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Why is Vehicle Insurance Compulsory?

Why is Vehicle Insurance Compulsory?
Highlights

uto insurance(Third Party Insurance ) protects you from being financially responsible for an accident. By law you must have vehicle insurance if you want to drive on the road and without it you can be fined, lose your license, go to jail and also be sued depending on the seriousness of the accident you causedFor legal purposes motor vehicles are often identified within a number of vehicle classes including automobiles or cars, buses, motorcycles, motorized bicycles, off highway vehicles, light trucks or light duty trucks, and trucks or lorries etc,.

Auto insurance(Third Party Insurance ) protects you from being financially responsible for an accident. By law you must have vehicle insurance if you want to drive on the road and without it you can be fined, lose your license, go to jail and also be sued depending on the seriousness of the accident you caused. Necessity of insurance is for the person who is severely injured/dies /disabled in a accident. If the person hit by the vehicle dies, is disabled or severely injured then the insurance company has to pay for the claim filed by him. In case a vehicle is not insured and the person dies then vehicle owner/driver can be sued in court for the damages. Damages can range from lost of a bread earner of a family and go from lacs to crores depending on the severity of the accident. Insurance companies pay for such claims!

Even if you're pulled over without car insurance you can be fined, which means you must have and maintain auto insurance. It is compulsory under the Motor Vehicles Act 1988, Under Section.196. driving uninsured vehicle. Whoever drives a motor vehicle or causes or allows a motor vehicle to be driven in contravention of the provisions of section 146 shall be punishable with imprisonment which may extend to three months, or with fine which may extend to one thousand rupees, or with both. :

For legal purposes motor vehicles are often identified within a number of vehicle classes including automobiles or cars, buses, motorcycles, motorized bicycles, off highway vehicles, light trucks or light duty trucks, and trucks or lorries etc,.

Vehicle insurance protects you from being financially responsible for an accident. By law you must have car insurance if you want to drive on the road and without it you can be fined, lose your license, go to jail and also be sued depending on the seriousness of the accident you caused. Even if you're pulled over without car insurance you can be fined though which means you must have and maintain Vehicle insurance. It is compulsory under the Motor Vehicles Act 1988.

You do not have to insure your vehicle, third party insurance is compulsory, you are insuring the person who you might hit and he dies. Insurance companies are liable to pay for the damages to the dependents/family members sue the owner for. Damages can go into lakhs and crores depending on the income of the person who dies/disabled in the accident.

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