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Sponsored feature: Have your renewed your motor insurance yet?

11th Sep 2020 3:10 pm

Here's why it is important to buy or renew your insurance.

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Motor insurance has been made mandatory by the government to protect owners of vehicles from financial liabilities in case of a mishap. The update in the Motor Vehicle Act 2019 has listed more stringent rules that every car and motorcycle owner must know and abide by. This also includes the mandatory requirement of a bike or car insurance every time your vehicle is on the road.

Motor insurance companies provide a minimum of liability-only insurance (third party insurance) with 1-year validity at the time of purchase, as recommended by the government. You can also choose to buy a comprehensive insurance policy yourself. Once it is set to expire, the owner must renew the insurance policy as soon as possible. This not only safeguards the driver, vehicle owner, and third-party from needing to pay hefty bills of damage repair, but shields the owner/driver from legal action. If you want to know why insurance is a must, read on to get all your answers.

Why is motor insurance a must?

While driving a vehicle, you might be the most safety conscious person on road, but others around you need not necessarily be so. It might so happen that an unforeseen incident leads to self-damage or damage to the third-party and their property. In such cases, it is best to have an insurance cover to protect you from financial liabilities. Car and two wheeler insurance provide you with the facility to pay for the damage caused to your own vehicle or the third-party. Similarly, if you are a victim of an accident caused by someone else’s vehicle, you can claim compensation which will be covered by their insurer.

This is the reason why IDRAI has made it mandatory for every vehicle owner on Indian roads to at least have a liability-only insurance cover. You can be asked to produce your insurance papers at any moment while on the road by an on-duty officer in uniform. If you fail to show the papers, you will end up with a Rs 2,000 no-insurance fine.

When should you renew your insurance?

The validity of most insurance policies in India is up to 1 year. It is best to get your insurance renewed at least a few weeks before your policy is set to expire. When your insurance policy nears the expiry date, it is a good idea to explore other options that suit your requirements. At the time of renewal, you can either continue with the same insurer, choose a different policy with the same company, or even change your insurance company. If you have any no-claim bonus stacked against your cover, it can easily be transferred to the new insurer. This will help you avail some deduction on the base premium. Additionally, the renewal period is also a good time to buy new add-on coverage like zero depreciation coverage, tyre protection, return to invoice, etc, for better coverage for your vehicle.

Getting motor insurance is imperative because it pays for damages and/or hospitalisation and reduces your liability in case of an accident. Keep a check on your insurance policy expiry date and get it renewed in time!

Also see:

PUC certificate now mandatory for insurance renewal

Finance Ministry says two-wheelers merit GST rate cut

OLX introduces franchisee model for pre-owned car dealerships

 

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