Motor insurance is mandatory for which primary reason?

Motor insurance is mandatory primarily to protect innocent victims of road accidents. The essential aim of this requirement is to ensure that individuals who suffer injuries or damage as a result of someone else's driving are compensated for their losses. By mandating motor insurance, governments can provide a safety net for victims, which helps uphold justice and ensures that those who are wronged can obtain financial redress without having to rely solely on the at-fault party's ability to pay.

This concept stems from the principle that all drivers should be financially responsible for the potential harm their driving might cause to others. Without mandatory insurance, victims could face significant financial challenges if they were to be involved in an accident with an uninsured driver, potentially leading to substantial economic and emotional distress.

Other reasons, like generating government income from Insurance Premium Tax, supporting the insurance industry's stability, or benefiting the motor repair industry, do not encapsulate the primary focus, which is the protection and welfare of those who may become victims of road traffic incidents. The centrality of victim protection in mandatory motor insurance reflects societal values around accountability and uncompromised care for those at risk due to others' driving behaviors.