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What is the Significance of RTO For Your Car Insurance?

Published On Mar 09, 2021 11:00 AM By InsuranceDekho

This article is about the significance of RTO in car insurance. It mentions the top 4 points that make this organisation an indispensable component of your car insurance policy.

The Regional Transport Office (RTO) is a significant government body that maintains the database of all cars purchased in India. It is an important aspect of a person’s life even before they decide to buy a car and continues to be a key component as long as they own one. In this article we are going to talk about the significance of the same in car insurance.

What is the Significance of RTO For Your Car Insurance?

Significance Of RTO For Your Car Insurance

The following points will help you to understand the significance of RTO in your car insurance.

Issues Your License -

It is essential to learn to drive before buying a car. As per new guidelines, prospective learners need to have a learner's license before they can start with their classes and then receive a permanent driving license. Both of these licenses are supplied by the RTO and you need to make an application before receiving either of the two. It is common knowledge that you cannot avail of car insurance without a license and herein lies the importance of RTO.

Vehicle Registration -

One of the primary significance of RTO in car insurance is that it registers your car. Your responsibilities do not end with just buying a car, you need to get it insured to have adequate financial coverage against any kind of damages that might be sustained by your vehicle and you cannot buy an insurance policy without getting your car registered under an RTO. Therefore, it plays an important part in the process of buying car insurance.

Helps In Inter-State Travelling-

In India, car insurance is decided by the manufacturing company of your car, its engine type, its model and registration year and one of the most important documents required for this are RTO documents. If your job requires you to travel frequently and you prefer to use your own car as your mode of transportation, you need to get a No Objection Certificate from the RTO near your home to gain access to interstate travel.

Accountability -

RTOs also maintains a complete database of all cars sold in India and their owners. To make the information more accessible, RTO is gradually shifting gears into digitization, to take accountability for corrupt activities and scams that plague the Indian car insurance industry. It is aimed towards maintaining a transparent procedure of data, accounts of accidents and offenses that will aid car owners, in the long run, to access their driving history while making a claim for damages from a car insurance provider.

Take Away

These points broadly sum up the significance of RTO in car insurance. It will hopefully help you to understand the role this organisation plays. As citizens of India, you must not provide misinformation and be alert at all times to check the truthfulness of the facts given to the RTO while dealing with any kind of procedure.

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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