“Motor insurance gives protection to the vehicle owner against
(i) Pays for any Third Party Liability determined as per law against the owner of the vehicle. Third Party Insurance is a statutory (mandate) requirement.
(ii) Damages to his/her vehicle and The owner of the vehicle is legally liable for any injury or damage to third party life or property caused by or arising out of the use of the vehicle in a public place.
Driving a motor vehicle without insurance in a public place is a punishable offence in terms of the Motor Vehicles Act, 1988.”
Hence every motor vehicle by Law should have Insurance, but are the Insurance company taking leverage of the mandate rule?
Why is that which kind of Insurance your vehicle needs is already decided by the vehicle dealers?
Let’s discuss it here.
- What is Insurance?
Insurance is an agreement providing protection against a possible eventuality.
- What kind of Insurance is required for Motor vehicles?
It depends of person to person, whereas the law requires every motor vehicle to have a Insurance for Third party Liability.
As per the Act, this policy needs to cover the insured’s liability, in respect of death or bodily injury, and damage to property of third parties. The limits of liability are also prescribed in the Act.
- Why should you not buy Insurance that the dealer’s offer?
Dealers offer Insurance which helps them again more commission rate and higher premium. Such policy might not required by you.
- Can we refuse for the Insurance that a dealer offers?
Yes, you can refuse for the Insurance policy that the dealer offers and opt for any Insurance policy that suits your need.
- What if a dealer/Agent refuses to negotiate on Insurance policy?
It’s your Right to buy an Insurance that suits your need. If agent /dealer does not help you with that you can file a complaint with IRDA (Insurance Regulatory Development Authority).
Make the Right choice, choose what is required rite now for you.
Jago Grahak Jago !!!!
A good read. And really knowledge increasing post.
We should always go for the customised insurance instead of paying a huge amount to precustomized one.