Should I Carry My Car Insurance Policy at All Times?
In our country, every car owner is responsible for ensuring that their vehicle is adequately covered by Car insurance. Car insurance protects you from financial emergencies in case of accidents, theft, or damage to the vehicle due to unforeseen accidents. Car insurance is also a mandatory legal requirement under the Motor Vehicles Act 1988. In this blog, we at Cholamandalam Insurance will explain if it is important to carry your car insurance policy with you at all times and if there are consequences for not doing so. We also provide useful tips to ensure you comply with the law.
Mandatory Requirement by Law
Most of us are aware that in India, it is mandatory for every individual who owns a car to have a valid car insurance policy. As per the Motor Vehicles Act of 1988, third-party liability insurance is a minimum requirement for all vehicles on Indian roads. Third-party liability is the most basic form of car insurance. It provides coverage for damage or loss borne by a third party due to any accident caused by your vehicle. Driving a vehicle in India without the mandatory minimum coverage of third-party liability insurance means you are not complying with the heavy fines, penalties, and sometimes even imprisonment. The amount of penalty levied will differ from state to state.
Consequences of Not Carrying Car Insurance
Heavy Fines: Driving on Indian roads without valid car insurance will not be taken lightly. You will be subjected to heavy fines ranging from a few thousand all the way to lakhs of rupees. The amount of fine depends on the state you are in and the severity of the violation.
Legal Troubles: The financial burden of penalties aside, you will also be subject to legal issues. This can be as grave as facing imprisonment. Driving without valid car insurance is a punishable offence. If you happen to meet with an accident, you could be in serious legal trouble.
Financial Vulnerability: One of the main purposes of owning car insurance is the financial protection that comes with it. If you meet with an accident without owning car insurance, you will be responsible for covering all the expenses, including medical bills and repairs to your own vehicle and the third party involved. This can be financially crippling and can cause significant stress.
Risk to Third Parties: If you don’t have a car insurance policy, you can also cause financial and legal trouble to other people. In the case of third-party liability in an accident, you cannot compensate the victims. This will leave them in a tough situation as they will have to bear the costs of fixing their vehicle and hospital expenses, if any. They might also have to deal with legal trouble due to this accident.
The Importance of Carrying Your Policy
As is now evident, it is important to carry your car insurance policy at all times. Even so, let us look at a few reasons why -
Legal Compliance: As mentioned earlier, it is a legal requirement. Failure to own and carry your car insurance can lead to legal consequences. This can affect your driving record with the state and cause trouble with getting insurance in the future.
Financial Protection: We do everything we can to avoid overspending and maintaining a budget. Car insurance helps keep this prudence intact. It provides financial protection at the time of accidents, theft, or damage. With car insurance, you can maintain peace of mind knowing that you have financial aid in such unexpected circumstances.
Peace of Mind: Knowing you are insured gives you peace of mind while driving. You can focus on the road without constantly worrying about an accident's emotional, physical, and financial repercussions.
Protection for Third Parties: In the event of an accident, if it is your fault and there is damage caused to the third party, they will be compensated for their loss using your car insurance. This protects them and you from financial and legal trouble.
Tips for Carrying Your Insurance Policy
To ensure you are always carrying your car insurance policy, follow these tips:
Digital Copies: We are in the digital age, and storing a digital copy of your car insurance on your phone has become very easy. Take a clean picture or scan of the policy and save it on your phone’s local storage and the cloud. Make sure it’s easily accessible.
Physical Copy: Physical copies of important documents will never be a thing of yesterday. It is very much still advisable for you to carry a physical copy of your car insurance. Having both a physical and digital copy ensures you will be able to provide at least one of the two when required.
Renew on Time: What good is it to carry your car insurance if it's expired? Ensure you keep yourself notified of the expiry date of your car insurance and renew it on time.
Check Policy Details: Make sure all policy details are as per what you intended for them to be at the time of car insurance purchase. If there are any discrepancies, contact your insurance provider and sort it out.
Verify Third-Party Coverage: If you have purchased a comprehensive car insurance policy, ensure it includes third-party coverage. Most policies do include this as it's mandatory, but it's always good to check yourself.
Keep It Up-to-Date: Over the years of owning a car, you tend to make certain modifications to it, like changing the color. In such a case, make sure to inform your insurance company so they can update your car insurance policy with the required details and coverage.
Carrying your car insurance policy at all times is a responsible and prudent practice. It protects you against financial protection, ensures you are legally compliant and gives you peace of mind while driving. Save yourself from fines, legal issues and other problems and purchase car insurance today to stay on the right side of the law. We at Cholamandalam car insurance encourage you to explore all options of car insurance policies here. Take the time to understand your options and pick a suitable one for yourself and your vehicle.
Disclaimer: This article is published in association with Cholamandalam Insurance and not created by TNM Editorial.