According to the Motor Vehicles Act of 1998, driving on roads without vehicle insurance is restricted. Also, without third-party liability insurance, running motor vehicles are illegal. If you wish to avoid paying traffic penalties, you should buy an insurance policy as soon as you buy the vehicle. You can start building your car insurance plan with careful research on the suitable car insurance price.
Consequences of driving without an insurance policy
In India, a motor insurance policy is of utmost importance for every car owner. All vehicles must have insurance and third-party liability coverage. Otherwise, you might have to pay penalties. So what happens when you don’t get a car insurance policy? Do you simply get caught by a cop, pay the fine and get over with it?
Here are the main consequences you can face without a valid car insurance policy.
1. Pay a fine or face imprisonment
The latest Motor Vehicle Act states you must pay Rs 2,000 as a fine if caught with an uninsured vehicle. But, if this happens again, you can be fined up to Rs 4,000 on the spot. In extreme cases, you can face up to 3 months of imprisonment.
2. Pay expenses for your damages or any third party/property
If your vehicle gets caught in an accident, you are liable to pay all the damage and repair expenses caused to your car. You cannot argue with the third party to pay the recovery value of the damages caused in most cases since that would involve an FIR and a due court procedure. So, it is better to have insurance rather than get into unnecessary hassle.
3. Lose driving rights
If you drive without valid insurance, your driving license might get suspended, or your car registration might get cancelled for a certain period. Later, it will be difficult for you to renew your driving license, and you might have to pay a fine to the government.
4. Lose Vehicle Value
Without car insurance, your vehicle is at risk of losing its market value due to inflation. Every year your car’s valuation decreases which you can avoid by having a good insurance plan. It helps in retaining your car value for a longer time. If you have a Bajaj Allianz car insurance policy, filling out the Bajaj Allianz motor claim form to claim your insurance is super easy and convenient.
Benefits of getting a car insurance policy
A car insurance policy can offer certain good benefits to a driver. The owner will be provided with personal accident coverage and coverage for injuries in an unfortunate situation.
- You can also get access to available cashless garages. They will repair all the damage to your vehicle as per the claim while you don’t have to pay for it yourself. The repair bill will be settled directly with your insurance company.
- Repair any kind of damage to your car due to accidents falls under the insurance policy coverage benefits. Also, if your vehicle gets stolen, the insurance policy can cover it. You will be paid if the car cannot be recovered by any means.
That is why choosing the right insurance policy for yourself is essential. While multiple insurance companies offer various plans, benefits, and price points, you should decide after comparing all the policies to get a plan suitable to your needs and budget.
When accident deaths have increased by 7%, it’s imperative to abide by traffic laws. We should maintain a proper speed limit and use safety equipment alongside holding a good car insurance policy with considerable coverage.