What Does Compulsory Traffic Insurance for Automobiles Include?
2 Answers
It consists of seven components: initial costs, indirect claim expenses, insurance guarantee fund, social assistance fund for road traffic accidents, management fees, transfer fees, and reinsurance costs. Compulsory motor vehicle insurance is designed to protect non-vehicle occupants and the insured. More relevant information is as follows: 1. Insurance can be purchased from different companies: When purchasing compulsory traffic insurance for motor vehicles, the insurance company is not a determining factor. Changing insurance companies does not affect the discounts or benefits for purchasing compulsory traffic insurance. What affects insurance discounts and benefits is the number of claims made by the vehicle in the previous year. 2. Definition of compulsory traffic insurance for automobiles: It is a type of insurance that protects non-vehicle occupants and the policyholder in the event of a traffic accident. It is a mandatory insurance that covers the personal and property losses of others after a traffic accident. The insurance is compulsory and must be purchased as long as the vehicle is registered and in use.
Compulsory Traffic Insurance (CTI) is the basic coverage you must purchase as a driver. It covers compensation for victims in case of an accident. Simply put, if you injure someone, it pays for medical expenses and subsequent compensation, including death or disability pensions. If you damage someone else's vehicle or property, it also covers repair or compensation costs. However, don’t expect it to cover your own losses, like vehicle damage or personal injuries—those require commercial insurance. The government mandates this insurance to reduce disputes and ensure victims receive timely compensation. A friend of mine once had a minor rear-end collision where the other car’s bumper was damaged, and CTI easily covered the repair costs. I recommend renewing it on time to avoid fines and ensure uninterrupted driving.
