Our morning newspaper reading session while sipping a cup of coffee is not cheerful/ joyous as before. With the increasing use of vehicles, there has been a rise in the number of incidents about the loss of lives on the road which is very disheartening. Thus, there are several key factors that come into play when you think about some kind of insurance for your safety. The third party car insurance policy is one of the common automobile insurance, which is purchased for the protection against the claims made by the third-party. It is from liability insurance purchased by an insured (first party) from an insurer (second party) for security against the declaration of another (third party). Regardless of the cause of the damages, the first party is responsible for the damage.
The third party car insurance is called as the liability-only plan or act only policy and is mandatory as per the Indian law. If the third party encounters any accident such as injuries, death or property damage then this insurance plan gives protection to the third party from legal liability. This is also the most economical car insurance policy available in the market today. It can be called as the most optimum plan for the person who seldom uses his/her car. It is a statutory requirement and beneficiary policy as you cannot measure the level of damage due to an accident.
Benefits and Features
While speaking about the third party car insurance, let’s see what it covers:
- Injured person’s liability coverage – This covers the costs resulting from injuries to a person which includes hospital care, lost wages, suffering due to a sudden accident, minor injuries to major fractures. Permanent total disability as well as partial disability suffered by the third party due to accident by your car is also covered.
- Property damage liability coverage – This covers the expenses for the damages to the third party property. A sum of up to Rs.7.5 lakh is covered for third party property damage.
- Personal Accident Cover for Owner-Driver – In case the owner-driver suffers death or any bodily injuries in an accident, then the third-party car insurance will cover the below:
|Type OF INJURY||% of COMPENSATION|
|Loss of two limbs or sight of two eyes or one limb or sight of one eye||100%|
|Loss of one limb or sight of one eye||50%|
|Permanent total disablement from injuries other than the one’s named above||100%|
The features of the third party car insurance
Among the main features, this insurance covers these areas:
- Permanent injury or damage to the individual
- Death of the person
- Damage caused by the property of the person
- Damage caused while driving the insured vehicle on the road
- Some extra features can be bought on top of the base of the third party property insurance
The benefits of the third party car insurance
- The premium of the third party car insurance is less than other policies.
- It covers bodily injuries and accidental deaths by the insured person
- It covers medical expenses for an injured driver
- It takes care about the accidental damages
- If there is any illegal liability, it takes care of that too
- If the ‘value of your vehicle is low’, it’s a smart choice to take the benefits of the third party car insurance
- Sometimes, roadside help and doorstep breakdown is also provided
Benefits of Car Insurance Policy
Third party car insurance is mandatory by law and driving around without valid car insurance is illegal. A minimum amount of car insurance is required and it can help with the loss of huge amount, in the following manner:
- It provides legal benefits to the survivor if he/she faces death due to an accident
- It covers the lawsuits which include legal fees, brought against the person as a result of an accident
- It covers the repair bills of the vehicle due to an accident
- Additional discount includes car insurance policies which allow premium discounts for theft.
- It also provides the advantage of extended coverage when another person drives your car with your permission
Undoubtedly, motor vehicle insurance covers you from the losses that happen due to unforeseen risks. The financial losses arising from theft, accidents, or other natural calamities are taken care of through the Comprehensive car insurance policy. Motor insurance can be confusing to many people as there are many options available. It’s hard to choose from various motor policies and decide which one you should carry with you to protect yourself on the road. Motor insurance can cover the insured partly, insured people, both car, and people (third-party). The premium of the insurance depends upon some basic parameters like vehicle classification, age or gender of the policyholder.
The traditional way of buying an insurance is available, where you can contact the insurance company or the agent physically. This is convenient but at the same time have some constraints like getting the right advice from the agent. Comparing car insurance policy or buying it online is easier and safer now. One need to upload some basic information and documents and not much paperwork is required for this process. The benefits that the insurance company provides are quite good to buy the third party car insurance, if you want to have peaceful sleep at night and worry-free travel on the road.