Motor vehicle insurance policy

                                                                                      [Image source : policyboss.com]

What is Motor Insurance?

Motor Insurance the only type which everyone is forced to take while buying a bike, car etc. Even while driving the owner needs to keep the insurance papers with him to escape from the wrath of Traffic police. It has been made mandatory by The India motor vehicles act 1988. All the motor Insurance in India is governed by IRDA, Insurance Regulatory and Development Authority which has been given the status to foresee the matters related to this. The Act came into force in 1989.

Vehicle Insurance provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise there from the specific terms of vehicle insurance vary with legal regulations in each region. To a lesser degree vehicle insurance may additionally offer financial protection against theft of the vehicle and possibly damage to the vehicle, sustained from things other than traffic collisions.

History of vehicle Insurance

History goes back to First world war were constant damage to cars and other vehicles at that time which required constant repair. In United Kingdom during 1930 they had made vehicle insurance compulsory for the drivers or owners to be insured for their liability for injury or death to third parties whilst their vehicle was being used on a public road. German followed United Kingdom and enacted similar legislation in 1939. After this, any country followed suit and enacted such laws to protect the insured and as well for the citizens who get damaged because of collisions.

Need for Vehicle insurance

Be Responsible:

The damage with car or any vehicle could be higher and if you had caused damage to a friend you will rush to help, the same logic has to be applied to all the strangers on the street. Vehicle insurance protects every one and if you had got into any collision you will also receive compensation on that day. Accident is just a probability and it may be caused by anybody driving outside by collision also, ca insurance is a risk protection and financial protection which will be barred by insurance companies.

Other benefits:

Apart from damage due to collisions it also protects the owner financially if it has been vandalized in riot, stolen by unknown, destroyed by fire etc. There are ranges of extra benefits which are being provided as add on benefits nowadays.

Renew your vehicle Insurance periodically and on time to get all the benefits.