Motor Insurance— Here's Everything Millennials Should Know
Driving a car is a steppingstone in every millennial's life. If you are one of them, you will agree with this - You wait to turn eighteen and navigate your daily grind in a bike or car. You want to live your life for driving your vehicle as much as possible. But beware! It is crucial for you to know that road accidents are happening at every nook and corner. The count of fatal accidents is on the rise, says the source.
Most millennials get so excited to cruise the town using their new vehicle that they forget a significant thing – motor insurance.
Driving in India can be highly challenging sometimes, especially on a highway or an arterial road of a town. No one else can understand the worries and hefty bills that come with an accident better than bike riders and car drivers. There are many reasons to support this fact.
To secure yourself and your vehicle, you must buy motor insurance. A vehicle insurance policy, be it for a car or a bike, serves as a financial safety net that safeguards you against monetary loss due to an accident or theft.
Let's dig deeper to know more about motor insurance and its importance in your life:
What is Motor Insurance?
The primary purpose of purchasing motor insurance is to get coverage against losses that you might have to incur in case of an unlikely event. It helps you take care of your vehicles in case of any unforeseen event in life.
Here are the various inclusions of a motor insurance plan that maximize the benefits you get while minimizing the risks:
Personal Accident Cover:
We know roads are prone to accidents. It is unfortunate that the driver also gets hurt during crashes, along with the vehicle. This is one of the reasons why insurance companies include the coverage of personal accident costs in their plans.
According to the 2002 Indian Motor Tariff, it has been made compulsory for motor insurance plans to include personal accident cover. This means you will bring home the bundled personal accident covers, no matter you buy a secondhand or a new car.
Third-Party Liability Cover:
All the renowned insurance companies in India offer third-party liability insurance plans to their policyholders. Under this cover, the insurance companies indemnify the insured in the event of death, or bodily injury happened to a victim. Having a third-party liability feature in your vehicle insurance policy compensates for the damage to the property of people held in trust or the custody of insured persons other than the property of the insured.
As per law, it is mandatory for you to buy third party insurance for all your vehicles.
Daily Commute Allowance:
Most millennials love to travel a lot because of their work or personal preferences. They travel in and out of the city almost every day using their vehicles. However, this also makes them more vulnerable to road accidents.
In the case when you have met with an accident and your vehicle has gone for repair, you will have to pay more for the daily commuting needs than usual. To help you out, some of the well-known insurance companies in India offer daily allowances to pay a fixed amount that you may need to pay for traveling while your vehicle is being repaired for the valid claim. It is provided for a maximum of ten days and can extend up to 15 days in the event of total loss or theft of the vehicle, depending on the policy terms.
Why Is It Important for Millennials to Get Motor Insurance?
- Apart from being mandated by the law, one of the primary reasons to choose a motor insurance policy is to protect yourself from third party liability costs.
- The latest Motor Vehicles Bill passed by the parliament in July 2019 came into effect from 1st September 2019, which makes sure that people have their motor insurance in place. If not, then they are liable to pay a penalty of Rs. 2000 or imprisonment for up to 3 months or both for the first offense. For the second offense, you'll be charged a fine of Rs. 4000 or imprisonment up to 3 months or both. Stricter penalties will be charged for not wearing you a helmet or not carrying the insurance policy.
- If you are going out on a road trip, it is most likely that you will love to drive your vehicle. The best practice is to have your car or bike insurance updated so that you are protected from any damage cost if you meet an unlikely event.
Hence, knowing all these critical factors about motor insurance, millennials must go opting for it right away.