India is a huge country with lots of traffic, so to minimize the risk of an accident and save time in the process, it's a good idea to have proper coverage. This article breaks down what auto insurance is required by law in India, as well as how long you need to stay on your parents' health insurance plan.
You've probably seen that there are many types of vehicle insurance available today. But have you asked yourself which is required by law in India? This article will provide an overview of what kind of insurance is required on a legal basis in India and the various auto insurance coverages available to meet those needs.
What types of car insurance are required in India?
In India, there are a few types of car insurance that are required by law. The most common type of car insurance is compulsory third-party insurance. This means that if you are involved in an accident and the other driver's insurance doesn't cover your car, your own insurance company is obligated to cover the cost of the damages. You may also be required to have comprehensive and collision coverage, depending on your province or state.
How much does auto insurance cost in India?
In India, a car is more than just a vehicle for transport. It is also a status symbol in urban areas. The importance of having a car often outweighs the need for insurance, but this isn't always the case. In some states, it is even required by law that drivers have auto-insurance before they can drive on the roads there!
There is no single answer to this question as the cost of auto insurance can vary significantly depending on the location or province in India, as well as the type of vehicle being insured. However, based on our research, we estimate that the average price of auto insurance in India is around Rs 2,000 ($30) per month.
If you're a driver in India, it's important to know that you're legally required to carry minimum liability insurance coverage of Rs 25 lakh ($3 million) for each person injured. This minimum coverage is also applicable if you're driving a commercial vehicle. If you don't have this coverage, your car insurance company may not be able to pay out on any claims made against you.
In addition, certain provinces in India have their own mandatory safety measures that drivers must adhere to. For example, in Punjab and Haryana, all drivers must wear a helmet when riding a motorcycle. And in Himachal Pradesh, all drivers must carry an emergency roadside assistance plan.
So whether you're driving a car or riding a bike in India, it's important to make sure that you have adequate insurance coverage to protect yourself and your loved ones
How to compare and find the best coverage for your needs
Vehicle insurance in India is required by law and the minimum coverage required is Rs 25,000 for personal injury and Rs 1 lakh for property damage. To find the best coverage for your needs, you can compare rates and policies from several insurers. You can also use online tools to calculate your coverage and compare quotes.
However, the type of coverage you need and the amount you pay will vary depending on your location and vehicle.
To compare coverages and find the best deal for your needs, use our handy guide below.
There are three types of auto insurance that are common in India: personal accident insurance (PAI), third-party liability insurance (TPL), and comprehensive insurance. PAI covers you if you are at fault in an accident, while TPL covers someone else who is at fault. Comprehensive insurance provides coverage for accidents and damage to your car, regardless of who was at fault.
The amount of coverage you need will depend on your vehicle and location. For example, in Mumbai, TPL will usually provide coverage for up to Rs 1 lakh (USD$155), while PAI will cover up to Rs 2 lakh (USD$310). In other cities, the amounts may be different.
To find the best deal for your needs, compare quotes from multiple insurers. You can also use various online tools and Compare Insurance Rates tool to get an instant quote for a selection of coverages.
Top Insurance Companies in India
Auto insurance is mandatory in India for all drivers, regardless of the vehicle’s age or license. The minimum liability insurance required is ₹50,000 (US$740), and your policy must include third-party liability coverage. Here are the five top auto insurance companies in India:
- ICICI Lombard
- AIG General Insurance
- HDFC General Insurance
- Royal Sundaram Insurer
- Tata AIA General Insurance
What Is the Difference Between a Policy of Personal Accident Insurance and Motor Vehicle Insurance?
Motor vehicle insurance is required by law in India for all drivers operating a motor vehicle on public roads, including motorcycles. It covers losses due to theft, damage to the vehicle itself, and liability for third-party injury or property damage. A policy of personal accident insurance may also be required by state regulations. This type of policy typically covers injuries or death caused by an accident while driving your own car, motorcycle, or bicycle. It usually doesn’t cover losses caused by accidents while driving other people’s cars or motorcycles.
Policy details and requirements will vary from state to state. In general, however, policies of personal accident insurance typically have lower limits than motor vehicle insurance policies and don’t cover some types of losses (for example, loss of use due to a collision). Furthermore, personal accident policies are not automatically renewable; you must purchase a new policy each time you renew your driver’s license.
Conclusion
In India, no matter what your driving record or credit score may be, you will need to purchase auto insurance before hitting the road. The minimum liability coverage required by law in India is ₹100 lakh (approximately $1 million), which is more than many people will likely ever need to spend on car repairs or insurance claims.
If you have any questions about what type of auto insurance is required in India or whether you meet the eligibility requirements, speak with your agent or consult a qualified insurance company.