Motor insurance is a type of insurance purchased for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise there from.
You see, car accidents are bound to happen, whether it is some others' fault or careless mistake of ourselves. Can you imagine out of 20 over millions of cars driving on the road everyday in our country, it is just going to happen, somewhere, to someone, either it's my 'lucky day', yours, or anyone else'.. Do you agree? When it happens, who is going to bear the 'lost'? Damages done to people's cars, building, public infrastructure, or even causing injury and the life of a person.. How will they be compensated just because of some others mistakes. The victims are innocent! The government can't allow this to happen, can they? It will cause chaos to the society! Nor can the government pay every single compensation due to road accidents happening everyday, it comes up to billions of dollar a year!
Therefore insurance comes into the picture, we as drivers owe a responsibility and liability to the safety of other users on the public road. It comes back to the basic principle of insurance where the 'risk' is transferred to insurance companies. Insurance companies on the other hand, collect a premium from every types of vehicles on the road and manages it legally to pay for the losses and compensate the victims financially. The government is then smart enough to make motor insurance compulsory for all the road users in order to overcome this problem!
You see, car accidents are bound to happen, whether it is some others' fault or careless mistake of ourselves. Can you imagine out of 20 over millions of cars driving on the road everyday in our country, it is just going to happen, somewhere, to someone, either it's my 'lucky day', yours, or anyone else'.. Do you agree? When it happens, who is going to bear the 'lost'? Damages done to people's cars, building, public infrastructure, or even causing injury and the life of a person.. How will they be compensated just because of some others mistakes. The victims are innocent! The government can't allow this to happen, can they? It will cause chaos to the society! Nor can the government pay every single compensation due to road accidents happening everyday, it comes up to billions of dollar a year!
Therefore insurance comes into the picture, we as drivers owe a responsibility and liability to the safety of other users on the public road. It comes back to the basic principle of insurance where the 'risk' is transferred to insurance companies. Insurance companies on the other hand, collect a premium from every types of vehicles on the road and manages it legally to pay for the losses and compensate the victims financially. The government is then smart enough to make motor insurance compulsory for all the road users in order to overcome this problem!