Traffic insurance pays on your behalf for damages that may occur to the other party's vehicle, third-party property, or their bodily injuries (disability and death) as a result of an accident. These payments are made according to the coverage and limits specified in your policy. Compulsory traffic insurance helps secure your future against potential adverse situations, protecting you from the financial consequences of accidents that may occur on the road.

Traffic insurance is regulated as a legal requirement, and it is illegal for vehicles to be on the road without it. If a vehicle is found to be without traffic insurance, authorities may issue a traffic fine and potentially impound the vehicle. Vehicle owners may also face additional penalties such as late fees for not having insurance. Therefore, it is important to obtain and maintain traffic insurance promptly and regularly to fulfill legal requirements and protect against potential risks.

Traffic insurance is a mandatory policy typically issued for a period of 1 year. It needs to be renewed before the expiration date of the policy. Renewal usually occurs close to the expiration date, and vehicle owners must ensure their traffic insurance is continuously updated. This is important to fulfill legal requirements and ensure the vehicle can legally operate on the road.

If compulsory traffic insurance is not renewed on time, a late fee may be applied when renewing the policy for the first time. If a vehicle owner fails to renew their traffic insurance and is found driving without a valid policy, they may face a traffic fine and the vehicle could be impounded. Since traffic insurance policies are typically issued for one-year periods, it's necessary to renew the insurance before each policy period ends. This is important to comply with legal requirements and protect against potential risks.

It is important to arrange for traffic insurance policy on the day the vehicle is registered under your name. For each month you delay obtaining the traffic insurance policy, a late fee of 5% may be applied. This late fee can increase up to a maximum of 50%. Therefore, it is crucial to renew and keep the traffic insurance policy up to date to avoid these late fees.