Repercussions of Driving Without Car Insurance
Sep 28, 2020

Penalty for Driving Without Car Insurance in India

The rapidly increasing rate of accidents has made motor insurance the need of the hour. According to the Motor Vehicles Act of 1988, a third-party car insurance policy is a compulsion in India. The laws and regulations are generated for the safety of all the Indian citizens while driving on the roads. However, a majority of drivers skip purchasing car insurance post buying a car. When an individual doesn’t buy a car insurance plan, he/she must deal with severe repercussions in the future. Breaking any law is bound to attract punishment. Here’s a closer look at the penalty on driving without car insurance in India:
  • An individual must surrender the driving license when he/she is caught without a car insurance policy.
  • The vehicle’s registration is generally suspended.
  • He/she must pay Rs. 2,000 or serve an imprisonment period of 3 months behind bars. In case of a subsequent offence, an individual has to deal with an escalated fine of Rs. 4,000.
A motor insurance policy is offered to the policyholders in two forms: Third-party coverage and comprehensive coverage. Although both policies differ in their coverage, the prime aim of insurance is acting as a monetary fallback option in case of any unfortunate accident. Here are a few key coverages offered under a comprehensive car insurance policy:  
  1. Car insurance covers any loss or damage of the vehicle during natural calamities like fire, explosion, flood, earthquake, etc.
  2. Provides coverage for losses against man-made disasters like riots, terrorism, or any other damage in transit by roads, rails, etc.
  3. Makes provision for a personal accident cover for passengers, drivers, paid drivers or the insured.
  4. Offers security for the third-party liabilities due to accidental damage to the third person involved in the mishap.
Since a third party coverage is mandatory, a majority of drivers scurry around to purchase it. Failure to buy at least a third-party car insurance can result in payment of hefty penalties or punishments. Before opting for a third party car insurance , go through the following things covered under the plan: Third Party Car Insurance Coverage:
  1. Coverage for permanent or partial disabilities
During an accident, both the parties might suffer from physical injuries. Severe injuries might even result in either partial or permanent disabilities. Third-party insurance covers losses or damages incurred to their other party and their vehicle.
  1. Coverage for property damage
Under third-party coverage, the policy covers any damage caused to the third party’s car. The Motor vehicles Act, 1988 allows them to claim for compensation for any loss during an accident. The unpredictability of life and rising road accidents go hand in hand. With car insurance, the fear of driving on roads is erased. If you’re worried about standing in a long queue to apply for insurance, then opt for car insurance online . Bajaj Allianz General Insurance provides the policyholders with third party car insurance online to ensure a hassle-free experience.  

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