Motor Insurance : Why It Is A Must for Your Vehicles


04 Aug 2023

Secure your vehicle & have peace of mind with motor insurance. Get coverage for your vehicle and damages to others. Visit Kotak General Insurance for more information.

India is a highly populated country that has now progressed to the point where cars have become a necessity in most households.

Many businesses also use different types of vehicles for goods transportation, deliveries, and more. Today, it is much easier to get a car than it was years ago. And along with that, it has also become easier to get car insurance.

If you are a car owner, it is mandatory for you to get motor insurance. However, there are two types of car insurance that you can get, and only one of them is compulsory under the law. A car owner can get two insurance policies, which are first-party and third-party insurance policies.

The first-party insurance policy covers the car or personal damage of the car owner or policyholder, whereas, under the third-party insurance policy, the damage caused to the third-party’s car, property, or personal life is borne by the first-party i.e the person causing the damage. In this case, the third-party can be anybody else besides the first-party.

According to the Motor Vehicles Act of 1988, third party insurance cover is mandatory for anyone who owns or drives a motor vehicle in India. There are two reasons why the law makes car insurance compulsory.

• It is to maintain certain regulations among car owners and drivers. Since the first-party is liable to compensate for any damage caused to the third-party, they are bound to be more responsible on the roads.

• The second reason is backed by the consciousness of being smart to secure your financial losses. In the event of any damage, you are bound to face financial expenses. So, to be immune from that, you need to get motor vehicle insurance.

Even though first-party or comprehensive car insurance is not compulsory, it is sensible to keep your car insured against any possible damages that may or may not be under your control. The goal of car insurance and the insurance company is to financially back you up in case of any liability faced by you.

Getting motor insurance gives you many benefits that you should not be missing out on.

Financial security

We keep stressing enough about the importance of financial security because it is sometimes neglected by most. When you purchase motor vehicle insurance, you are receiving compensation for damage caused not just to your vehicle but also to your life. Even if you are an individual with access to emergency funds, you will find car insurance to be more practical and beneficial.

Add-on coverage

Different policies have different add-on coverages that you can pick at the time of buying your insurance. Today, you can buy motor insurance online within a few clicks. Not only do you get many options to choose from, but you can easily compare car insurance policies online to see which company is offering the best deals. Some of the add-on coverages that you can look at are zero depreciation cover, road assistance cover, daily allowance cover, passenger cover, etc. It is to be noted that these might affect your premium price too. However, the goal is to strengthen the protection of your car with additional coverage.

Network of garages

If your insured car has suffered damage in any circumstance and is still in repairable condition, you are eligible to take it to any of the garages listed in the network of your car insurance company. This benefit is available if you opt for cashless car insurance at the time of buying your policy. The benefit is not limited to having access to a network of garages. Under cashless car insurance, all you have to do is inform your motor insurance company about the damage and they will take care of towing your car, dropping it off at the garage, and inspecting it. Not only that, but they also take care of the compensation directly with the garage.

No claim bonus

In any case, if you haven’t used your car insurance claim during its period of time, then you are eligible to get a bonus when you renew your policy. However, it is important that you check with your insurance company about this feature before you buy the policy.

A car insurance policy is designed to suit your benefits and lessen your burden during unfortunate times like accidents, injuries, or demise. Your safety and ensuring nobody is harmed by you is your personal responsibility and hence a dependable car insurance policy will come in handy.

Related Blogs
Benefits of car insurance
5 tips for buying motorcycle insurance online at an affordable rate
The Need of Car Insurance

Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.