What does the Mo­tor Ve­hi­cles Act say?

Consumer Voice - - Car Insurance -

Chap­ter 11 (Sec­tion 145 to Sec­tion 164) of The Mo­tor Ve­hi­cles Act, 1988, (as amended up to date) pro­vides for com­pul­sory third-party in­sur­ance (which is re­quired to be taken by ev­ery ve­hi­cle owner) for cov­er­ing third-party li­a­bil­ity (with­out which the newly pur­chased car would not be de­liv­ered to you from the show­room). How­ever, the Act does not spec­ify cov­er­ing the car with ad­di­tional in­sur­ance benefits or go­ing for a com­pre­hen­sive pack­age pol­icy – th­ese have been made op­tional and are at the dis­cre­tion of the car owner. Many ve­hi­cle own­ers still have the wrong no­tion that one need to there­fore cover only third­party li­a­bil­ity by pay­ing cheap pre­mium. Since trans­port is a State sub­ject, each State (through the State Trans­port Depart­ment) has no­ti­fied Mo­tor Ve­hi­cle Rules that are ap­pli­ca­ble to those cars which are reg­is­tered with the re­spec­tive re­gional trans­port author­ity (RTA) of that State. So the State Rules are to be read along with Mo­tor Ve­hi­cles Act pro­vi­sions for guid­ance.

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