Most of us have a dream car. To realize this dream, we save for years. When we actually buy it, we leave no stone unturned to protect it. We drive carefully, get it serviced regularly, avoid taking bumpy roads and try to keep it as neat and tidy as possible. Not buying an insurance policy for your car, however, can render all this care and protection futile.
Buying a car has become fairly simple and that has resulted in a sharp increase in the number of cars. And given the traffic and road discipline scenario in India, having additional safety for your car makes sense. Your car can be easily damaged by someone else’s reckless driving and the event where they pay for the damage is highly unlikely. This makes insuring your car a wise decision. It not only covers your expenses in case of accidental damage, but also provides financial support in case your car is stolen or vandalized. It is not just about safety. A mandate under the Motor Vehicles Act, 1988, states that a motor vehicle should have an insurance to cover any damage to the life and property of others. Not buying an insurance also makes you liable to incur a heavy fine!
There are two major types of insurance policies. The first is a liability-only cover that insures you against any legal liability in case of an accident but does not cover any damage to your vehicle. The second is a package cover that covers liabilities including burglary, terrorism, riots, storms, and landslides.
So, in case you are looking to insure your car, you might want to consider National Insurance Company. It is a government of India undertaking and has been a trusted insurance provider since 1906. Its private car package policy provides cover for loss or damage to the vehicle, liability to third parties, along with an accident cover for the vehicle owner/driver.