Are you thinking about buying auto insurance in India?
What are your reasons that you need a car insurance provider India, besides being required by law to carry Third Party Liability (ICICI Lombard Insurance)?
Like most people, you probably want to lower your risk of loss if you should happen to be in an accident or have your vehicle stolen or vandalized.
That's a really good idea, particularly if you can't afford to replace your car if it is completely destroyed without warning.
Let's begin by first describing the way the auto insurance providers in
India work, and then discussing what insurance can do for you.
Unlike many other countries, insurance in India is primarily a government operated industry. While the Indian government has recently allowed outside companies into the auto insurance India industry, we find that these companies are not doing as well as their nationalized counterparts.
Why is car insurance in India important?
Let us consider this overly simplified example: You have a car. You know what you paid for it and about what it is worth to you. You also know, statistically, how much an accident is going to cost you.
You may then decide you are willing and able to pay 20% of the cost to replace the vehicle as well as the amount of the cost of an accident; We often call this amount the risk that we are willing to accept. This is normally represented as a deductible. Though it should be noted that in India, the deductible amounts are mandated by law.
Once you have determined these amounts, you can then approach an insurance provider to help you in sharing the remaining risk.
This provides the core logic as to why you should consider buying insurance beyond what is simply required by law. How much risk are you willing and able to accept? How much do you wish to share with others?
If you find yourself in a position that you do not have enough insurance, you can end up paying a lot more for your damages than you can realistically afford. This is what you need to think about when purchasing your Third Party Liability.
Living in a region of the United States that requires Third Party Liability, which is called financial responsibility in the region in which I live, does not begin to cover the true costs of a loss. As such, I choose to purchase additional insurance which provides additional protection should I ever be involved in an accident (called a loss - as I have lost the use of my vehicle).
Insurance in India, like many states, requires its citizens to protect themselves and others through the use of auto insurance. We also must realize that such a requirement does not necessarily guarantee that everyone will have such coverage. You should contact your local Third Party Liability provider to discuss this concern as well as any local legal requirements.
~ Article submitted by guest contributor J. Rockwood
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