The Motor Vehicle Act specifies the rules and regulations regarding driving in India. It is mandatory for all drivers and vehicle owners to own motor vehicle insurance. The basic motor insurance policy must cover the minimum amount of third-party liability coverage to provide for other people involved in accidents or mishaps.
The primary reason to buy a motor vehicle insurance policy is to eliminate the expense that occurs after accidents. In India, the population is rising unruly, and the number of vehicles is also on the rise. To protect against the threats that arise on the road, vehicle insurance is the best solution.
After the amendment in 1988, it is essential to carry various provisions like driver’s license, vehicle registration document, permits, liability coverage, insurance cover, etc., on the road. Failure to fulfil these obligations will lead to fines and penalties worth INR 500 to 25,000 with additional penalties that involve ceasing your documents.