What are the four mandatory insurances for vehicles?
2 Answers
There are four mandatory insurances for vehicles: 1. Compulsory Traffic Accident Liability Insurance (CTPL): CTPL is a compulsory insurance mandated by the state, where the insurance company compensates for personal injuries, deaths, and property losses of victims caused by road traffic accidents involving the insured vehicle within the liability limits, excluding the driver and passengers of the insured vehicle. Vehicle owners must purchase CTPL; without it, they are not allowed on the road. If caught by traffic police without CTPL, the vehicle will be impounded, and the owner will be fined double the premium and must purchase it immediately to resume driving. 2. Vehicle Damage Insurance: This insurance covers damages to the insured vehicle caused by accidents when driven by the insured or an authorized driver, with the insurance company compensating within reasonable limits. It's important to note that this insurance does not cover theft, robbery, standalone glass breakage, or standalone wheel damage. Therefore, not all vehicle damages will be compensated by the insurance company after an accident. 3. Third-Party Liability Insurance: This insurance supplements CTPL, mainly covering personal injuries, deaths, and property losses of third parties in traffic accidents. Third parties refer to anything other than the insured vehicle, including other vehicles, non-motor vehicles, people, animals, and road traffic facilities. 4. No-Deductible Insurance: In the event of a traffic accident, unless the vehicle owner is not at fault, most vehicle insurances have a certain deductible rate. The higher the liability, the higher the deductible rate, requiring the owner to pay out of pocket. Purchasing no-deductible insurance transfers this cost to the insurance company, which then provides full compensation, making it a highly practical and recommended insurance. Apart from these four mandatory insurances, other insurances can be purchased as needed, such as water damage insurance for owners living in rainy and flood-prone areas, or spontaneous combustion loss insurance for vehicles older than five years.
When it comes to car insurance, I learned my lesson the hard way when I first bought my car. Among the four must-have insurances, compulsory traffic insurance (CTI) tops the list—it's illegal to drive without it, and it covers medical expenses if you injure someone in an accident. The second essential is vehicle damage insurance; repairs can cost a fortune, like when I was rear-ended last time—the repair bill ran over ten grand, fully covered by this policy. Third-party liability insurance is absolutely critical, offering high coverage to prevent bankruptcy from compensating others' losses—my neighbor went broke after hitting a luxury car without this coverage. Lastly, theft insurance is a must if you park in sketchy areas, protecting against car theft. These aren't wasted money but peace-of-mind safeguards. I recommend going for full coverage plus regular policy reviews to avoid claim hassles. Remember, driving risks are high daily—skimping on insurance could lead to massive losses. Read policy terms carefully, especially deductibles affecting payout speed.
