Car insurance or motor vehicle insurance – also known as a Third-Party Liability (TPL) car insurance – is a legal requirement in India. It carries several crucial benefits such as reducing liability in case of an accident and can compensate for damages. What’s more, it could defray some of the expenses in the unfortunate event of you being admitted to a hospital following an accident.
It becomes hazardous if you allow your car insurance to lapse. The risks that a lack of insurance cover can expose you to is several. Let’s have a look at these.
Serious financial injury
The most common mishap can be an accident, which can take place even if you are not at fault. However, if your car insurance is found to have expired on that date, it could cause you serious financial injury apart from legal harassment/proceedings. In fact, you should always carry documents for live insurance coverage while driving. If you cannot produce the documents on demand, it could be held against you and you might have to pay a penalty.
Pay for vehicle damage and injury
If you are involved in an accident, you have to pay from your pocket even if you are not “at fault” vis-à-vis the accident. You have to pay for repairing your damaged vehicle too and these can add up to a significant sum.
Trouble unlimited
Motor Vehicles Act, 2019 enjoins that you cannot drive any vehicle without an insurance cover. Rules state that one might have to pay Rs 2,000 as fine for first offense. If it’s the second time, the penalty might double and one can also be sent to jail for 3 months. One could be asked to surrender driving license too.
Vehicle survey
If your motor insurance lapses, buying a new cover will involve a survey of the vehicle, which will require coordinating with a surveyor coming to your doorstep to take a hard look at the vehicle.
Heed reminders
Both the purchase and renewal of car insurance have become extremely easy nowadays. One can do the process online. Also, while most dealers offer the service at the time of purchasing the vehicle, often personnel from the dealer would telephone you to renew the cover. Besides, you would also get text messages reminding you of such upcoming renewals.
While motor insurance is a legal requirement while buying a car, it is possible that it lapses, triggering adverse financial implications for you. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
