Everything You Need to Know About the Vehicle Insurance Card
Vehicle insurance is not just a legal requirement but also a financial safety net for every vehicle owner. Accidents can happen unexpectedly, and having valid insurance ensures you’re protected against heavy losses. Alongside your income license and driver’s license, the vehicle insurance card is one of the three mandatory documents you must carry when driving. According to the Motor Vehicle Act, driving without valid insurance is a punishable offense. Today, MotorGuide explains everything you need to know about the vehicle insurance card.
What is Motor Vehicle Insurance?
Motor vehicle insurance provides financial coverage in case of an accident or other damages. It compensates for:
- Damage to vehicles
- Injuries to passengers
- Damage caused to third parties or property
Damages Covered by Motor Vehicle Insurance
A standard policy may cover:
- Accidents
- Internal fires and external explosions
- Lightning strikes
- Theft
- Repairs after accidents (within coverage limits)
Optional coverage may include damages from riots, floods, and natural disasters. Always check your policy terms for details.
Key Factors to Consider
- Insure your vehicle at its market value—not more, not less.
- Choose a policy that suits your vehicle’s use (personal, passenger transport, goods, or driver training).
- If the full premium isn’t paid within the agreed time (usually 60 days), the policy can be canceled without notice.
- Always inform both the insurance company and the nearest police station immediately after an accident.
What is a Vehicle Insurance Card?
A vehicle insurance card is proof that your vehicle is insured. You must carry it at all times—whether your vehicle is stopped by police or involved in an accident.
What Information Does It Contain?
A typical vehicle insurance card includes:
- Vehicle number
- Policy number
- Owner’s name, address, and NIC number
- Insurance coverage period
- Chassis number
How to Get an Insurance Card
To obtain an insurance card, you must first insure your vehicle. The card is issued under the owner’s name, and the cost depends on the vehicle’s valuation and the insurance plan chosen.
Why is an Insurance Card Necessary?
Accidents are unpredictable. Whether your vehicle causes damage to another or suffers damage from others, an insurance card ensures:
- Financial protection for you
- Reduced loss for third parties
- Legal compliance on the road
You can choose between:
- Full Insurance Card – Covers both the policyholder and third party.
- Third-Party Insurance Card – Covers only the third party, leaving the policyholder to bear personal losses.
A vehicle insurance card is not just a formality—it’s essential for safe, responsible driving. Whether you are a vehicle owner or planning to buy one, ensure that you secure the correct insurance card to avoid penalties and protect yourself against unexpected expenses.
