The Repercussions of Not Having Car Insurance by

In India, it is legally mandatory for all the vehicle owners to have Motor Insurance, as per the Motor Vehicles Act, 1988. As per the regulations of this Act, when you buy a vehicle, a motor insurance policy is part of the deal and the price in inclusive of the premium amount. However, the duration of this insurance is usually valid for only one year, after which the policy is to be renewed by the insured. That is where most policyholders fail. Research shows 70% of Indian vehicles run without insurance. This is made even more disappointing by the fact that there is a plethora of companies offering car insurance online to ease things for their customers. Alas, to no avail.

Have a look at the several consequences that may arise if you are driving without a valid car/two-wheeler insurance:

1. Penalties and legal fines

As the per the regulations, there are heavy penalties for driving uninsured vehicles -

Two-wheelers: ₹10,000
Light Motor Vehicle & Three wheelers: ₹25,000
Other Categories of Motor Vehicles: ₹75,000

2. Legal complications

Getting caught driving without a motor insurance can lead to your driving license suspended, along with your registration. Your vehicle can be seized by the enforcement authorities who have the power to do so. As per the MVA 1988, the court can penalize the offender with imprisonment up to 3 months.

3. Third party liability

Third party liability is one of the major reasons of having a vehicle insurance, as it will cover any losses caused to others by you. In addition, in cases of death in an accident, without a valid insurance your liability for compensation would be much higher. You will also have to deal with the legal suit that would be filed by the state under negligent driving along with the insurance claim for the deceased’s family.

4. Damage to self

In an accident, your own vehicle may also undergo damages. The burden of those payments will fall solely on you, in the absence of a comprehensive insurance policy. A vehicle’s repair costs can put a dent on a budget.

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