With the recent update in traffic rules by the Indian Government, the vehicle owners have to face a plethora of difficulties and penalties. Now adding to hassle, another rule has been passed by the State Transport Commissioner, Shekhar Channe, according to which, vehicles with no insurance will be towed in Mumbai by the Regional Police Officials, and will be returned to the owner only after it is insured. The statement has put Mumbaikars in not a very easy situation, but it can reap many benefits in terms of road safety. The commissioner said, “it was an important aspect of every vehicle on road". Further, he stated “the car dealers have insurance as a part of the on-road pricing of any vehicle. But there have been buyers who fail to renew car insurance once it expires after 1-3 years." Let us understand why car insurance is important and how it can make the roads safer in Mumbai.
Why Car Insurance Is Necessary and How it Makes the Roads Safer?
Car and two-wheeler insurance is a legal requirement, which shields you against the financial losses in case of vehicle damage. It will also provide financial support for the injuries caused to passengers, pedestrians, and even the other driver. Two-wheeler or car insurance gives you a surety that you will be financially secured in case you are involved in any mishap happening or accident on the road.
Some of the major reasons for having your vehicles insured are:
Damage Reimbursement
The major benefit of having your car and other vehicles insured is that it covers any foreseen damage to the vehicle. The vehicle repairs may also make you pay through the nose. However, in the case of having car insurance, all the expenses are covered, and you do not have to pay anything additionally. Moreover, car insurance also provides support in case of theft.
Liability ramifications
Once you are involved in
Third Party Liability car insurance or
third-party liability two-wheeler insurance, you are probably safe from any legal issues of a road accident caused by you. The TPL insurance will cover and pays for loss of property and wellbeing of the other driver.
Pays off for hospitalization
In the case of being involved in road accidents and suffering from serious injuries like fractures, which require hospitalization, the vehicle insurance company will be liable for all the expenses.
Pays off to the family in case of demise
Accidents happen, and some of them are unfortunate enough that may lead to the demise of the owner. In such cases, the vehicle insurance policy will support the family expenses (*subject to the terms and conditions of the policy).
What if your motor is not insured?
The Government of India has declared it illegal to drive a vehicle without insurance under the
Motor Vehicle Act 2019. Absence of insurance can lead to a high penalty of 2000/- or imprisonment of up to 3 months. And if these are the roads of Mumbai, the traffic police officials can lead to towing of your vehicle, which only will be returned when the vehicle is insured. If you are wondering how the officials would know whether a vehicle is insured or not, then be informed that the State Transport Department has linked Vahan Software to the insurance database, and their mobiles can figure out the registered number is insured or not. So, be aware and get your vehicle insured today.