A contractual agreement between two parties i.e.

between you and the insurance company

that promises to protect you against financial loss is an Insurance contract. The party seeking
insurance is known as the insured & the insurance company providing insurance is known as
Insurer. In the contract of insurance, one party agrees to indemnify a loss that would be
sustained by another party. That means in accordance with you paying the premium, the
insurance company agrees to compensate the losses as mentioned in the signed contract.
Getting insurance is the smart choice. It helps the insured to get maximum benefits available
out of a risk.
CAR INSURANCE:
Car insurance comes with a lot of benefits. It protects you from an uncertain loss arising out
of a risk that comes with everything around in the surroundings. There are several insurances
available for your car. So picking the right one that benefits you is a crucial decision. Auto
insurance provides coverage for
 Proprietary claim: Damage to your vehicle or theft.
 Liability: Responsibility towards others for property damage or injury to the body.
 Health benefits: Cost for treating the injuries.
Again all of the benefits to the damages depend on the provisions or clauses your agreement
states. Therefore, buying car insurance should be given importance.
WHY CAR INSURANCE?
As insurance is a legally binding contract, its benefits also can be acquired once the property
is insured.
According to the motor vehicle Act, third-party insurance is an essential purchase, whether
you buy a second-hand car or a new vehicle. It is not only for financial aid but it's protection
against legal liabilities towards the third party.
Third-party insurance provides protection & compensation in case there is any bodily injury
or even death.
According to the Insurance Regulatory and Development Authority Act, 1999 (IRDA),
driving around without Insurance is considered illegal in India.
BENEFITS OF CAR INSURANCE:
Before investing in a car insurance plan, it is important to understand the benefits and
features of the policy. The basic benefits provided by an insurance policy are as follows:
 The insurer pays the compensatory damages for the repairs, in case an unforeseen
accident happens. The repayment amount is a percentage of aggregate repair expense
and is liable towards the insurance policy terms.
 It provides personal accident insurance to the owner or the driver, in case of
permanent total disability or unfortunate death. (Insured should have only one
insurance against any property or individual. If the insured has life insurance, they
will not be entitled to benefit of permanent total disability)
 The Insurance policy may also decide upon extra coverage such as loss of use,
downtime insurance, zero depreciation guarantee, no claim rewards, etc.
 No Claim Bonus is offered in car insurance at the time of renewal if there is no claim
during the previous policy period. It is a no-claim offered to parties who had not
claimed in the previous policy period.
These are some of the general benefits provided under insurance.
CONCLUSION:
The main focus of car insurance in India is that it helps you to avoid financial loss and
protects you against unanticipated risks. Life is a beautiful gift from God. The protection is
not only enjoyed by the insured but your families are also benefited from the same. Choosing
the right policy also plays an important role. Stay safe, Stay Protected!!