Hyderabad: If the records of the Insurance Information Bureau are anything to go by, only 57.62 per cent of two-wheelers and 25.95 per cent of private cars have availed motor vehicle insurance of various types, for their vehicles.
While it is common knowledge that insurance is mandatory for all vehicle owners under the Motor Vehicles Act of 1988, many motorists do not consider it important after two years, say automobile dealers. ‘All vehicles are to be covered under an appropriate insurance policy before they can ply on the road’ says the Motor Vehicles Act of 1988. The minimum requirement is that a vehicle must at least have third party legal liability insurance before it can be driven on a public road.
“Several people are under the impression that insurance is just another way to swindle money. This is farthest from the truth as there are many benefits of having motor vehicle insurance. If one is involved in an accident, one would not be liable to pay for any damage to life or property (with an insurance policy),” said a senior official of the Insurance Information Bureau.
Traffic police say that they are checking documents regularly. “We are taking a serious look at traffic violations; our priority is to ensure that there is no wayward driving in the city. However, there is very little knowledge about insurance for auto, bus and transport drivers,” Additional Commissioner of Police (Traffic) Hyderabad, Anil Kumar, told Deccan Chronicle. Car owners are better informed about the benefits of a valid insurance policy, but autos and buses change hands so often that the owners do not feel the need to purchase a vehicle insurance policy, he said.