38 million vehicles in India run without any insurance !!!

mithun · 16th May 2007, 06:03

Quote:

According to the data available, the total vehicles registered in the country are 78 million, of which only 40 million are insured.

According to the law, it is mandatory for all vehicles, except those belonging to the government, to have a third-party liability insurance cover.

Source

According to the Motor Vehicles Act, 1988, it is mandatory for every owner of a vehicle plying on public roads to take an insurance policy to cover the amount, which the owner becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury or damage to property. Also, it is necessary for you to always carry the certificate of insurance in the vehicle as proof.

My question is that how can these vehicles run without any insurance since Indians are typically risk averters ?

In the case of geriatric vehicles which can be moved soon to the graveyard, the owner may not feel the need of comprehensive insurance BUT what about the 3rd party insurance which is compulsory ?

Why car insurance is a must

GTO · 16th May 2007, 12:14

Well, some will always be paisa-wise and pound-foolish. And its not only insurance that they cut on. Just see the amount of vehicles on our road that are poorly maintained, overladen or have inexperienced drivers. They are just asking for trouble.

caliper · 17th May 2007, 17:51

When the number of accidents is compared to the number of cars, the risk of getting in an accident probably seems miniscule to most drivers, so they may actually be making a rational calculation.

After all, there is probably a risk of getting hit by a bomb if you live in Delhi or Bombay, but people still go about their lives without worrying about that.

squarecut · 19th May 2007, 15:30

It is not that difficult to explain. Most of such vehicles are two wheelers and many two wheeler ownrs do not bother to renew their insurance after the first year. When the traffic police checks such vehicle and find them without papers, the owner is let off after he pays a few rupees. It is a win win situation for the vehicle owner ( who pays much less than he would otherwise pay as insurance) as well as the traffic cop.

Moreover, quite a few two wheelers are stolen and resold at a low price. Such vehicles obviously will not have any documentation.

Four wheelers by and large are likely to have insurance,I would like to think.

Surprise · 19th May 2007, 15:52

I guess atleast 80% two-wheelers contribute to that figures. I admit, I dont have an insurance for my two wheeler. Twice took them to the insurance companies to get it renewed ( when i bought it in second hand the insurance got expired). But it took hours for them to come down from the first floor for inspecting the vehicle.

I got frustrated & came back. Never tried even with other insurance companies after that. Though vehicle was used locally in weekends, i aware, its an invitation for trouble.

It struck my mind only after reading this thread. I will ensure that it gets renewed on before next week end

16th May 2007, 12:14	#2
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,546 Thanked: 300,788 Times View My Garage	Well, some will always be paisa-wise and pound-foolish. And its not only insurance that they cut on. Just see the amount of vehicles on our road that are poorly maintained, overladen or have inexperienced drivers. They are just asking for trouble.
	() Thanks

17th May 2007, 17:51	#3
caliper BHPian Join Date: May 2007 Location: India Posts: 160 Thanked: 3 Times	When the number of accidents is compared to the number of cars, the risk of getting in an accident probably seems miniscule to most drivers, so they may actually be making a rational calculation. After all, there is probably a risk of getting hit by a bomb if you live in Delhi or Bombay, but people still go about their lives without worrying about that.
	() Thanks

19th May 2007, 15:30	#4
squarecut BHPian Join Date: Feb 2007 Location: Jabalpur Posts: 87 Thanked: Once	It is not that difficult to explain. Most of such vehicles are two wheelers and many two wheeler ownrs do not bother to renew their insurance after the first year. When the traffic police checks such vehicle and find them without papers, the owner is let off after he pays a few rupees. It is a win win situation for the vehicle owner ( who pays much less than he would otherwise pay as insurance) as well as the traffic cop. Moreover, quite a few two wheelers are stolen and resold at a low price. Such vehicles obviously will not have any documentation. Four wheelers by and large are likely to have insurance,I would like to think.
	() Thanks

19th May 2007, 15:52	#5
Surprise Senior - BHPian Join Date: Feb 2005 Location: Chennai Posts: 2,523 Thanked: 454 Times	I guess atleast 80% two-wheelers contribute to that figures. I admit, I dont have an insurance for my two wheeler. Twice took them to the insurance companies to get it renewed ( when i bought it in second hand the insurance got expired). But it took hours for them to come down from the first floor for inspecting the vehicle. I got frustrated & came back. Never tried even with other insurance companies after that. Though vehicle was used locally in weekends, i aware, its an invitation for trouble. It struck my mind only after reading this thread. I will ensure that it gets renewed on before next week end Last edited by Surprise : 19th May 2007 at 15:54.
	() Thanks