Tip: While choosing a second-hand car, make sure to pick a vehicle in good condition, with a high resale value, and from a good dealership.
New Delhi: Could you renew the insurance for your car and bike on time? Otherwise, along with fines, you might end up behind bars. The government plans to increase stringency for driving vehicles without third-party insurance. According to the law, upon the first offence, one could face imprisonment for up to three months and a fine of ₹2,000. Upon the second offence, one could face imprisonment for up to three months and a fine of ₹4,000.
According to statistics, the country has more than 23 crore registered vehicles. Among these, only 44% have third-party insurance. Nearly 56% of vehicles are running on the roads without third-party insurance. The government is planning to enforce strict measures against such vehicles.
Why is third-party insurance necessary?
Under the Motor Vehicles Act of 1988, third-party insurance is mandatory. If a vehicle lacks insurance and causes harm to any person or property, the affected party cannot receive compensation. Therefore, third-party insurance is mandatory for all motor vehicles. It is a cover that compensates third parties for losses incurred in road accidents. If a vehicle lacks insurance and causes harm to any person or property, the affected party cannot receive compensation.
If someone or their valuable possessions are harmed by your vehicle, the insurance company will cover all expenses under the third-party insurance cover. Third-party vehicle insurance includes compensation for physical injuries, hospital expenses, loss of income, and property damage.
Road accidents in India-
Road accidents are increasing every year in the country. According to the National Crime Records Bureau report, in the year 2022, 4.46 lakh road accidents were recorded in the country. In these accidents, 1,71,100 people lost their lives and over 4.23 lakh people were injured. Due to the absence of third-party insurance for vehicles, consequently, most affected families could not receive compensation. To reduce such risks, the government is increasing stringency for vehicles without insurance. Hence, renew your vehicle insurance policy before it lapses.
Remember, third-party insurance does not provide coverage for damages to your vehicle. For this, you need to have comprehensive insurance. With this insurance cover, the insurance company will compensate for damages incurred by your vehicle. Not only that, damages caused by car theft, natural disasters such as storms or earthquakes, will also be covered.
If you want 100% claim for damages and repairs to your car, then you need to opt for a zero depreciation plan. This is an add-on. Under this, in case of any damage or total damage due to accident, you will get full claim. You just have to pay the filing charges.
Therefore, if your car insurance has expired or is about to expire, renew it immediately. As in this matter, a little negligence can cost you dearly.
Published: June 14, 2024, 17:35 IST