Auto Insurance- Don’t Worry, Drive Happy!!!!!

My vehicle is old and I don’t want to buy insurance any more for the same.

In India car is perceived to be a status symbol which means if you own a car then you receive a lot of respect and acceptance in the society. It is one of the measures of success in Indian Society. These days some of the Car Dealers are providing free car insurance with the purchase of car. But as the machine (car) gets older most of the time, car insurance might be far from the top of your Mind. But there are certain pivotal moments that elevate it to critical importance.  

Now, we Buy the Car, Look at the monthly EMI’s that we are liable to pay each month to own the vehicle but a small mistake or negligence of not having vehicle insurance of your old vehicle may grind down your LIFE. Let us see how?

The Question you have asked is about motor insurance hence the applicable Act is Motor Vehicle Act, 1988. This Act says that

• The insurance of motor vehicles against damage is not compulsory
• Insurance of third party liability is compulsory if the vehicle is used at public places

Here we define public place as any place which is just out of your home. As per Act it is a legal requirement to have third party insurance to drive the vehicle.

This Act further says that the insurance is compulsory for

1. Death or bodily injury of any person including owner 
2. Damage to any property of a third party
3. Death of bodily injury of any passenger of a public service vehicle
4. Liability arising under Workmen’s Compensation Act,1923 in respect of death or bodily injury of Paid driver, Conductor, Workers carried in a goods vehicle

In your case as the vehicle is old hence the Insured’s Declared Value (IDV) will be very less cause year on year depreciation is deducted. So you can retain the risk pertaining to your vehicle. But you must buy the third party liability insurance. Just consult your general insurance advisor he will guide you for that. And stay away from lots of probable legal issues.

You can visit www.myinsureclub.com to buy and compare Vehicle Insurance Online; it will help you to compare the car insurance amongst various insurance companies.

I believe that you realize the importance of car insurance no matter how old it is, get it insured.

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