Knowledge Centre

Road Accidents and Need for Motor Insurance

Along with the utility and convenience, motor vehicles also bring risks – minor as well as serious ones – to their owners. While driving on roads, there can be instances where the motor vehicle can get into an accident, causing injuries / death to the owner or driver of the vehicle, co-passengers, injuries / death to people walking on the road or damage to third party property.

Knowing about driving safely is as important as owning a personal car. Given the financial risks that a vehicle exposes you to, it is recommended that you, as an owner of the vehicle, get an adequate Motor insurance cover that protects you from any financial liability that may arise out of a mishap involving your car.

World over, road accidents are major cause of concern – and more so in India. The statistics on road accidents and mishaps in India are astonishing. It is shocking to know that more than 10 lakh people have lost their lives to road accidents in the last 10 years India. While India only has about 1 % of the world’s automobiles, the country has the dubious distinction of leading the world in road crash fatalities contributing 10% of total global road deaths. according to the statistics compiled by Save LIFE Foundation¹, an innovative non-governmental organization focused on improving road safety and emergency care across India through high-impact and strategic interventions.

According to the Save Life Foundation statistics, as many as a quarter (24.9%) of all road accidents that took place on Indian roads in 2013 involved two-wheeler, followed by Trucks/Lorries, which accounted for 17.5% of the total accidents. Other involvement of other type of vehicles such as Car (10.8%), Bus (8.8%), Jeep (6.3%), Tempo/Vans (5.9%), Three-wheeler (4.7%) and Bicycles (1.9%) also contribute significantly to the overall occurrence of road accidents in India. While 10.3% accidents are caused due to the other type of vehicles, as many as 9% road accidents are caused to pedestrians.

Road accidents have serious financial implications. The Save LIFE Foundation statistics estimate the annual loss of 3.3% to the GDP due to road accidents (For perspective, India’s GDP is estimated to be $2.1 trillion in 2014-15). For individuals, the cost of road accidents involves injuries and damages to the driver and third parties (individuals as well as property). Whether it is the fault of the driver or not, as owner / driver of the vehicle, one could be liable for any damage occurring to a third party injured in the accident. Liabilities arising out of accidental deaths caused by your vehicle can be unlimited.

Under the Motor Vehicles Act, 1988, it is mandatory to have third-party liability insurance for the vehicle of any type – a car, two-wheeler or any commercial vehicle. Typically, vehicle owners get somewhat complacent about renewing their Motor Insurance after a couple of claim-free years. Some drivers consider their good driving skills as an excuse for not bothering with Motor Insurance. However, the nature of accidents and mishaps is such that they happened unannounced, to anyone, anywhere.

Despite best credentials as a safe driver, having a Motor Insurance is a must for every vehicle owner because of the severity of roads accidents. The heavy traffic can result in accidents with no fault of the driver. Even a seemingly minor damage to the vehicle or slight injury may involve a high cost to get it fixed. With medical costs becoming more and more expensive, even a small treatment can mean a big expense. A collision with another vehicle or severe injury to fellow passengers will be a huge emotional and physical strain. Support in the form of a financial aid can bring down the burden of the problem. With Two-Wheeler Insurance, one can pay for these expenses.

You can ensure the protection against any liability arising out of a road accident involving your vehicle with a comprehensive Motor Insurance plan. A comprehensive Motor Insurance is designed to provide optimum coverage at reasonable cost.

What is covered under a standard Comprehensive Motor Insurance policy?

  • Own Damage to the Insured vehicle caused by:

  • Accident by External Means

  • Fire, Explosion, Self Ignition and Lightning

  • Transit by Road, Rail, Inland Waterway, Air, Lift

  • Burglary, House breaking or Theft

  • Terrorism, Riots, Strikes or Malicious Acts

  • Earthquake, Flood, Storm, Landslide, Rock slide

  • Third Party Liability

  • Injury or Death of Third Party

  • Property Damage (up to a certain limit)

  • Personal Accident

  • Injury or Death of Third Party

Comprehensive Motor Insurance also covers reimbursement of Towing Charges, up to a certain pre-decided amount for cars.

You can also opt for the Motor Insurance Add-on plan which enhances your coverage for better protection, in addition to your standard Motor Insurance policy. For additional convenience, you can buy as well as renew a Comprehensive Motor Insurance online. Most insurance providers offer facility to purchase / renew the policies online.

To know more about car insurance plans and its benefits click here

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