The steep increase in penalties for traffic offences has created a flutter in the Indian vehicle owners’ community. Along with other offences, the fine for not having valid motor insurance too has been doubled. The move is not without reason, many people fail to renew their motor insurance, putting other people’s lives in danger.
Why is motor insurance important?
Road accidents are one of the biggest killers in India. In 2017 alone, 1.48 lakh people were killed in road accidents and several more were injured. Considering the public safety aspect of owning a vehicle, having third-party insurance was made compulsory decades ago. Motor insurance ensures that in case of an accident, the needs of the victim are taken care of. For instance, a vehicle is involved in an accident and a commuter gets injured. The medical expenses should ideally be borne by the vehicle owner. But in case the vehicle owner is unable to pay the victim, car insurance ensures that the medical bills of the victim are paid.
Types of motor insurance
There are two types of motor insurance available in the country—third party and comprehensive insurance.
- Third-party insurance: Also known as liability-only insurance, third-party insurance is the most basic and the cheapest form of car insurance. Having third-party insurance is mandatory and it covers only the damage caused to a third party such as injury, death and damage to property due to the insured vehicle. Third-Party insurance, however, does not cover the damage to the insured vehicle or vehicle owner.
- Comprehensive motor insurance: A comprehensive motor insurance is an exhaustive policy that covers a variety of damages in addition to third-party liabilities. It protects the insured car against thefts and accidental damages. Most comprehensive insurance policies also offer add-on covers for damages due to man-made and natural disasters. Bajaj Car Insurance, available on Finserv MARKETS, also offers coverage for the vehicle owner and the rider.
Motor insurance payment
Most people used to pay car insurance premium annually till last year. But a Supreme Court order changed the dynamics of the industry. The court ordered buyers of new cars to purchase motor insurance for at least three years and two-wheelers for a minimum of five years. Even though long-term insurance saves vehicles owners from the hassle of frequent renewals, it has increased the initial cost of insurance. In a respite for vehicle owners, premiums for Bajaj Allianz motor insurance can be paid in easy monthly instalments. You can purchase car insurance on EMI through Finserv MARKETS in a simple and hassle-free process. Long-term insurance combined with flexible payment tenure has the potential to increase insurance penetration. It will also discourage vehicle owners from skipping renewals after the vehicle ages and depreciation accelerates, which is a common practice currently.
Advantages of buying motor insurance
Motor insurance ensures that damages caused to you or a third party are covered. A comprehensive policy insures damages to the vehicle along with any costs arising out of injury to the vehicle owner.
Peace of Mind
With a comprehensive car insurance policy, you can live a stress-free life without worrying about the threat of the vehicle getting damaged or stolen. Theft of vehicles especially sports utility vehicles is on the rise in the country, which makes protection against theft very important. Motor insurance also takes care of damage in natural calamities which are completely unpredictable.
No Claim Bonus
Insurers provide no claims bonus as an incentive to policyholders who do not raise any claims in the previous policy years. It is a form of discount given to policyholders on the premiums that have to be paid in the following years.
The threat of the vehicle breaking down in the middle of the road is real. With thousands of moving parts, no one can be sure when a small part will malfunction and stall the vehicle. With Bajaj Allianz motor insurance you don’t have to worry about finding a mechanic and leaving your vehicle unattended. The company has tied up with over 4000 garages and you can avail cash-free servicing at any of them.
The importance of motor vehicle insurance cannot be overstated. It ensures the safety of the owner as well as other people who use the road. The high initial cost could have been a hurdle for some but the issue has been addressed by the availability of car insurance on EMI.