Third Party Insurance

Third party insurance cover is the basic insurance that is compulsory for every car owner to hold while driving. It gives coverage to the third parties for their damages caused due to an accident with the insured car. Also, being a mandatory cover, it delivers legal compliance as well along with the coverage.

What is Third Party Insurance Cover?

Third party insurance policy provides coverage from all the third party liabilities which may arise during an accident or mishap such as involving your car. This insurance policy provides coverage for third party liabilities such as bodily injuries or demise of the third party or property damages for upto Rs. 7.5 lakhs. A third party insurance policy has been made mandatory for every car owner in India as per Motor Vehicles Act.

How Does Third Party Insurance Work?

Under a third party insurance policy financial assistance is provided in case any third party liabilities such as injuries, death and property damage that may happen due to an accident or mishap involving the insured vehicle.This insurance cover lessens the financial burden of the policyholder for any damage sustained by a third party with the insured car.

In case of an accident, the insured person should intimate the insurer immediately about the mishap before raising a claim. After the claim is raised, the insurance company appoints a surveyor to examine the extent of damages and verify the estimated repair cost. After the verification process, the insurance company pays off the amount of the claim.

Importance of Third Party Car Insurance Policy

As per Motos Tariff Act, third party insurance policy has been made compulsory for every vehicle owner in India. A 3rd party insurance policy is known for providing the most essential and basic type of coverage. This car insurance policy is very affordable as compared to other car insurance policies in India. Besides, helping you comply with the law, a third party insurance policy for your vehicle provides basic coverage which is very essential while driving a car.

Why Do You Need Third Party Insurance?

Apart from the legal clause, third party car insurance comes in handy when the insured car hits another vehicle. Nobody can gauge the level of damage caused by an accident as it can even lead to injury, disability and sometimes death as well. In such cases, the victim is allowed to register a case claiming compensation. Here third party insurance comes into the picture. A 3rd party insurance policy provides coverage to the insured vehicle in case of any liability claim that may arise for causing bodily injury, property damage or demise of the third party.

As per the guidelines of IRDAI, while there is no limit in case of death, the property damage coverage is limited up to Rs 7.5 lakh in the case of car insurance. It is better to stick to third party liability insurance if the insured vehicle is more than 5 years old.