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Why is Car Insurance Mandatory

As per the Motor Vehicles Act, possessing a third-party insurance plan is compulsory for every car owner. But why is it so important and why has the Government mandated car insurance? 

A car insurance policy helps safeguard you from financial shocks arising from accidents that affect you on the road. They are a reliable backup plan that provides support to car owners and may, in fact, be your saviours. The accidental mishaps can be devastating for you, your family, and the third parties involved. Insurance plans help you rise from the financial strains and distress as the insurer covers for all damages caused depending on your chosen plan and provided you were abiding by the rules and regulations at the time of the accident. 

Once you provide all the required information, you pass on the burden to your insurance company. There are two major types of car insurance policies – Third Party Liability and Comprehensive Car Insurance. Depending on the chosen policy, the scope of cover may differ but is beneficial nonetheless. In the wake of any incidents, all expenses are borne by the insurer. 

Moreover, in case you don’t file for a claim in an active policy year, you become entitled to a No Claim Bonus (NCB), i.e., the discount you get on the amount of your car insurance premium for the following years. In addition to NCB, you all get access to various add-ons such as zero depreciation cover, roadside assistance cover, etc. That further adds to the benefits of having car insurance. 

Thirdly, apart from all the financial benefits offered, insurance for your car also provides a great deal of peace of mind. It helps lessen the burden of the consequences of an unexpected event and gets rid of the sudden mental pressures that may arise due to possible financial losses. 

This compulsory car insurance investment ensures that you would not be caught up in any financial mess with a high bill of repairs or compensations. It lets you enjoy and ride your dream car with your loved ones tension-free. It is mandated to help you, your family, and any third party involved stay afloat amidst any possible sinking situation. 

Buying insurance is another way to save money and secure your future from any unforeseen circumstance whilst also keeping you prepared and vigilant at all times. Cholamandalam MS understands your need to plan your and your family’s security plan beforehand and offers its car insurance with top benefits to become your reliable hand of support – mentally & financially!

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