Why is Vehicle Insurance Compulsory?

[vijay79]

Hi everybody. We all know that on road cost of vehicle includes tax insurance and all. Its ok we have to pay tax and other things. But i want to ask why is insurance made compulsory?. After all its our personal decision to insure our things( vehicles or any thing) or not to. who are these autorities to make it compulsary.

 

[Akash1886]

Re: why is vehicle insurance compulsary?

Hi Vijay,

Making insurance of a vehicle compulsory by authorities is positive step in my view because:

1) In-case you get involved in a mishap with the car, it may or may not be your fault but if your car has insurance then you'll be spared from paying through your pocket and the insurance company shall be paying the same amount.

2) In-case your vehicle has got stolen and its not insured then you'll not get a single penny from anywhere and you'll end up buying a new vehicle from your earnings. Where as if its insured you can submit an FIR and claim insurance.

3) In case of Natural Calamity( Act of God) or Fire, if your vehicle is not insured then you'll end in big loss where as if its insured you can expect some relief too.

4) Without a valid Insurance, as per driving rules in India, you can't drive a vehicle on road.

Regards

Akash

 

[vijay79]

Re: why is vehicle insurance compulsary?

Hi Vijay,

Making insurance of a vehicle compulsory by authorities is positive step in my view because:

1) In-case you get involved in a mishap with the car, it may or may not be your fault but if your car has insurance then you'll be spared from paying through your pocket and the insurance company shall be paying the same amount.

2) In-case your vehicle has got stolen and its not insured then you'll not get a single penny from anywhere and you'll end up buying a new vehicle from your earnings. Where as if its insured you can submit an FIR and claim insurance.

3) In case of Natural Calamity( Act of God) or Fire, if your vehicle is not insured then you'll end in big loss where as if its insured you can expect some relief too.

4) Without a valid Insurance, as per driving rules in India, you can't drive a vehicle on road.

Regards

Akash

Yes i agree with benifits of insurance but its fact that very few people do first party insurance. Most people do third party insurance just for name sake so that the RTO people wont impose fine. I think insurance is made compulsary only to get money from people.

 

[Akash1886]

Re: why is vehicle insurance compulsary?

Most people do third party insurance just for name sake so that the RTO people wont impose fine.

Why do you see it this way Vijay! See it rather as the need of the hour for being safe on road.

I think insurance is made compulsary only to get money from people.

See it as a precautionary measure. No insurance ample risk!

Regards

Akash

 

[vijay_968]

...But i want to ask why is insurance made compulsory?. After all its our personal decision to insure our things( vehicles or any thing) or not to. who are these autorities to make it compulsary.

Comprehensive Insurance is up to the Individual; if you have an old car and a trustworthy mechanic you can settle for just the 3rd party stuff. For a new car, the Comp Ins provides a guarantee of compensation.

Generally, the holder of a 3rd party insurance policy ends up paying the 3rd party as well (as the 3rd party does not have money for the emergency treatment or cannot spare from their monthly budget). Sometimes even well off people take cash from the driver as it makes them feel smart. Let's say on an average a driver pays such people once in 10-15 years. Then why the heck should anybody pay a premium for this 3rd party policy thingy ? Vijay, you've got a brilliant point there. Have you ? But wait...

Real truth IS bitter than you have imagined. Believe me I've come across really honest, humble, fragile and soooo gentle poor people, who just sit by the side of the road after something has happened to them. Those people are at par with the most honest Indian. Life has been so cruel, they fear to argue, even when THEY are RIGHT. They simply sit there, staring at nothing and thinking about their fate. It's heart-wrenching to even catch a glimpse of that sight. This 3rd party insurance is to PROTECT these genuine human beings. Lets pay.