LAW AND PRACTICE OF MOTOR INSURANCE IN INDIA
Motor insurance in India is regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and governed by the Motor Vehicles Act, 1988. The law requires all motor vehicles to have valid insurance coverage before they can be driven on public roads.
Types of Motor Insurance in India:
- Third-Party Liability Insurance: This is the minimum required insurance coverage under Indian law. Third-party insurance covers damages and injuries caused to third parties in the event of an accident.
- Comprehensive Insurance: Comprehensive insurance covers damages to the insured vehicle, as well as damages and injuries caused to third parties. This type of insurance also covers theft, fire, and other non-collision related incidents.
Process of Obtaining Motor Insurance:
To obtain motor insurance in India, an individual or business must approach an insurance company licensed by the IRDAI. The insurance company will conduct a risk assessment of the vehicle and provide a quote based on the risk factors involved. The policyholder must pay the premium to purchase the policy.
Claim Process:
In the event of an accident, the policyholder should inform the insurance company immediately. The insurance company will then assign a surveyor to assess the damages and provide an estimate for repairs. The policyholder must submit the necessary documents to the insurance company, such as the police report, a copy of the driving license, and the vehicle registration certificate. Once the claim is approved, the insurance company will settle the claim amount with the policyholder.
Penalties for Non-Compliance:
Driving without valid insurance coverage is a punishable offense under Indian law. The penalty for non-compliance can range from a fine of INR 1,000 to INR 2,000 for the first offense, and imprisonment for up to three months for subsequent offenses. In addition to this, the vehicle owner may be liable to pay damages to third parties involved in the accident.
Conclusion:
Motor insurance is an essential requirement for vehicle owners in India. It provides financial protection against damages and injuries caused to third parties and the insured vehicle. It is important to comply with the legal requirements and obtain valid insurance coverage to avoid penalties and financial liabilities.
