4 reasons why you need car insurance on Indian roads

We list the four major reasons why taking a car insurance plan must be the first thing you do today.
Driving in India is certainly a lot of fun, what with several kilometres of new roads being laid every year. But an undeniable fact of driving on Indian roads is that it is also a risky activity – it pays to get a good car insurance policy in India because –

1 The roads are in a bad condition.

While the country’s road infrastructure is in a much better shape than in previous years, there is no disputing the fact that many smaller roads across India are in a very poor condition. On the one hand, there are major highways and overarching bridges in the cities, while on the other hand, there are potholed and rutted roads even in the metros and towns. Many roads are not suitable for driving, since they may damage the car chassis and puncture the tyre tubes. If you have car insurance, you need not pay for these repairs yourself.

2 Many drivers drive rashly.

Repairs and restoration are required when your car meets with an accident. Many car drivers in India are not careful about following road rules and they drive rashly, endangering their own lives and those of others. If such a driver cuts across you or tries to overtake you or rams into your car, you will have to get yourself checked for injuries and turn your car over for major repairs. The good news is, car insurance pays for both!

3 You might be held responsible for an accident.

On the subject of rash driving, it is also important to note that while most accidents will not be your fault per se, you might still be held responsible for them. It might also happen that a miscalculation on your part might result in a car accident. In such cases, your car insurance with third party liability can help you. It covers the legal expenses and other aspects of an accident in case the matter goes to court. Also, a comprehensive car insurance plan covers not just third party liability but also accidental damages, so this is an added benefit.

4 Your loved ones are waiting for you at home.

The most compelling reason to take car insurance is that your safety is paramount, and your loved ones depend on you for everything. This is a sobering thought, and it should keep you away from the temptation to speed or indulge in any wrong behaviour on the roads. You can also rest assured that your insurance policy will pay for your hospitalisation and treatment in case you meet with an accident, and that your loved ones will be taken care of in case of your unfortunate demise.

Term insurance – keeping your family safe when you can’t

Term insurance protects the interests of your family in your absence – and financial security is the best gift you can give them! 

Some things are impossible to do. Stopping time. Predicting the future. Ensuring our children are never hurt or ill. Knowing how much money one will end up with. You could make a few guesses, maybe even be right sometimes, but the basic rule of life is that it is unpredictable for all.

Where there is happiness on the one hand, there may be financial worry on the other. Where one may be in great health, one may suffer agony in matters of the heart. It is true that life is made up of a series of conflicting phases. So where one may have wealth today, one may face an uncertain future tomorrow. The point is, there is no way to predict what the next moment will be like. And so, all one can do is anticipate a bad phase after a good one and prepare for it.

However, preparing for the future requires taking a fundamental fact on board: one may provide for the family for as long as it is possible to do so, but our loved ones may be forced to fend for themselves when one is absent from their lives. You may create a large corpus of money via savings and investments, but does it account for future inflation, increased needs and higher living costs?

More to the point, will it pay for such milestones as children’s higher education and wedding, closing a home loan, spousal support, etc.? It is possible that you may leave behind debts that your family must then try to repay from its already scant resources. In the worst case, they may need to sell the house in order to get sufficient funds for their future expenses.

Don’t let this picture scare you – you can take affirmative action by buying a good term life insurance plan.

What is term insurance?

Term life insurance is an insurance product in which the policy holder pays a relatively low premium amount for a high sum assured cover. It provides one of the largest sum assured amounts across life insurance products in India today. Thus, it protects your family’s needs when you can’t.

• It is a pure life insurance product, i.e. the sum assured is paid to the family only on the demise of the policy holder. This is why you should buy it:
• It is affordable and it provides a high coverage amount. So it is suitable for those with a lower income, or those who do not wish to buy expensive life plans.
• Its sum assured takes care of the family’s future needs.
• You can buy term life insurance online easily in a few minutes. The best insurance providers do not insist on a medical test to complete the purchase process.

Easy Steps to Renew your Car Insurance

Did you know that in 2015-16, out of the 19 crore registered vehicles in India, only 8.26 crore were insured, according to an Economic Times report that mentioned the data released by the General Insurance Council (GIC)?

It is also important to reiterate here that third-party insurance cover in India is mandatory, as per Section 146 of the Motor Vehicles Act, 1988, failing which your vehicle can even be impounded, as has started to happen in places like Puducherry, says an article in The Hindu.

So, why is there such an enormous gap between what the law of the land has prescribed and that of the actual compliant vehicles plying on Indian roads?

Well, this gap is primarily due to the fact that such policies come with a one year contract and have to be renewed every year to continue with the applicable benefits. So, if you are an owner of a car, you must inculcate the good practice of marking the calendar every year or setting digital reminders for your car insurance renewal. Do remember that any unexpected accident that happens after the lapse of your policy will not be covered by your insurance service provider.

Gone are the days when you had to ring up an insurance agents and fix up an appointment or visit the insurance office to get an existing policy renewed. Today, it has become a lot easier to go online and get your car insurance renewed in a matter of minutes.

Steps to Renewing your Car Insurance Online

• Visit the online portal of a reputable general insurance provider and visit the 'Motor Insurance' section.
• You can renew an existing policy even if it was taken from any other insurance provider.
• Keep the existing policy documents and Registration Certificate (RC) ready to fill out the necessary details.
• Make the most of the in-built tools and resources (such as a premium calculator) to arrive at the premium amount that you will have to pay during the renewal process.
• Decide if you want to avail the No Claim Bonus (NCB) or let it accumulate further for a higher claim in the coming years.
• Explore the need for any add-on covers such as 'Road Assistance Covers' and add it with your insurance renewal policy.
• Once you are satisfied by the final insurance premium amount, make an online payment to buy the renewal online and get it delivered right to your inbox. 

You can even avail the services of online insurance service aggregators to make an easy comparison amongst a host of insurance service providers and take a policy that best suits your needs. For instance, if you want a high NCB in the subsequent year(s) or want the Insured Declared Value (IDV) to be a higher figure, it is easier to go online, make these comparisons and then arrive at an informed buying decision. So why wait any longer? Check out car insurance renewal and have a hassle-free driving experience on the Indian roads.