How Car Insurance Can Improve Your Health
A person grows and his dreams grow with him. While a child would have wished for a miniature mustang, a financially independent youth will only wish for the real Mustang. However, the story is not that short or simple. While the desire to buy a car or another automobile manifests, the person should be concerned with lot more than just the price of the vehicle. Two other most important category of expenses which should be thought of before buying a car are the maintenance and the insurance of that car you in fact bring home.
For the purpose of maintenance of vehicle, a person only requires to focus on the capabilities of his car and ensure he can optimally use the car to its value. However, the other collateral expense – car insurance is a greater technical nature.
Within the Indian Territory, the law mandates for every vehicle to have a valid and subsisting car insurance along with other necessary documents at all times. Absence of the Registration Certificate, popularly known as RC; Driving License; Pollution under Control Certificate and the car insurance can lead to unnecessary penalization by the authorities who regulate safety and security of vehicles. Thus, car insurance should be secured as soon as possible.
Due to the strictly regulated regime in India wherein the Investment Regulatory and Development Authority, more commonly known as IRDA, oversees all the insurance related reforms. This has resulted in largely uniform rates of premium for car insurance across the country.
The car insurance which the government mandates is known as Third Party Liability Insurance, which is one of the multiple kinds of insurances available to a car-owner. The Third Party Liability Insurance primarily insures the insurer against the damage which is accrued to third party’s property or body in any accident or other unfortunate event. However, this kind of insurance does not protect the person’s own injury or damage, neither it insurers the car itself which may suffer damage during the accident. The Third Party Liability Insurance are valid for a period of one year and no extension is allowed any person under any circumstance what so ever. Thus, a person has to renew his car insurance every year to secure his life and assets which are placed at risk in absence of one.
If, due to unavoidable circumstances, an accident or theft takes places whereby the interests of the third party are compromised, a person can file a Motor Insurance claim can be filed which will allow the person to obtain benefit of the insurance he had signed up for. According to the IRDA regulations and the Motor Vehicles Act, 1988, a specified set of documents are to be produced while filing a claim with a duly filled claims form.
The insurance can be transferred with the sale of the car but it should be remembered that the name of the owner of the vehicle should, at all times, be that on the car insurance document. Otherwise, the car insurance will not be valid under the eyes of law. This process of transfer of insurance and change of the name of the owner of the car is undertaken at the local Regional Transportation Office (RTO) upon the payment of a nominal fee for this purpose.
Thus, unlike the popular perception, a car insurance is not “just another expense” but a very usual instrument to secure and protect you and your loved ones from unfortunate events which threaten your assets – people as well as property which are of interest to you.
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