Why Insurance is important?

Today happened to have been one of those days when I witnessed an accident. I was leaving from my office at about 1:15pm and heard a vicious screech which resulted into a bang. Me and my colleague instantly rushed to the scene. People were also running towards that spot. I managed to approach the driver(who was 20–22 years old)somehow and asked him if I could get him to hospital but Alhamdulilah he was safe and sound.

He was quite shocked regarding damages which the car had just faced. I asked him not to worry Insurance Company will pay the damages but he told me my car is not insured. I will have to repair it from my pocket money. I thought for a while if he had got his car insured he would have escaped from the financial burden. According to the RTA(Road Traffic Act), every car which is to be driven on road needs to be insured but we are unaware of it.

So consider this fact and know the importance of Insurance as it mitigates the loss/damage.