Is buying a car insurance policy mandatory for car loan approval?

As per the Motor Vehicles Act, 1988, any car owner who wishes to drive their car on Indian roads needs to have a third party car insurance policy. Aside from complying with the law, if you are looking for additional protection for your car, you can also purchase a comprehensive car insurance policy. This kind of policy covers the cost of damages that occur due to natural calamities, fire, theft, depreciation, and much more. Comprehensive car insurance plans also allow the benefit of add-ons.

Therefore, if you are buying a car, regardless of whether you are applying for a loan or not, you have to mandatorily buy a car insurance plan.