As per Motor Vehicles Act, A motor vehicle in a public place is potentially a dangerous and lethal instrument. Unlike other properties which may be insured or not at the option of the owner, a motor vehicle is required by law to be insured in respect of the user's liability for death, bodily injury or damage to property of third party. This is valid for all kind of vehicles: two wheeler, four wheeler or commercial vehicles.
A Motor Insurance or Vehicles Insurance can be broadly classified in 2 types:
Third Party Cover: Third party insurance covers you against death or injury (caused by your vehicle) to pedestrians, passengers and pillion riders, occupants of other vehicles, and outsiders other than passengers. This is mandatory by law for any vehicle on Indian Road.
Comprehensive Cover: In addition to covering the damage done to third party in the form of injury, death or damage to vehicle, our own vehicle also get damaged; Driver and his co-passenger also get hurt during any accident or explosion or lighting etc. Hence it becomes important to have a comprehensive cover. Many plans also covers the towing charges, theft and burglary in such cases.
Car insurance is the protection against unfortunate incidents like accidents, terrorism and natural and manmade calamities that have the potential to harm your vehicle and cause you financial losses.
You can either avail just third party car insurance policy, which is mandatory to have to drive in India. Or you can have comprehensive car insurance policy. This policy covers third party damages and injuries as well as provides personal accident cover, damage to your own car, coverage against terrorist activities, explosion, lighting, theft, burglary etc in a comprehensive manner.
Yes, it is mandatory to have car insurance as per the Motor Vehicle Act 1988. You need to compulsorily have third party car insurance if you do not have comprehensive car insurance policy. It is illegal to drive without third party car insurance policy.
Yes, LPG and CNG cars are also provided insurance coverage but the registration certificate should be updated with this information.
Yes you can transfer the car insurance policy in the name of the buyer. You just need to fulfill the documentation formalities with respect to the sale of the car.
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