Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Claim, renew, manage & moreLogin

Understand Why Car Insurance Is Mandatory In India

Written by Saad Ahmad
Updated On Oct 17, 20232 min read

Car insurance policy can be useful in many ways. Here are reasons that explain why car insurance is a necessity.

This article will not only explain the reasons behind the government's compulsion, but also the many forms of vehicle insurance available on the market and how to acquire car insurance online in India with ease. Driving on Indian roadways is particularly hazardous due to a number of variables. It is a populous country that continues to expand. Moreover, social and economic mobility is expanding. All of these elements combine to result in a staggering quantity of cards on the road. The mandatory purchase of automobile insurance ensures that no one will be left with an astronomically large repair bill if they are involved in an accident, as the other person's insurer will cover the cost of repairing the damages they have caused as a third party.

Understand Why Car Insurance Is Mandatory In India

Why Is Car Insurance Required In India?

The advantage of owning and driving a car is currently enjoyed by millions of Indians because of rising disposable incomes, abundant vehicle availability, and simple purchase procedures. In India, automobile insurance is required for four reasons:

  • Coverage for Damaged Vehicles to Avoid Expensive Car Repairs

Automobiles are not only costly to purchase, but also to maintain. A minor ding or break in your windshield caused by a cricket ball can potentially cost you hundreds of dollars. Have you ever wondered what would happen if you slammed into a parked automobile while trying to save a stray dog while driving on the road? You will very certainly be held accountable for the damage, but if the owner of the damaged automobile has at least third-party car insurance, their insurance company will cover the repair costs, insulating you from culpability, and vice versa. Car insurance will protect you against the financial risk of unforeseeable events occurring while you are driving or even when your car is parked, resulting in unexpected obligations.

  • Medical Treatment Coverage in the event of an Accident or Injury

When a person is wounded in an on-road collision, they will be admitted to the hospital, which will result in not only a stressful scenario but also high medical expenditures. When you have third-party insurance, the insurance company will pay for the injured person's care, ensuring that they receive the full treatment necessary for the unintentional accident and relieving you of financial responsibility as the driver/owner.

  • Providing Financial Security in the event of a Disability

While automobile insurance ensures that the insurance company pays for a person's medical treatment in the event of an accident or injury, in the sad event that the wounded person becomes permanently incapacitated, the insurance company will compensate the owner/driver financially.

  • Event of a Tragic Death, the Family will be Compensated Financially

Car insurance also includes a monetary benefit in the event that the owner/driver, who was the family's main breadwinner, died in a deadly road accident, as their loss would not only cause tremendous grief but also put the family's finances in jeopardy. The insurance company's monetary reimbursement assures that the deceased's family or nearest relatives may not only fulfill their daily necessities but also survive in times of instability.

Take Away

If you've made up your mind, but aren't sure how to get auto insurance for your vehicle, You may compare several third-party and comprehensive car insurance packages to obtain the best coverage for your vehicle. With auto insurance being so widely available these days, you can choose and select the best, ensuring that your vehicle, third parties, as well as you and your family, are financially protected in the event of an accident.

Also read - Car Maintenance Tips During Lock Down

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.


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.
Author Image
Written by Saad Ahmad
View Author

 Saad is a marketing guru and has some exciting knowledge to share about the motor and related industry. Saad in his last work with a major Indian yet global conglomerate has made direct contributions to the Insurance sector. In his free time, Saad likes to play badminton and listen to melancholic music

Explore more before buying Car Insurance

    must dotmust graphics

    Why to buy from InsuranceDekho?

    • Instant policy # within 5 mins
    • More than 45 Lac happy customers
    • Claim Support available all 7 days of the week

    People Also Read