Is car insurance policy mandatory?
Yes, car insurance is mandatory in India. According to the Motor Vehicles Act of 1988, any vehicle should have a car insurance policy before stepping out on the road. The least that a vehicle owner should be insured with is a third-party liability insurance cover.
However, this cover will only cover the damages caused to the third-party. This is why many vehicle owners prefer to go for comprehensive car insurance policies which cover not only the third-party’s losses but also their own in case of an accident.