Why do I need insurance?
This blog post explains why is insurance important.
Ah, I do need insurance at all, Ketaki said to her dad. After all, I am young, healthy and earning decently, so why I should I go in for insurance.
Mr. Mathur heard her patiently and then explained why Ketaki needed an insurance policy.
There are three main reasons why insurance is important.
1. If you have a motor vehicle then it is mandatory to have an auto insurance policy. According to the Motor Vehicles Act, any person who owns and drives a motorized vehicle is required by law to have an auto- insurance policy.
Motor Vehicle Act- http://chdtransport.gov.in/Forms/MVA1988.pdf
Since there are two kinds of auto-insurance plans, you may like to know which one is better for you.
The first plan is Third Party Liability Plan. This one takes care of the damages to the life and property of the third party in the event of an accident involving your vehicle and him/ her. Suppose, you are driving your car and unfortunately, it collides with a person on the road. This person suffers injuries, or even dies, so how does this policy come into play?
In this case, your policy provides for the compensation to this injured or dead man for his injuries. In case your vehicle collides with his, then the affected person can claim for damages and that cost will have to be borne by your policy.
Third Party Liability Plan also takes care of the permanent disability of the driver or the owner of the insured vehicle. So if you own a car or a motorized vehicle, and drive it regularly then this policy will take care of your permanent disability expenses too.
Having a Third Party Insurance is mandatory for car, bike, and scooter owners. If you don't have it, then you might be prosecuted by the law enforcement agencies. It is an offense to drive on the Indian roads without having this policy.
There is another auto insurance plan- Comprehensive Car Insurance Plan, but we are not discussing that here.
2. There is another reason why you should have insurance- securing the feature of your near and dear ones in the event of your death. This kind of insurance is called life insurance. We have dealt with life insurance in one of the articles in this blog.
Having life insurance also helps you in saving on your tax liabilities. There are some sections in the Income Tax Act that allow you to claim rebates on your salary if you have life insurance. Who wouldn't want to save on his tax liabilities?
3. Another important reason to have insurance is to save on your hospitalization and medical expenses. We all know how much expensive it is to be admitted into a hospital. But if we have medical insurance ( mediclaim), then our hospital expenses will be borne by the insurer. Therefore, save your money by buying medical insurance.
So here we are on why having insurance is a necessity.
Do you have any questions on insurance? Please leave them in the box below.
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Ah, I do need insurance at all, Ketaki said to her dad. After all, I am young, healthy and earning decently, so why I should I go in for insurance.
Mr. Mathur heard her patiently and then explained why Ketaki needed an insurance policy.
Also, Read- How to buy car insurance online
There are three main reasons why insurance is important.
1. If you have a motor vehicle then it is mandatory to have an auto insurance policy. According to the Motor Vehicles Act, any person who owns and drives a motorized vehicle is required by law to have an auto- insurance policy.
Motor Vehicle Act- http://chdtransport.gov.in/Forms/MVA1988.pdf
Since there are two kinds of auto-insurance plans, you may like to know which one is better for you.
The first plan is Third Party Liability Plan. This one takes care of the damages to the life and property of the third party in the event of an accident involving your vehicle and him/ her. Suppose, you are driving your car and unfortunately, it collides with a person on the road. This person suffers injuries, or even dies, so how does this policy come into play?
In this case, your policy provides for the compensation to this injured or dead man for his injuries. In case your vehicle collides with his, then the affected person can claim for damages and that cost will have to be borne by your policy.
Third Party Liability Plan also takes care of the permanent disability of the driver or the owner of the insured vehicle. So if you own a car or a motorized vehicle, and drive it regularly then this policy will take care of your permanent disability expenses too.
Having a Third Party Insurance is mandatory for car, bike, and scooter owners. If you don't have it, then you might be prosecuted by the law enforcement agencies. It is an offense to drive on the Indian roads without having this policy.
There is another auto insurance plan- Comprehensive Car Insurance Plan, but we are not discussing that here.
2. There is another reason why you should have insurance- securing the feature of your near and dear ones in the event of your death. This kind of insurance is called life insurance. We have dealt with life insurance in one of the articles in this blog.
Having life insurance also helps you in saving on your tax liabilities. There are some sections in the Income Tax Act that allow you to claim rebates on your salary if you have life insurance. Who wouldn't want to save on his tax liabilities?
3. Another important reason to have insurance is to save on your hospitalization and medical expenses. We all know how much expensive it is to be admitted into a hospital. But if we have medical insurance ( mediclaim), then our hospital expenses will be borne by the insurer. Therefore, save your money by buying medical insurance.
So here we are on why having insurance is a necessity.
Do you have any questions on insurance? Please leave them in the box below.
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