ECONOMICS
SAVING AND INVESTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
You will have to pay a lot if you get into an accident
|
|
|
Your car payments will be higher
|
|
|
If you hurt someone else in an accident, you will have to pay for their injuries out of pocket
|
|
|
You will have to pay for a new car if you total yours
|
Detailed explanation-1: -Legal Penalties for not having third party liability insurance. If you are caught driving without a valid insurance policy, traffic police may impose a heavy fine or imprisonment up to 3 months as per motor vehicle act.
Detailed explanation-2: -Penalty for Driving without a Motor Insurance According to Indian law, a fine of Rs. 2, 000 will be incurred and imprisonment of up to three months. As per the old provision, Rs. 1, 000 was charged for driving without insurance.
Detailed explanation-3: -Generally, if you have not claimed your car insurance in the previous year, you’ll get a discount of 20% on your next year’s premium. This discount is known as ‘no claim bonus’ or NCB. Every car insurance premium has two primary portions: a) own damage premium and b) third party premium.
Detailed explanation-4: -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.