Here are some things you should know about Car Insurance
*Car insurance in India is mandatory, not optional.
*Accidents cannot be controlled – the common man must be protected from accident risks
*Not everyone can afford unexpected accident costs. Car insurance provides protection from large-scale, unexpected expenses.
Many misinformations and ambiguities surround the topic of car insurance. There’s also a lack clarity on whether mandatory or optional.
The law requires that every vehicle on the road must have vehicle insurance. A typical car owner may wonder, “Why should I pay premiums for vehicle insurance, when I might not be in an accident?”
It does sound valid, especially if it is someone who drives safely, leaves plenty of space between themselves and the vehicle in front, and breaks well. You are confident driving on roads, and take all safety precautions. So why would you get into an accident? If you don’t get into an accident on the road, why do you need comprehensive or vehicle insurance?
Let’s first look at the statistics before we move on to the explanation mode about car insurance. Motor Transport Statistics of India data shows that, from one death per six road accidents in 1991 to one per 4.5 in 2006, this ratio has increased to one per 4.5 road accidents. According to the National Crime Records Bureau, 13 Indians are killed in road accidents every hour. In its Global Status Report 2009 on Road Safety, the World Health Organisation states that India has more road-related deaths than any other country.
This is the essence of the idea. Accidents are by definition not caused by human design. They just happen. Even though you may be the most experienced driver on the road at the moment, that doesn’t mean accidents aren’t possible.
You may not be convinced by this case, but consider what happens when rash driving causes an innocent pedestrian to lose their life. If the vehicle isn’t covered by car insurance, and the driver is not financially stable, how can they afford to pay for the injuries? Even if the driver were taken to court, extensive judicial proceedings would be conducted to determine who is responsible. The question is still: Who would pay the expenses? Think comprehensive insurance instead of vehicle insurance.
Let’s now look at the second part of the story. What if the driver was involved in an accident that caused significant damage to both his vehicle and the other person? Comprehensive insurance would cover third-party coverage, as well as your expenses. This would mean that you wouldn’t have to worry about blowing a huge hole in your wallet. It also protects you against theft and natural disasters.
That gives you an idea of the importance and value of comprehensive insurance. The question is still: Should car insurance be compulsory or optional? Not everyone who drives a car has the ability to guarantee that they will pay for any injuries sustained in an accident. There have been instances where whole families went bankrupt due to lack of comprehensive insurance. This could be because the breadwinner was injured or because the driver had no coverage for large-scale accidents. Roads and road risks are shared by everyone, so everyone must share the responsibility for vehicle insurance.