There is a major chance of death or injuries during a car accident. Also, there are greater chances of physical damage or damage to property. But still thanks to something known as “third party car insurance“.
Have some doubts regarding third-party car insurance? Here is a quick review that will hopefully clear you major ones:
What is a Third Party Insurance
Suppose, you hit someone’s car and cause serious damage to the third party, your insurer will pay the lawful liability.
Third-party insurance protects you from any legally payable liability that occurred to the third party in your own car by an accident, incident, or any mishappening. Be it physical injury, death, or loss to physical property your insurer will compensate for it. This means you are covered against any financial liability arising towards the third party.
Is it Mandatory In India?
The answer is Yes, third-party insurance is mandatory in India. It is a necessity for you to buy a third-party insurance plan while buying a new car in India. The Motor Vehicle Act,1988 says that If in case you are driving a vehicle in India without third-party insurance, you may face some serious legal issues. So better buy one.
What does a third party car insurance cover
Now, this is the major question. In simple words, third party insurance will cover the liability occurred to the third party by the insurance holder during an accident.
Let’s get it in detail, some points described here will make you more clear about the third-party insurance cover:
- The lawful liability in case of death or injury is unlimited to the third party. In case of the death of a third party person, the insurer will offer death compensation to the third party. Still, the liability is decided by the Motor Tribunal. It depends on factors like the impact of the victim’s death on the victim’s family.
- In case of injury to the victim, the insurer will compensate for the damage to the vehicle to the injury whether it be a small injury or a major fracture.
- The liability also covers compensation for total or partial mental or physical disability.
- Compensation to bodily losses is not possible but the company provides financial compensations.
- Property damage- if you have caused heavy damage to the physical property of the victim in an accident, you really don’t need to worry about it. The insurer will compensate for it. You can easily step out of the mess.
So this is the major things covered under the third-party insurance cover. This coverage benefits the insured a lot in case of an accident or any misshapen. Further, there are more benefits of having third-party insurance listed below:
Benefits of Third-Party car insurance
- Legal assistance- third party car insurance not just provides financial assistance. In case of an accident, the third party insurance will also protect you from the mess of legal obligations created by the Motor Tribunal. So it’s a deal of benefit as you will get both legal and financial assistance if you are a third-party car insurance holder.
- Cost-effectiveness– if you think the third party insurance is costly, you are wrong. Third-party car insurance deals are meant to cover all income groups. And the benefits are much more than what it costs to you. The premium you have to pay depends on the model and age of your vehicle.
- Online attainment- to buy third-party car insurance, you do not need to visit the company. Insurance companies have dedicated websites, so you just need to visit their website, follow the guidelines, and get your vehicle insured online.
Hope this article has cleared your doubts regarding third-party car insurance covers.
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