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According to Indian Motor vehicles Act, every car owner should at least have a third party car insurance policy. Although this ordinance may seem inconvenient for individuals as it involves an annual premium payment, failing to have one would involve hefty fines. Moreover, a third party insurance only covers all third-party liabilities including any damage to the vehicle, bodily injury or even death.

Now that having third party insurance is mandatory by law, having an own-damage car insurance policy isn’t mandatory but is necessary. While the third party insurance takes care of the third party liability, own damage insurance is a saviour in case if your vehicle suffers any damages or even if it gets stolen. Let’s delve into the consequences of not having a car insurance policy.

Penalty For Driving Without a Third-party Car Insurance policy

According to Indian law, every car plying on Indian roads must have a third party car insurance. Being caught without the mandatory third party insurance have its own consequences. Under the discretion of law, if you get caught while driving without car insurance, the penalty can range from Rs.2000 on first offense to Rs. 4000 on the next offense

Driving Without Car Insurance: Consequences To Know About

Here are five consequences that you may have to face if you drive without any valid car insurance:

1. High Penalty

Previously, transportation laws and road safety was governed by the Motor Vehicles Act of 1998 which was amended to The Motor Vehicles (Amendment) Act of 2019. This act is in lieu of solving some major issues of road safety, third party insurance, etc.

According to this law, you’ll be penalized if you get caught driving a vehicle without a valid car insurance policy.

2. Payment For Third Party Damage

Third-party liability insurance helps you handle any loss due to unintentional damage to any individual or property. If there’s no valid insurance for the vehicle, you’ll have to take full responsibility for any loss or damage to third party, even in case of death.

3. Pay Loss For Damage To Yourself

What’s the usual scenario when you get forced into paying losses to a third party. Even your car can get damaged during an accident.

You can cover the repairing cost for such damages with your comprehensive car insurance policy. Not having insurance will make you responsible for your repairs after an accident. It’s quite common to experience financial strain due to the high repair costs.

4. Complexities of The Law

Apart from the financial troubles after an accident, you’ll have to face some legal issues when you injure a third party without a reasonable policy.

Tips to keep in mind before taking your car on road

• Keep hard copies of all your important documents, including your pollution certificate, RC, and license in your car.

• Keep soft copies of these vehicle-related documents on your mobile just in case.

• Plan your finances, keep a reminder and set some money aside beforehand for the renewal date of the insurance policy.

• Buy the mandatory insurance before taking it on the road. Also, having a own damage insurance is also essential in today’s accident-prone world.

Final Words

Having a comprehensive car insurance is utmost necessary before you plan to hit the road. It covers both third party insurance and own damage insurance. While the former safeguards you from confronting any penalties arising out of damage to any individual or property, the latter is a your financial saviour in case of any severe damage to your car. A complete car insurance policy like Kotak Car Secure provides all-around financial protection that your vehicle requires.

Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.

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