All You Need to Know About Driving an Uninsured Car in India
Driving a car in India has become more of a necessity than a luxury.
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Driving a Non-Insured Car in India is Illegal
As per the Motor Vehicle Act,1988, driving a non-insured car in India is illegal. It is essential for every car on Indian roads to have a valid third-party car insurance policy. When you purchase a car, the car company offers a mandatory insurance policy that is valid only for one year. As soon as it expires, an owner is required to renew his car insurance. If not renewed on time, it becomes illegal resulting in a heavy penalty or imprisonment of up to 3 months.
Therefore, one must purchase a third-party insurance plan not only to protect his car against major losses but also from legal consequences that may arise otherwise.
The Necessity of Third-party Car Insurance
According to the Motor Vehicles Act, 1988, every car owner must have at least a valid third-party insurance policy. A third party car insurance is mandatory insurance that all car owners must take while purchasing a new car. This type of insurance protects the car insurance owner against any type of third-party liability arising because of the insured during a car accident. This plan compensates against injury, death, disability, or property damage to any third party.
Third-party insurance only covers a car owner against the liabilities of a third party. It excludes covering his own damages. In such cases, a car owner can purchase comprehensive car insurance that offers coverage against the losses of his damages along with the third party’s damage.
Irrespective of which insurance policy a car owner purchases, it is important to renew it before its expiry date which is mostly a year, else he/she may face heavy fines and other legal consequences.
Consequences of Driving a Car without Insurance
Driving an uninsured car cannot only result in legal consequences but can hamper the safety of the car and the driver. Thus, it is a responsibility of a car owner to get his vehicle insurance renewed once it has expired.
Moreover, having car insurance can provide financial assistance to you and your car in case of vehicle theft, accidents or other damages to the insured vehicle or third party or their property.
But, if you do not purchase a car insurance policy or renew the old one before the expiry date, you can face consequences as mentioned below:
1. Heavy Fines and Penalties
Not having car insurance in India is considered illegal and is subject to heavy fines and penalties. According to the Motor Vehicle Act, 2019, a person has to pay fines or face imprisonment as follows:
- Pay a fine of INR 2000, if caught uninsured for the first time.
- Pay a fine of INR 4,000 and/or face imprisonment up to 3 months if caught without insurance for the second time.
2. Paying Third Party Liability
In the case of an uninsured car, if your car hits a third party or his property, you may have to incur third-party damages from your pocket. This is referred to as third-party liability. In absence of a valid insurance cover, you will have to cover all the losses which may be very high if the third party involved dies.
Thus, having third party car insurance will safeguard the car owner from any type of legal formalities in case of injury, death of third party or damage to their property.
3. Losses for own Damage
Apart from paying for the third party’s damages, you may end up paying for your damage as well. In case you have not renewed your car insurance, and meet with an accident or damage your car, you will be required to incur all the losses by yourself.
A comprehensive car insurance policy covers third-party liabilities as well as damages caused to your car such as repairs, collisions, theft, and more. In case of not having such an insurance policy, you may lose this right and end up incurring heavy losses.
4. Legal Proceedings or Punishment
Besides incurring huge financial losses, you may also face legal proceedings in the case of a non-insured car. For instance, if you encounter a third-party loss, they may file a legal complaint against you. Facing a legal proceeding may result in legal expenses and imprisonment as well. This can become more legally complicated if a person driving a car dies during the accident. It can also lead to the suspension of a driver’s license.
Therefore, renewing your car insurance policy can be the best way to get out of such unnecessary complications.
5. Loss of No Claim Bonus
A No Claim Bonus or NCB refers to a reward that car insurance companies offer to their customers when they do not file any claim during the policy tenure. It is given in the form of a discount on their premium when they renew the policy next year. Moreover, NCB keeps on accumulating and increasing every year offering you up to a 50% discount in your subsequent renewal premium.
However, if your car insurance policy is not renewed before the due date you will lose your cumulative No Claim Bonus and end up paying a higher premium whenever you will renew the policy next.
How to Avoid Getting Fined for Driving a Car Without Insurance
Here are a few pointers that you can follow to avoid getting fined for driving a car without insurance in India:
1. Renew your car insurance policy before the expiry date. Having third-party insurance is mandatory for every car owner in India.
2. Make sure to renew car insurance even if you are purchasing a second-hand car.
3. Keep hard copies of documents like your Driving license, Registration Certification (RC) Pollution certificate with you.
4. Store a soft copy of all the above-mentioned documents on your smartphone as well.
Wrapping Up!
Driving a car without a valid insurance plan is illegal in India. The major reason behind this is the financial protection of car owners against unfortunate events like theft, accidents, injury, or even third-party damage. Moreover, if you get caught while driving a car without insurance, you will have to pay fines and in some cases, your license may also get suspended. Therefore, purchasing a car insurance policy is the best option to keep your car and yourself protected against any such uncertainty.
