What Is The Purpose Of The Motor Vehicle Insurance Act?

Written by:

Adv kanchan kumari

Updated: 29-03-2024

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Nowadays, a car is more than just a luxury vehicle. If you are planning or going on a long-distance journey, most of us prefer to drive in the comfort and convenience of our cars rather than using other modes of transportation. With the new Motor Vehicle Act of 2019, it is even more important to understand the various factors that impact you as a vehicle owner. Motor insurance policy is one of the most important aspects that you should be aware of. Every time you purchase a car, your motor insurance policy will be just as important as the car itself.

The purpose of the Motor Vehicle Insurance Act

Whether you drive a car or are a super driver, accidents can happen at any time, and motor insurance can help keep you and your car safe. Over the long term, motor insurance is becoming a significant and valuable investment. Many insurance providers not only buy insurance policies for destruction and damage to the car, but they also include a medical policy as part of their policy. In this way, if anything happens to you while in your vehicle, your policy will cover all the expenses. Another purpose of motor insurance is that third-party liability can also be included in your policy. This means that anyone who gets hurt due to any kind of accident they are involved in can also be covered by your policy.

The ideal motor insurance policy will help you decide which one is best for you, depending on your needs and requirements. Today, you can find many competitors in the insurance market, and many insurance companies offer customized insurance policies to meet your needs. The finest auto insurance protects your vehicle against damage or loss caused by burglary and theft, natural disasters, riots and malicious acts, fire and explosions, and so on. Some motor insurance policies have a no-claim bonus, which is applicable during the period when you don’t need insurance for a long time. In this case, the motor insurance provider offers you a discount on the premium rates.

Different types of car insurance in India.

Insurance in India includes the following types.

Third-party motor insurance provides insurance for the liability losses incurred by the insured car. It is a form of compensation awarded to someone other than the vehicle responsible for an injury caused by the vehicle.
Comprehensive motor insurance policies provide damage protection and third-party insurance. The vehicle is protected in all aspects by it. You can take advantage of car insurance to protect against a range of losses including theft, fire damage, and accidents. The most appropriate option is to purchase a comprehensive motor insurance plan.

Reasons why motor insurance is important
whether you have two-wheeler insurance or car insurance, you are financially insured against vehicle damage or personal injury. Let us have a look at the primary reasons for having an auto insurance plan in place:

Financial Security: An automobile insurance policy will never leave you in financial trouble. It offers maximum protection and will serve as a financial cushion in times of disaster.
The law mandates: The Motor Vehicles Act requires third-party insurance, which should not be disregarded. If somebody is found driving without this insurance, they should be prepared to face legal consequences.
Third-party Liability: It covers any third-party liabilities that may arise as a result of damage to your vehicle. The insurance will pay for the third party's treatment costs. Third-party liability insurance protects you from any legal disputes.
Death is one of the most terrifying consequences of a mishap or accident. Things worsen when the family's principal earner dies in an accident. It puts such a household or its direct dependents in financial distress. As a result, the pay-out option included in a motor insurance plan might allow the family to be financially independent regarding day-to-day needs. Check the terms and conditions of the insurance policy, as they may differ from insurer to insurer.

Moreover, before taking any policy, you should consult an insurance claim lawyer. As legal insurance is important, it is important to consult lawyer insurance. You can contact Sharks of Law lawyers. Our Adv Pratyush and Adv Pahuja can guide you in choosing the right policy and avoiding any legal complications. We, at Sharks of Law teach people about legal issues and foster critical thinking. We provide Legal Consultation. You can find a lawyer here.