Besides being a statutory requirement under the Motor Traffic Act, Motor insurance is an economic necessity to compensate vehicle owners in an unfortunate event of loss or damage to their vehicle.
First-time vehicle owners and those who just secured their driving license may find vehicle insurance a complex and tricky subject they feel ill-equipped to tackle. Here's everything you need to know about motor insurance and why it's necessary to get one.
At its most basic level, vehicle insurance offers you financial compensation and protection in the event that you are involved in a motor vehicle accident and if your vehicle is impaired or even stolen. Different insurance companies including Continental Insurance offer motor insurance packages with certain limits on coverage so there is a specific amount that can be paid off as compensation should you face an accident on the road or your vehicle is stolen. You need to maintain an active policy so that your vehicle insurance company can provide financial assistance in case of an unfortunate incident.
Anyone who has vehicle insurance can rest assured that the damage you may have caused to another vehicle will be covered by the company. This also extends to personal property as well, when the accident also resulted in damage to the property of others. Medical bills for anyone injured due to the accident are also part of your coverage as most vehicle insurance companies in Sri Lanka will include liability insurance along with the coverage. When an accident occurs, you must file a claim with your insurance company so that your motor vehicle insurance policy can be used to pay for damages. The insurance company may pay you out or pay the other party or even the mechanic that's repairing the damage according to agreed terms and conditions and subjectivities of vehicle insurance policy.
Since there are so many types of vehicle insurance and different insurance companies offering their services, it is important to have comparison of premium and coverage/benefits to select best option. Doing research and finding a company with a good track record of payout and a hassle-free claim filing process is key. Vehicle insurance is paid out in monthly installments and it is crucial not to fall behind on payments as it is necessary to keep your policy "active" in order to make any claims. Always pay your insurance premiums before the deadline and in full so that filing a claim is all you have to do in case of an accident.
Some drivers question why vehicle insurance is required but as experienced vehicle owners know, it is compulsory to have vehicle insurance in Sri Lanka from a legal standpoint. Meaning driving without vehicle insurance is an offence that is punishable by law. It is not uncommon for drivers to lose their license or face hefty fines if they are discovered to be driving without a vehicle insurance policy. Overall, an insurance policy from Continental Insurance that covers damages in case of emergency situations is a financial safeguard from the fallout of having to face the consequences of an accident or a stolen vehicle.
In addition to paying for damages and injuries caused during an accident, vehicle insurance policies also pay to repair and replace spare parts in vehicles in the case of theft or other instances including vandalism, extreme weather etc. Vehicle insurance policies also pay to replace or repair vehicle in case of a collision while also paying for third party individuals who may have been injured. Damage caused due to lack of maintenance, engine failure, mechanical faults as well as electrical breakdowns is not covered by motor insurance policies.