Why You Should Not Drive Without Car Insurance in India?
Updated On Oct 17, 2023
Here are the five penalties of driving a car without a legal Car Insurance policy.
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A legal automobile insurance coverage is required by the Motor Vehicles Act for every vehicle operating on Indian roads. Fortunately, when you purchase a new automobile, you have insurance coverage. The cost of your automobile insurance coverage is included in the on-road price of the vehicle. Typically, they provide one-year automobile insurance policies. You shouldn't drive it until your auto insurance is renewed.
Why Shouldn't You Drive in India Without Car Insurance?
Here are the five penalties of driving a car without a legal Car Insurance policy:
Fines are Quite High
The Motor Vehicles Act of 2019 was formerly in charge of road safety and transportation rules. The 2014 Road Transport and Safety Bill, which replaces the 2019 Motor Vehicles Act, was also enacted by the government. If you are discovered driving without valid insurance, you will be fined Rs. 2,000 and/or three months in prison.
Compensation for Third-Party Injuries or Land Losses
You take care of the loss if you inadvertently harm someone or the property around them. Third-party vehicle insurance is the term for this. This third-party liability coverage is required by your insurance policy, and it protects you from a loss. You will be liable for the damages if you do not have a proper insurance policy in place. Your danger will be quite significant if the person dies.
Pay a Loss For Your Own Harm
What happens if you're required to compensate the third party for losses? Even your automobile is damaged in an accident. The cost of fixing such losses is covered by your comprehensive auto insurance policy. If you do not have insurance, you will be liable for the repairs. Financial pressure is unavoidable due to the high expense of automobile repairs.
The Law's Complications
If you discover your automobile without valid insurance coverage, you may face legal concerns in addition to the financial loss of an accident that occurs in harm to a third party and/or yourself. You'd be penalized, interrogated, and maybe imprisoned if you did it.
No Claim Bonus Loss
If you don't renew your auto insurance after it expires, you'll forfeit the No Claim Bonus you've earned during the course of your current policy, as well as any costs and fines. They lower auto insurance costs for the following year if no claims are received during the current year. Each year, this discount rises and saves you money on your premium. Allowing your auto insurance coverage to expire results in the loss of your NCB as well as the end of the higher premium when you renew the policy.
The world's greatest number of road fatalities is in India. Individuals have a moral responsibility to adhere to traffic regulations and drive safely. If you drive recklessly and rashly, you risk harming the lives and property of others. A vehicle insurance policy typically includes property, liability, and medical coverage. You may obtain one if you do not currently possess one. It would protect you from all third-party risks. Third-Party Liability Insurance is now required in India by the government. To prevent the repercussions, it is recommended that you renew your automobile insurance on time.
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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.