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Why Should You Ensure The Validity of Your Motor Insurance?

With changing times, the preferences of individuals are seen to be changing. It ranges from food habits to travelling. The comfort of one’s vehicle makes it a preferable option. Moreover, there is flexibility with regards to the route and time of commute.

But driving a vehicle has its share of responsibilities. This includes practicing safe driving along with complying to mandatory requirements, one of which is having vehicle insurance. The original Motor Vehicles Act, 1988 as amended by the Motor Vehicles Act, 2019, both made having motor insurance mandatory.

Let us understand the importance of having a valid motor insurance policy –

As responsible and law-abiding citizens, we need to ensure that we comply with the laws of the country. One such law with regards to owning and maintaining a motor vehicle is carrying a valid motor insurance policy.

In addition, a valid motor insurance policy helps you stay at peace, knowing your insurer covers the risks. It helps you enjoy your ride with peace. Also, you can purchase motor insurance online in just a few clicks.

Say, for example, you are driving down the road and, god forbid, come into an unexpected turn damaging your car. If opted for a right insurance plan, it makes sure any damages to your vehicle are insured. It depends on the type of policy as to what is included and excluded from your insurance cover.

Read more to know the policies that you can buy –

Third-Party Insurance

A third-party cover protects against liabilities in case of damage to property or any injury or death of a third party. The law states this is the minimum insurance cover that one needs to buy to drive a vehicle. The recent amendment makes it mandatory to purchase a long-term third party policy. This policy tenure varies for private cars and two-wheelers. A long-term three-year policy is mandatory for private cars whereas a five-year policy in case of two-wheelers. Commercial vehicles, for now, can avail annual plans only.

Comprehensive Insurance

While third-party insurance may fall short to cover the owner or the driver of the vehicle, a comprehensive plan includes both, the driver, along with its co-passengers and third-person. Any damage to the vehicles is also included under a comprehensive cover. Also, damages to your vehicles due to natural as well as human-induced perils are covered by this plan. Theft, burglary, vandalism, cyclones, earthquakes, fires, riots are some to name a few. If you are not cash-strapped, opting a comprehensive cover will ensure overall protection.

Standalone Own Damage Insurance

A standalone own damage (OD) plan helps you safeguard your interest. Similar to a comprehensive plan, it covers all damages with respect to your vehicle. But a caveat to this policy is that you can buy an OD policy only with a third-party liability cover and is limited for private cars and two-wheelers.

Lastly, a valid motor insurance policy ensures you avail add-on covers with your base insurance plan. It increases the coverage offered to you at a marginal premium. Make sure you select the right add-ons at your next two-wheeler /car insurance renewal. Finally, a motor insurance policy will save you from financial distress in crucial times.