Which insurance is mandatory in India?

What is car insurance compulsory?

A compulsory excess is the sum that your insurer sets and is non-negotiable. This amount depends upon different factors including your age, the type of claim and your car type. The compulsory excess amount is added to the voluntary excess amount to make your total excess should you make a claim.

Is it compulsory to have comprehensive car insurance?

Every certified vehicle has to be covered by CTP insurance, whereas comprehensive car insurance is optional. CTP insurance only protects you from the personal injury liability that might arise if you injure anyone involved in an accident you caused.

What is TP policy?

Third-party insurance offers protection against damages to the third-party by the insured vehicle. It covers physical injuries, damages to the vehicle, damage to the property, and death. Exclusions. Third-party insurance does not provide any compensation, if: The accident was caused due to drunken driving.

Is 5 years insurance mandatory?

Following a Supreme Court ruling in September 2018, IRDAI has made it mandatory for all new two-wheelers to be issued a 5-year insurance cover. This has been done to ensure that maximum number of two-wheelers remain insured and also to minimise incidents of lapsed, expired policies and uninsured vehicles.

Is 2 wheeler insurance mandatory?

Under the Motor Vehicles Act, the Government of India has made it mandatory for every bike owner to have an insurance policy. ... Policies also cover damage to the bike by natural calamities like floods, earthquake, fire, etc. So, you can make a claim under these circumstances.

What are the 3 main types of insurance?

What are the three types of compulsory insurance?

The three main types of compulsory insurance are the Unemployment Insurance Fund, Compensation for Occupational Injuries and Diseases which is amended as Workers' Compensation and the Road Accident Fund.

What is non compulsory insurance?

Non-compulsory insurance is purchased at the option of the buyer. For example, a consumer can decide to purchase a life insurance policy but is not required to by law.

Why motor insurance is mandatory?

Car insurance is mandatory to help the family of the deceased who might lose their life in a car accident. The compensation under the Motor Tribunals Act was introduced to ease the burden on the families.

Is health insurance mandatory in India?

Is Company Health Insurance Compulsory in India? Yes, medical insurance for employees is compulsory in India post the nation-wide COVID-19 lockdown in 2020. ... When you buy insurance for yourself, it is known as Individual Health Insurance. When you buy insurance for your family, it is known as a Family Health Cover.

Which insurance is compulsory for four wheeler?

Under the Indian Motor Vehicle Act, third-party insurance is mandatory. This type of policy only covers third-party damages and losses.

Is 1st party insurance compulsory?

In case of bodily injuries, death or damage to the third-party property or person, they are entitled to the insurance benefits of the first party. ... Having this insurance cover is a legal requirement, without which any car owner will have to pay a traffic fine or face the legal consequences.

What is TP and OD in insurance?

A motor insurance policy consists of two parts - own damage (OD) cover and third party (TP) liability cover. ... All car and bike owners should buy a car insurance or a two wheeler insurance for their vehicle's safety.

Is own damage insurance mandatory?

It is compulsory according to the Motor Vehicles Act of 1988. This type of insurance provides coverage for the damage to the policyholder's vehicle. It is not compulsory, however, provides greater protection than just third party insurance.

What is full insurance?

A comprehensive car insurance is an extensive motor insurance plan that covers the insured person against both, own damages and any third party liabilities. ... Comprehensive insurance on the other hand provides extensive coverage and offers more services.

What is a PA policy?

Personal Accident insurance or PA insurance is an annual policy which provides compensation in the event of injuries, disability or death caused solely by violent, accidental, external and visible events. ... Hence death or injury due to any illness or disease is not covered by the policy.

What is IDV value?

What is Insured Declared Value (IDV)? The term 'IDV' refers to the maximum claim your insurer will pay if your vehicle is damaged beyond repair or is stolen. Suppose the market value of your car is Rs. 8 lakh when you buy the policy. That means the insurer will disburse a maximum amount of Rs.

What happens if I don't have comprehensive car insurance?

If you don't add comprehensive and collision, your vehicle will have no coverage under your car insurance policy. If you're at fault in an accident, collision coverage is the only way to make a car insurance claim for your vehicle's damage or total loss. Without it, you'll have to pay out of pocket yourself.

What is CTP and comprehensive insurance?

CTP is for people only and does not cover damage to any vehicles, yours or someone else's. Comprehensive covers damage to your vehicle and others' vehicles and property, but does not cover people. ... Other insurers who do not offer CTP or green slip insurance may offer third party property insurance.

What does compulsory 3rd party cover?

Compulsory Third Party (CTP) Insurance, also known as Green Slip in New South Wales, provides cover for people who may be injured or killed in a motor vehicle accident involving your vehicle. This may include the driver of your vehicle, other drivers, passengers, pedestrians, cyclists and motorcyclists.