There are four mandatory documents you need to posses if you own or just drive a two/four wheeler in
The registration certificate – to prove the authenticity of the vehicle
The tax token – to show that the Government has not been cheated
A Driver’s License – a proof of the driver’s capability to drive
The mandatory insurance cover – the document which made me write this blog.
The insurance recommended by the Government is for the vehicle. The general procedure followed is that the premium is calculated according to the amount insured (generally the cost of the vehicle) and the customer is required to pay it to the insurance company on an annual basis. What is the vehicle insured for? In case of wear and tear, in case of an accident or some other misfortune when the vehicle is damaged, the customer may have relief from the bills.
Let’s just compare this with the normal insurance which is done for us. The amount insured is chosen, premium calculated and paid on a regular basis for a fixed time. In due course the customer gets some benefits and at the end of the policy term, the insured amount is paid back and in case of a misfortune, the amount is paid back immediately.
Now the real issue is that when the insurance for the vehicle is paid, except for claims made in case of wear and tear and provided the terms and conditions of the company are satisfied, the customer gets back a part of the amount we spend for the spare part which is replaced. Generally, the labour costs and cost of certain spares like plastics are not refunded. How many people actually claim? But every owner is expected to pay the insurance year after year until he owns that vehicle. With progress, the old vehicle is either exchanged for a new one or sold and the insurance premium paid till that time goes where – nowhere but the insurance company.
When nobody except the insurance company is actually benefited from the so called insurance cover for the vehicle what is the logic behind paying it? Why has it been made mandatory to posses an insurance cover? Or if there is a legitimate reason to justify the amount spent by the people in the name of insurance, what is the reason?
Government statistics show that as on 31st march 2004, 72718000 registered vehicles are there in
At least, if all the vehicle owners were made to take a life insurance for themselves it would have served the common man better than this farce!