ECONOMICS
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -In India, as per the Motor Vehicles Act, it is mandatory that all vehicles that operate in any public space must have a motor vehicle insurance cover. Policyholders must have at least ‘third party liability’ motor insurance cover even when opting for the basic insurance plans.
Detailed explanation-2: -As per law, it is mandatory for car owners to buy car insurance for their vehicles plying on the Indian roads. Car insurance fulfils vehicle owner’s legal liability arising due to bodily injury/ loss or damage caused to third-party/ property.
Detailed explanation-3: -Driving without a car insurance policy is illegal as per the Motor Vehicles Act, 1998. Third-Party Liability Insurance is mandatory for all motor vehicles to drive legally in India.
Detailed explanation-4: -Compulsory insurance is insurance that individuals, businesses, or other entities are required by law to have in force. Compulsory insurance usually covers perils that carry heavy financial costs.
Detailed explanation-5: -The answer is very simple. You might not know but as per law, having car insurance is mandatory. Driving around without valid car insurance is illegal in India.