medical coverage are all included in an auto insurance policy. If you don't already have one, you can have one. It would cover all of your third-party liabilities. The Government of India has made Third-Party Liability Insurance mandatory. It is advisable to renew your car insurance on time and avoid the consequences.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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