Third-party car insurance or third-party liability cover is a constitutional prerequisite under the Motor Vehicles Act of 1988, and is compulsory for anyone possessing, purchasing, or driving a motor vehicle.
It is known as the ‘third-party’ coverage because it does not provide any benefit to you, instead, covers your legal liability for the demise/ disability/ injury caused to the third-party or harm to the third-party vehicle.
Thus, even though you are not the direct beneficiary, a third-party car insurance secures you from legal repercussions which could cost you heavily otherwise.
Since the third party car insurance plan is mandatory in India, it is usually a part of the main car insurance policy.
Basics about Third Party Car Insurance
Popular third party car insurance plans offer a lot of features such as:
i. Reimbursement in Case of
– Permanent total disability
If the third-party involved in the accident suffers a partial or permanent disability, the insurance covers the expenses of the damage for the person.
Third party insurance also covers the case of death due to a severe accident and provides death compensation to the third party. This coverage is unrestricted and generally depends on factors like the earning volume of the affected, the effect on the household, etc.
– Property Damage
The third party plan also insures you against any loss or damage of the property belonging to the third-party.
ii. Ensures Peace of Mind
Third-party car insurance policies bring peace of mind to you as an owner-driver of a car in India, since you are financially covered for any traumatic situations involving your vehicle which can only be compensated for monetarily. Hence, instead of having to worry about such unforeseen expenses, attention can be paid to providing immediate relief from stress and coping up with the incident.
iii. Easily Accessible
Third-party car insurance policies are easily accessible as they can be bought and renewed online itself, which is a quick and simple process. Hence, it can easily be availed by anyone as per their time and convenience.
The third-party vehicle liability insurance as an add-on or a part of the main plan is cost-effective and quite advantageous in terms of financial costs and premiums. Such policies are affordable by all as the premiums are low and have a fixed nominal value.
How Much Does Third Party Insurance Cost?
Third-party car insurance is an affordable option when compared to other insurance plans. A comprehensive car cover for a mid-segment car, along with protection for your own damage and third-party liability will cost you around INR 10,000- 12,000.
But, buying only a third-party liability cover costs you even less than INR 1,000, which is a minor segment of the complete cover.
Also, as third-party insurance cover is compulsory by law, you generally won’t find any discrepancy in the premiums of these policies and hence, the premium amounts will essentially remain similar regardless of the insurance company you choose.
Always make sure that the insurance company you choose is registered with the Insurance and Regulatory Authority of India (IRDA) before you purchase a third-party car insurance in 2018.
How to Make the Most of Third Party Car Insurance
You can make the most of any third-party car insurance by ensuring that the plan you select has the following benefits:
i. Easy and Hassle-Free Purchase and Renewal
Third-party car insurance policy must be easily available to be bought and renewed. You should find it easily, either through the website of the insurance company or through insurance aggregator portals like Coverfox.com.
At the same time, it should be possible to renew the insurance without too many additional processes. Ideally, the company should store a copy of the previous records associated with you to make it a hassle-free and tension-free process.
ii. Easy Insurance Claim Back Process
In the event of an accident, there is enough stress that both parties go through, the policyholder and the third-party. Therefore, the insurance companies must provide relief with a simple and paperless claim back process, so as not to add undue stress. Ensure that you read the policy terms and conditions of your liability-only plan thoroughly.
Which Insurance Plan is the Best for You?
Coverfox.com can help you provide more information and assistance on the best third-party car insurance policies along with detailed descriptions of their features and benefits.
It also assists you with cost analysis and provides you with a comparison tool of all these different insurance policies. Stay insured, stay safe.