Think you can drive away without car insurance? Actually, the laws have just got stricter. Find out why car insurance is lawfully compulsory in India.
A common question that car owners usually have is whether having a car insurance policy is mandatory in India or not. The answer to which is very simple: Yes, it is compulsory as per the Motor Vehicles Act, 1988 of India. As per the law, it is mandatory for all vehicle owners to have a valid insurance policy for their vehicles while driving. You are also required to carry a valid driving license and vehicle registration documents with you.
The minimum requirement is to have a third party liability cover. Third party insurance protects you from any financial losses that may occur during an accident with a third party vehicle. However, it is always recommended to have a comprehensive car insurance policy. Apart from third party liability coverage, it also covers you and your car from any damages. Violating the rules can lead to serious consequences and penalties to the driver/owner of the vehicle.
Certificate of Insurance: Know it Well.
As per Rule 141 of the Central Motor Vehicle Rules 1989, your insurer is mandated to issue a Certificate of Insurance. Regardless of whether you buy or renew an insurance plan, this is in addition to your policy document.
Be it a comprehensive policy or a third-party plan, you will receive a certificate of insurance from your insurer. This contains all the details of your policy.
As per the rule, this certificate is issued in the format that’s as shown in Form 51.
What details does Form 51 contain?
- Policy Number and the certificate Number
- Registration mark of the insured vehicle
- Make and model of the vehicle
- Chassis Number
- Carrying Capacity
- The policyholder’s name and address
- Date and time of commencement of coverage
- Date of expiry of the cover
- Rules for qualified persons who can drive the vehicle without legal violations
- Limitations of the policy in respect of usage of the vehicle
The last two points are important as they pose a legal requirement and should be fulfilled by you if you’re driving the car. This is regardless of whether you use it for commercial or private purpose.
Keep this certificate of insurance in your car at all times. Ensure you keep the policy document at your home or office.
In case of police inspection, you need to show this certificate of insurance along with your driving license and PUC certificate.
Sometimes, Insurance Goes beyond the Law.
You think life can’t attract miseries towards you? Nope. Huge misunderstanding. Anything could happen to you and your car.
Like, you dozed off while driving and ram into a tree. Or while reversing, you hit the pole behind. Or maybe, the shrewd thief in the neighborhood executed a brilliant plan to make it disappear.
But, that’s not all. Did you know that your car is potentially dangerous even when not being driven?
Think over it. It could probably burst into flames even when not in motion. It could even slide down a slope when there is no-one seated inside.
In such cases there may be a physical/material loss to someone or something nearby. You definitely don’t want to be dragged into compensating for it. After all, you weren’t involved in the mishap.
That’s why having car insurance doesn’t just call for legal implications.
It’s the most basic thing because you can’t foresee the future. No one can. The only thing you can do is prepare for the worst.
Just remember one thing.
We Indians are always in a rush. Some rush to attend college lectures. Some rush to avoid getting a late mark at work. Some rush to drop their kids to school. While others rush for nothing.
As a result, we speed and attempt to jump traffic signals, which could lead to accidents.
Why take your chances? If not for the law, at least insure for yourself. That’s the least you could do.