Third-party insurance cover is the basic insurance compulsory for every car owner to hold while driving. (Photo credit: TV9 Bharatvarsh)
According to the Motor Vehicles Act, it is mandatory that all vehicles that operate in any public space in India must have motor vehicle insurance coverage.
News
- In 1850, the first General Insurance company was established in Calcutta.
- IRDA monitors the development and other insurance-related activities.
- Third-party insurance is a mandatory motor insurance policy.
New Delhi: Car Insurance Day is observed on February 1 every year. The day reminds us to ensure that our insurance policy is renewed and updated regardless of whether our car is the most popular brand in the country. Car Insurance Day encourages us to reflect on the money we saved and the headaches we avoided. It should be mentioned that car insurance provides financial protection in the event of an accident, fire, or theft. It also provides benefits to survivors when an accident results in death. In this article, we will outline the history, origin, and other details of Car Insurance Day.
What is insurance?
Insurance refers to a legal agreement between two parties – the insurer and the insured, also known as insurance coverage or insurance policy. The insurer provides financial coverage for the losses of the insured that s/he may bear under certain circumstances.
History
The first company offering Fire Insurance was launched in 1751. In 1897, Gilbert J Loomis became the first person to buy an automotive liability insurance policy. In 1902, insurance became popular and new plans were put in place to protect against fire as well as automobile theft. In 1912, insurance coverage widened yet again. This time extending and offering protection for automotive, liability, and fire insurance. In 1927, Massachusetts launched a bold move mandating liability insurance.
Significance
Car Insurance Day is dedicated to raising awareness about the importance of car insurance and encouraging drivers to make sure they are properly insured. It is a reminder to review your car insurance coverage every year.
How to observe Car Insurance Day?
Car Insurance Day can be celebrated in many ways. These include:
Check your car insurance policy renewal date.
Remind your relatives and friends to check the car insurance policy renewal date.
Spread the word about Car Insurance Day on social media.
How to buy/renew car insurance online?
Step 1: Visit your insurance provider’s website.
Step 2: Fill in the required information (car registration number, mobile number, email address, PAN and other details).
Step 3: Enter the policy details.
Step 4: Pay the premium amount via online payment.
What is the Insurance Regulatory and Development Authority of India?
The Insurance Regulatory and Development Authority of India, abbreviated as IRDA, is the country’s supervisory organisation that supervises and commands all insurance businesses, both life insurance and general insurance.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.