Primary Reason for The Boom in Insurance Companies
In the list of the industries which boomed in the recent past there is a place for the insurance companies as well. Since last few years the insurances companies were just surviving as usually not many people buy any insurance policy especially the car insurance policies.
The game is completely changed since the last amendment in the law. As per the new legal requirements to drive any vehicle whether it is commercial or private, all the vehicles should be insured before they run on the roads. There are strict laws made in this regard.
This has also been stated that if anyone found guilty in this respect then there are few predefined punishments. The punishments decide for this law violations are fine or imprisonment or both, depends on the condition. The reason why the govt. put this bar is quite specific and strong. People do not feel the need of the insurance because they want to save money but why the govt. wants them to insure their vehicles is to save the lives.
The insurance policy which is required as per the recently passed law is the liability coverage.
In this kind of policies the owner of the car does not get any direct benefits.
The only benefit for the owner of the car is mental satisfaction because if unfortunately the car meets with an accident then the claim money for the damage of the other car and medical allowances for the people in the other car will be paid b y the insurance company only.
Most of the people do not understand the difference between the policies and they simply sign up for the policies which are available at the cheaper rates. Before purchasing an insurance policy one should compare all the available alternatives as if one is planning to buy the policy which falls under the liability coverage then he can get more by paying a little extra.
Usually people avoid this little extra because they thin k that there is a benefit of the agent in it but they shouldn’t do this as if they take a serious look then they can find that there are many more benefits available to him with just a little extra cost.
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