Why Insurance Is Important For Vehicles In India. Irdai (insurance regulatory and development authority of india) policy states that the maximum declared value for your vehicle can be 95% of its former showroom price. Motor vehicle insurance is mandatory in india for a number of reasons.
There are times when certain acts of nature may occur such as a hail storm or a falling tree that may cause damage to an automobile and it would cost too much money out of pocket to fix these things. According to sec 146 of the motor vehicles act, 1988, it is imperative that you purchase motor insurance prior to taking your vehicle out on the roads. It also handles the financial liabilities incurred against damage caused to.