All of us know that motor insurance or vehicle insurance is mandatory insurance that every vehicle owner must purchase for his / her vehicle running on Indian roads. The purpose of making motor insurance mandatory is to protect vehicle owners against physical damage, natural or man-made calamities along with third-party liabilities if any arising out of insured vehicles. Motor insurance is designed for both private vehicles (two-wheelers and four-wheelers) and commercial vehicles.
Although motor insurance is mandatory in India, quite often, many vehicles remain uninsured and thus accident victims do not get any kind of compensation causing monetary loss and legal hassles. One of the records reveals that more than 50% of the vehicles running on Indian roads are not insured. The main reason for this low penetration of motor insurance is the non-renewal of the policies. People tend to forget or do not give importance to renewing their motor insurance.
Do you know that as per data from state police departments, in 2021 alone, a total number of 4.12 Lakh accidents were reported in India? These accidents claimed 1.5 Lakh lives and caused injuries to 3.8 Lakh individuals. Among the vehicle categories involved in road accidents, two-wheelers accounted for the highest share of the total accidents and fatalities followed by four-wheelers. Looking at these numbers, you would agree that having inadequate or no motor insurance is clearly a big mistake!!
As stated above, the major cause of lesser motor insurance penetration in India is the non-renewal of the policy. This is obvious because, at the time of vehicle purchase or transfer from party A to party B, RTO ensures that the insurance is in place. When the policy expires most vehicle owners do not get a proper renewal notice or they miss or ignore it. Sometimes vehicle owners renew it in a hurry, without even going through the policy features. This can cause dissatisfaction at a later date. It is also seen that most of the time owners are not even aware of the type of policy they possess like only third-party liability or own damage (OD) policy or the comprehensive policy.
There are multiple new-age features that are introduced by many insurance companies both for private and commercial vehicles. It is recommended to discuss all features of the policy with a reputed and knowledgeable advisor instead of purchasing any random policy.
We at Whealthy Souls Advisory maintain the calendar of policy renewals for all our clients and ensure timely renewal of the same. We also educate our clients on the latest, new-age features that may help them depending on their use case.
Although mandatory by law, motor insurance remains the most ignored insurance type!! We need to change this for the betterment and safety of our whole society
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