Published on September 25th, 2021 | by Bibhuranjan0
A List of Consequences of Driving Without Car Insurance
As per the Motor Vehicle Act, 2019, it is illegal to drive without an insurance policy. Hence, to avoid penalties, it is recommended to opt for car insurance as soon as you buy a car. Else, it is also a smart move to renew your existing four-wheeler insurance before expiry.
Opting for car insurance will not only secure your own car damage expenses but also damages made to third-party properties (depending on the type of cover you choose).
That said, as per a 2017 General Insurance Council of India report, about 60% of the vehicles on Indian roads are uninsured.
So, what are the consequences of driving without car insurance? Here’s a complete list for your convenience.
Consequences of Driving Without a Car Insurance
Brace Yourself for fines
Before the Motor Vehicle Act 2019, the imposed fine for not having a car insurance cover was ₹1000/- and/or imprisonment of up to 3 months. But, after this act, the fine increased to ₹2000/- and/or maximum imprisonment up to 3 months for a first time offence.
But, if you continue doing so, the second time fine will be Rs.4000/- and/or imprisonment up to 3 months.
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Pay for Your Own Damages
One of the primary perks of owning four wheeler insurance is that you don’t need to pay for the damages. But, in case you come across unfortunate damage, you have to pay it all on your own. So, considering the high charge of your four wheeler repairing, get ready to shell some huge amount from your bank.
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Pay for Damages Caused to Third Party or Property
Suppose, in a mishap, you unintentionally damaged others property. If you have existing car insurance, that part is covered by the policy. But, if not, you are liable to pay for the damages incurred. Hence, to save money in any unfortunate accident or mishap, you should buy insurance beforehand.
Loss of No-Claim Bonus (NCB)
Apart from all the financial complications, you will also lose NCB in insurance. This NCB is a discount that car insurance providers give to the owners if you renew the insurance before its expiration. So, you haven’t claimed anything on your existing plan, you are eligible for NCB, and this increases over the years. But, once your policy lapses, you lose your NCB.
So, if your car insurance expires and you do not renew it, besides the penalties and fines, you also lose the No Claim Bonus.
If you are driving without a car insurance, you might get into legal complications too. You will be fined, might get a challan, and also might be imprisoned. So, to avoid such complications, it is best to have car insurance in place.
Hence, opting for a car insurance policy is a smart choice to avoid all the financial and legal complications. Furthermore, a plan will cover the damage costs that might be levied upon you.
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