- Car insurance is mandatory in India because it is a legal requirement under the Motor Vehicles Act, 1988. This law mandates that every motor vehicle that is used or plying on public roads in India must be insured with a minimum of third-party liability insurance.
- The primary reason for making car insurance mandatory in India is to provide financial protection to third parties who may be injured or suffer property damage due to the actions of a vehicle owner.
3. In case of an accident, the insurance company will provide compensation to the third party for any damage or loss caused by the insured vehicle. This helps ensure that victims of accidents are not left with the financial burden of paying for the damages caused by someone else.
4. In addition, car insurance also provides protection to the car owner by covering the cost of repairs or replacement of the insured vehicle in case of theft, accident, or other damages. It also offers personal accident coverage for the owner-driver of the vehicle.
5. Therefore, car insurance is mandatory in India to ensure that every car owner takes responsibility for their actions and protects the interests of third parties who may be affected by their driving.