The Road Transport Ministry have been informed by the insurance industry that the percentage of vehicles which have insurance are alarming and the results are not good for both four-wheelers and two-wheelers.
About 60 percent of two-wheelers and 40 percent of four-wheelers ply on the road without insurance. This alarming rate poses a risk not only for the owners of the vehicles but, even for other road users.
Using your vehicle without insurance is a violation of regulatory norms in India. The insurance companies have supported the transport ministry in levying hefty fines for violators of Rs. 2,000 to Rs. 4,000 with a mandatory provision of third party insurance for all categories of vehicles.
Also, the companies - both public and private - are in favour of provision of capping compensation for road accident victims at Rs. 10 lakh.
The average compensation for road accident victims is about Rs. 6 lakh in nearly 80 percent of the crashes and it takes 4-5 years before the victim receives the money.
Having an insurance for your vehicle not only takes care of your damages but even the other party involved. Also, insurance on your vehicle increases the resale value of your vehicle. Most of all the peace of mind that you and your vehicle is covered in case of any unfortunate incident.