It was driving to his home in Panjim as usual for Ramesh( name changed) after a wonderful day in business the North Goa district when he suddenly lost control of his car and met with an accident.
His leg was severely injured and he was rushed to nearby hospital after police formalities. His car too got damaged but fortunately, his life was saved.
His cashless health insurance helped in getting the best treatment and car too was towed down to the repair garage. When the garage owner sent an estimate of over Rs 1.5 lakhs for damages, Ramesh turned to his insurance company only to realise that his insurance cover has expired.
In India, Ramesh is not the only one who are missing this motor insurance. There are many who do that even without realising the consequences of not having one.
Today driving is not just a passion or luxury in India. It is has become a necessity. The public transport system in India was never that great. But, good roads, high speed cars and urge to travel at will has considerably urged people in taking resort to driving for personal or professional needs.
The cut-throat competion in every field ensures that people forget to take care of their basic needs- needless to say, Ramesh in the above story missed his insurance.
But guys, missing an insurance has lots of disadvantages. If you are caught driving without insurance, you are eligible to be penalized. This penalty can be as severe as suspension of your driving licence, suspension of your vehicle registration and fine to the tune of Rs 1000 and/or 3 months of imprisonment.
But again, there is more to this personal damage. In the above case, Ramesh had to bear the cost of his car damages. But that is not the end of story- If in an accident, however unintentionally, if damages occur to other people’s life and property,you have to bear the losses that have been incurred.
In insurance terminology, this is called third party liability and your car insurance will always cover this third party liability and can insulate you from the losses incurred.
Imagine if you had no insurance cover and you have to pay heavily for the losses. If there is loss of life in such cases, the damages and liability can be very high. Add to this, the legal complications that arise out of this.
If you see the above consequences, a having a vehicle insurance policy is a social obligation too. No one in our country should take pleasure in driving without a proper insurance. We should not allow our mistakes to be the cause of suffering for other people.
Infact, motor insurance rates in India are probably the lowest in the world. & for those who drive nicely amd keep renewing their insurance before hand, the insurance companies encourage them with a No claim Bonus (NCB – discount in premium paid).
On this day of Holi, why not have a insurance that serves our needs and helps to lead a colourful life. Lets twist the old adage here- it is better to be safe( or Insured) than sorry!!
(Shripad Chhatre is a part time blogger & has rich experience in being an advisor for Insurance and Mutual funds)
