Here's why:
* Motor Vehicles Act, 1988: The Indian government has made it legally compulsory for all vehicle owners to have at least third-party insurance. This means that if your vehicle is involved in an accident causing damage or injury to another person or property, your insurance will cover the costs.
* Financial Protection: Third-party insurance safeguards you from bearing the financial burden of any damage or injuries you cause to others.
* Legal Requirements: Driving without insurance is a punishable offense in India, leading to fines and potential imprisonment.
Types of Car Insurance in India:
* Third-party insurance: Covers only damages or injuries caused to others by your vehicle.
* Comprehensive insurance: Covers damage to your own vehicle, as well as third-party liability.
Important Note: While third-party insurance is mandatory, most people opt for comprehensive insurance for wider coverage and protection.
It's crucial to understand the different types of insurance and choose one that meets your specific needs and budget.
