Having car insurance is required by law in most states. If you are at fault in a car accident, the auto liability coverage required on your car insurance policy helps pay for covered losses, such as the other party's medical bills and damage to their vehicle or other property that results from the accident.
Car insurance provides protection for the driver, passengers, and other vehicles on the road from any damages caused by an accident. Car insurance also provides coverage for any injuries that may occur during an accident. This coverage can be used to cover medical bills as well as lost wages if someone is unable to work after an accident.
Health insurance, on the other hand, does not provide protection for accidents or injuries caused by accidents because people are expected to be healthy and have their own coverage in place in order to protect themselves from any potential health problems or injuries.
|
Car Insurance |
Health insurance |
| You pay very little only if you intend to drive and where/when it’s required |
You pay very little insuring coverage of your health for major issues; you aren’t required to have it |
| The insurance covers only repairs and liabilities; not maintenance |
The insurance covers only surgery and substantial issues; not for the accident caused damages |
| You can buy insurance from any provider with lot of benefits |
You could buy insurance from many different plans and providers |
| Even if you decide to have an expensive car it has an affordable option to insure |
You decide to get care at the network hospitals |
More benefits that are Categorized to Car Insurance more than Health Insurance are:-
- You must pay for car insurance, even if you don’t drive
- You must pay for insurance through the one provider allowed
- That insurance will pay for new tires, windshield wiper fluid, oil changes, and even your gas
- Because those things are covered by the insurance, you don’t really get a say in what those things cost; in fact, you don’t even know
- If you want a Porsche instead of a Civic, that’s fine, the insurance you pay will be the same.
Why Car Insurance is Mandatory in India?
Car insurance has been introduced in India with the Motor Vehicles Act, 1938 which states that it is compulsory to have a valid third party insurance to drive a vehicle on public roads. As the law suggests, it is mandatory for a vehicle owner to have at least third party bodily injury and property damage insurance to drive in a public place. The motor insurance was made compulsory in India in 1938, but the first car was introduced to India in the year 1897.
In the starting period when the cars were introduced in India only the Rich owned the cars. The number of cars operating was few and are only limited to the urban areas where there is well road connectivity. But in the 1930s the number of cars grew drastically and so the number of accidents. The victims of the car accidents were left to the mercy of the drivers as there was no strict law favoring the victims. This has led to the introduction of Motor Vehicles Act in the year 1938 which mandates third party insurance for every vehicle driven in public places.
The act had been revised time to time and the limits for death and disability of third party was fixed with changing times. In the starting the limits for death and disability were Rs.50k and Rs.25k respectively. But these limits have been removed with the amendments and only the third party property damage limit is set.
Types of Car Insurance in India:
When you drive vehicle on roads, you are exposed to road accident risks but simultaneously others are also at danger of accident because of your driving. Damage may result to physical injuries and loss of property.
There are two types of damages:-
- Third party damage
- Comprehensive car insurance.
Third Party Car Insurance: Third party damage means the damage caused by you to third parties. Third parties include pedestrians walking on road, other vehicle drivers. The damage may be to property of third parties or physical damage.
Comprehensive Car Insurance: A Comprehensive car insurance is one of the most valuable types of car insurance that covers both third-party liabilities and damages to your own car as well. Own damages means the damage caused to you in the form of property damage or physical damage by your own driving.
What is the Reason to Introduce Car Insurance in India?
The main reason for introducing car insurance is that the victims of motor accidents were at the mercy of the car owners and most of the times owners were not ready to settle the claims as there was no law. The concern for the lives of third parties and their families led to the introduction of Car insurance in India.
Health insurance even though introduced long back in India has not become famous due to the below reasons:-
- There were very few private hospitals where only the rich who could afford the treatment costs. Hence the requirement for health insurance was not seen by normal people.
- Healthcare costs were very minimal in the early 70s and 80sexcept for the complicated surgeries.
- Middle class and the poor people had access to Government hospitals where almost everything is free; hence there was no need to think of health insurance.
After the advancement in the medical technology the treatment costs have gone up and the need for health insurance has become visible as most of the treatments are not available in the government hospitals. So, people were forced to visit private hospitals to get treated which involves huge amount of amount. Without medical insurance it would be very difficult for a normal person to adjust such a huge amount of money.
The main reason for Car insurance to be compulsory is that the Third party victims are on the mercy of the owner whereas in the health insurance you are responsible for your own health.
Under the Motor vehicles act only the third party insurance is compulsory whereas the Own damage is optional. There were situations where the Owners of the car were not able to settle the claims of the victims which lead to the introduction of third party insurance.
Indian government cannot force you to take something that is directly related to you and you are affected if it doesn’t exist. Expired car insurance leads to the movement of the car on the road without any valid insurance which is against the law.
For car insurance expired cases inspection can be done using the link sent by the
insurance companies or physical inspection would be carried out based on the need. Without inspection most of the insurance companies would not accept the risk. For best online car insurance quotes visit
Our Portal and get the best online renewal car insurance quotes at best rates.
How Car Insurance works in India?
Under the Indian Motor Vehicles Act, it is mandatory for a car owner to have a valid car insurance. Driving without a valid car insurance is an offence and can attract severe penalties and can even lead to a suspension of your driving license. There are several reasons why getting a car insurance has been made mandatory in India. Here’s a quick look at some of them.
- It covers Damages to your Car
Repairing a damaged car can drain your finances quickly. Whether the damage to your car was a result of your own negligence or due to a third-party, a car insurance can help you pay for the repairs.
- It covers Third-party Liabilities
If you get involved in an accident, a car insurance can help you tide over third-party liabilities and other legal ramifications. For instance, if an accident caused by you directly leads to property damage or injury of a third party, a car insurance can compensate for the injuries caused as well as for restoring the property to its erstwhile state.
- Ensure medical care for injured third-party
In case of a car accident where a third person gets injured, the hospital treatment can be costly. When you have third-party cover, the insurance company pays for the treatment, ensuring that the third party gets the care they need. Plus, it absolves the car owner-driver from any financial obligation to pay for the treatment.
- It provides Financial Compensation to your Family in the event of your Death
If the car accident that you get into leads to your demise, car insurance can help your beneficiaries financially by providing them with a death benefit. This way, you can ensure that your family leads a comfortable life even when you’re not around.
- Provide a financial safety net to owner-driver
In the unfortunate scenario that the owner-driver sustains injuries that lead to a permanent disability, the immediate implication is that they will not be able to earn a livelihood. In such a scenario, the car insurance company provides monetary compensation to the owner-driver. With Car insurance in India being mandatory, a dignified life for the owner-driver is ensured.
- It covers Hospitalization Expenses in the event of an Accident
Not all accidents lead to death. In some accidents, you might escape with minor or non-fatal injuries. In such cases, a car insurance plan can come to your rescue. It can provide cover for all your treatment related expenses, hospitalization expenses, and cost of transportation as well.
- Provide peace of mind
Today, a hospital visit for even minor issues can lead to a big bill. That's why, when the third-party's hospital expenses are covered by your car insurance, it ensures that the focus can be on recovery and not the financial costs of healthcare.
Car Insurance vs Health Insurance
While car insurance and health insurance might seem very different, the two share many traits in common. Details such as coverage options and policy procedures share additional similarities.
Both aim to reduce out-of-pocket medical expenses. Through the coverage options listed below, health insurance and car insurance policies aim to reduce your financial liability if you're injured or sick.
- Liability Bodily Injury: this will cover the costs of medical expenses for the other party or parties if you’re found at fault after an accident.
- Uninsured/Underinsured Bodily Injury Motorist Coverage: this provides medical expense coverage in the event the at-fault driver does not have enough bodily injury liability coverage or none at all.
- Personal Injury Protection (PIP): usually required in no-fault states, this provides coverage for medical expenses, and work loss for you and your passengers after an accident, regardless of fault.
- Medical Payments: much like personal injury protection, this provides medical coverage for the policyholder and passengers in the insured vehicle after an accident.
These coverages are designed to ease the burden on the healthcare system as it relates to car accidents. Outside of this, car insurance and health care are similar procedurally, but car insurance also covers you from medical bills, and injuries.
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Health Insurance |
Car Insurance |
| Obtained through work |
Purchased individually |
| Used more frequently |
Protects your car |
| Fee for not enrolling |
Fine for not being covered |
| Preventive care |
Maintenance not covered |
Conclusion
Shopping for car insurance can be a confusing affair. But not with PolicyBachat. Thanks to our wide-range of insurance partners, getting a car insurance plan that’s customized according to your needs is now easier than ever. By purchasing a car insurance through PolicyBachat, you also get to enjoy number of Add-ons/Riders that cover your car and you from many things, that’s not all though. We also offer amazing deals at tempting prices on our car insurance products.
Although there are many regulations on insurance rates, there is much more competition between car insurers than among health insurance companies. If you’re current car insurance company increased your rate after an accident, you can easily shop around with different companies and potentially find a better price.