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Is Car Insurance Mandatory in India?

Health Insurance Coverage

Understanding Mandatory Car Insurance in India

Yes, car insurance is mandatory in India under the Motor Vehicles Act, 1988. Every vehicle owner must have at least a third-party liability insurance policy to legally drive on Indian roads. This requirement exists to protect the financial interests of both vehicle owners and third parties involved in accidents.

Types of Mandatory Coverage

1. Third-Party Liability Insurance

  • Legally mandatory for all vehicles
  • Covers damages to third-party person or property
  • No coverage for own vehicle damage

2. Personal Accident Cover

  • Mandatory for owner-driver
  • Provides coverage of ₹15 lakhs
  • Covers accidental death and permanent disability

Penalties for Not Having Insurance

Driving without valid insurance can result in:

  • Fine of ₹2,000 for first offense
  • Fine of ₹4,000 for subsequent offenses
  • Possible imprisonment of up to 3 months
  • Vehicle registration suspension

Recommended Additional Coverage

While third-party insurance is mandatory, we recommend comprehensive coverage for better protection:

Comprehensive Coverage Benefits
  • Own damage protection
  • Natural disaster coverage
  • Theft protection
  • Fire damage coverage
Optional Add-ons
  • Zero depreciation cover
  • Engine protection
  • Roadside assistance
  • NCB protection

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