Even though India witnessed a slowdown in economic activity in 2020 due to several reasons, both the four-wheeler and two-wheeler market achieved a sequential improvement in sales. According to data, there has been a substantial increase in the overall automobiles production, where around 26.36 million vehicles were manufactured and over 20.1 million vehicles were sold in FY20. Amidst the boosting demand in the Indian automobile industry, the growing awareness for motor insurance has also been observed in the last couple of years.
IRDAI data revealed that motor insurance premiums registered a significant growth where car owners were more inclined towards long-term insurance policies to utilise higher no claim bonus, and other benefits. Even though insurance aggregators are coming up with affordable plans and fast claim facilities, some vehicle owners are still unaware of the benefits of a motor insurance policy. In order to enlighten them on the utility of these policies, a few reasons have been mentioned below.
Reasons to opt for a four-wheeler insurance policy
As per the Motor Vehicles Act, 1988, driving a motor vehicle without insurance is considered as a punishable offence, which is why individuals are bound to get their vehicle insured. Also, looking at the increasing cases of road accidents, buying a motor insurance policy seems appropriate to handle the unexpected expenses. If you are still sceptical about it, consider going through the following list of benefits these policies offer.
- Reduces your liability
It helps you to handle third party liabilities which arise out when another person’s property gets damaged or the person gets injured. Under the TPL or third party liability policy, it is mandatory to help out the other person, suffering from the accident and pay for the treatment or additional expenses, which result from such incidents. Instead of shelling out all these expenses from your pocket, consider opting for such third party motor insurance plans to get rid of the liabilities.
- It offers financial coverage for your hospitalisation
Considering the severity of road accidents, motor insurance aggregators have made sure that policyholders get monetary coverage for the hospitalisation and other related charges during such situations. From treatment costs to medication expenses, insurers handle them once you submit a claim request and necessary documents.
- Offers financial compensation after policyholder’s demise
In case of such unfortunate outcomes, the family gets monetary assistance under the motor insurance policy. Often, it gets challenging to bear all the regular expenses when the sole income earner in a household passes away. In order to help the family during those difficult times, it is advisable to invest in a vehicle insurance plan that can support them in your absence.
- Less expensive when purchased online
Even though most of the insurance aggregators are focusing on launching affordable insurance plans in order to attain more profits, some of these policies seem expensive for the middle-class population. However, an online motor insurance policy is moderately cheaper than the regular ones since insurance aggregators have lower operating costs in this case.
Apart from saving money on your insurance, you can also utilise its other benefits like fast renewal of the policy, paying premiums without any paperwork, etc. Additionally, the insurance holder can also apply for the no claim bonus using the online system, which is relatively faster than offline procedures.
Apart from the utility part of a motor insurance policy, individuals should also pay heed to the eligibility criteria set by the insurers. In order to maximise these benefits, make sure to keep all the documents handy so that you can easily raise a claim during emergency situations. Some of these plans also come with additional features like road side assistance, easy inspection and service at your preferred garages, etc. Therefore, it is wise to research properly before choosing the plan.
