You know, driving without car insurance is a punishable offense under traffic laws! So it is mandatory to ensure every car after buying a motor. Compensation is available if the vehicle is insured by the vehicle or the owner of the vehicle, or even if a third person is damaged by the car.
Therefore, after buying a car, every car owner has to insure the vehicle. Let’s take a look at some notable aspects of motor insurance or motor insurance;
What is car insurance?
Motor insurance is the financial assistance reimbursed to the car owner / third party in the event of any damage to the vehicle for any reason or to any third party by the car. Third-party motor insurance is statutory for all car owners.
This is because the owner of the vehicle is responsible if any third party person is harmed by the use of the car in public places. So driving in public without motor insurance is a criminal offense.
Past history of compulsory motor insurance;
In 1894, automobiles first appeared on British roads. In 1898, Law Accident and Insurance Society Limited introduced the first motor insurance. The Road Traffic Act was enacted in 1930 in the more considerable public interest. Through which the third party (death liability) is made compulsory.
Vehicle insurance cover – Inclusion;
The risks in a motor insurance policy include:
- Human-made disasters such as theft, theft, riots, strikes, explosions, terrorism, etc.
- While transporting by road, rail, air, or water.
- Uninsured and disguised motorist.
- Liability for property damage.
- Accident or collision.
- Rental and car accessories etc.
Vehicle insurance cover – Exceptions;-
- The car wears and tears the electrical or mechanical breakdown of the vehicle due to aging.
- Loss or damage to be borne outside some geographical regions.
- Accident by a person without a valid driving license.
Car insurance add-on cover;-
Additional vehicle insurance cover add-ons may be available, such as-
- Zero depreciation.
- Protect the engine.
- Pathside assistance.
- Accidental cover for car passengers.
- Key replacement compensation.
- Daily washing allowance.
Types of Vehicle insurance policies;-
There are usually two types of motor insurance policies covered;
- First-party or comprehensive insurance policy
- Third-party insurance policy.
First-party or comprehensive insurance policy;-
The insurance company pays compensation to the car owner in the first party or comprehensive insurance policy. Under this policy, if a car is involved in an accident, the insurance companies will compensate the car owner or the car owner for any damage caused by the accident.
Also, even if the vehicle is damaged due to any natural disaster, if the car under the first party is damaged, the owner of the car is compensated for the loss of the vehicle. The premium rate of this policy is relatively high.
Third-party insurance policy;-
If a car is covered only by a third party insurance policy, then the owner of the vehicle is not compensated for the loss of the car if the vehicle is damaged due to any reason or accident. The insurance company will only take responsibility for the damage caused to a third person by the car.
Car insurance is essential to avoid car owners, passengers, and car accidents after buying the car. So after purchasing a vehicle, insure yourself and ensure the safety of the car.