What Year Was Made Car Insurance Mandatory?

Why Third Party Insurance Is Mandatory?

Third-Party Insurance is mandatory to protect the interests of accident victims, ensuring they receive compensation. It also helps maintain road safety by holding vehicle owners accountable for their actions.

Is it mandatory to inform RTO about any changes I make in my car?

Any changes in your car such as CNG/LPG kit fittings, addition of accessories etc should be informed to the concerned RTO immediately and necessary changes should be made in your RC Copy. The same should be informed to your insurance company and your car insurance policy should be endorsed for the same after paying the required premium.

Is Car Insurance Mandatory In All States?

Car insurance is mandatory in India, but there are certain exceptions. The most common exception is that if you own a car less than three years old and have not made any claims on your car’s third party liability cover, then you are not required to buy the insurance. Some other exemptions from buying car insurance include:

• If your vehicle is not used for business purposes;
• If your vehicle does not have a commercial registration;
• If the value of the vehicle does not exceed Rs 25 lakh.

Is It Mandatory To Have Insurance For Car?

Yes, it is mandatory to have car insurance in India by IRDA. If you are driving a vehicle that costs more than Rs 1 lakh or has been used in an accident, then you must have auto insurance. In case of an accident, insurance is mandatory for your car. It helps you to recover from the loss and get back on your feet again. Even though you have to have insurance for your car, it's not always necessary to buy comprehensive coverage. You can go with a lower-priced option that will cover damages like theft and vandalism.

Why is Car Insurance Mandatory?

Car insurance is mandatory in India as per the Motor Vehicles Act, 1988. This law requires all vehicles to be insured before they can be driven on public roads. The primary reason for this is to provide financial protection to third parties who may be affected by accidents involving vehicles. Car insurance in India typically covers liability for damages caused to third parties, including injuries or property damage. By requiring car owners to have insurance, the government aims to ensure that victims of road accidents are compensated for their losses, and the financial burden is not borne by the affected individuals or the public at large. Additionally, insurance can also provide financial protection to the car owner in case of theft or damage to the vehicle.