April 5, 2020
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Finance

Important Facts about Third-Party Car Insurance You Should Be Aware Of

As a car owner, you would want to make sure that you don’t bear any unnecessary expenses after spending so much to purchase your desired car. Road accidents are unforeseeable and so you should be careful as it can lead to personal injuries, property damage, financial loss, legal liability, etc. To solve this problem, several reputed insurance companies in India provide effective third-party car insurance plans.

Definition of a Third-Party Insurance Policy

A car insurance policy that safeguards you from any legal liabilities arising out of an accident with a third-party is termed as a third-party liability policy. In case you are responsible for an accident wherein someone’s person or property was damaged by your insured vehicle, then your insurance provider will compensate for the liabilities arising out of the incident.

Compulsory by law

As per the Motor Vehicles Act, 1988, it is mandatory for every vehicle plying on Indian roads to at least have a third party car insurance policy. If you disobey the law and still drive without a valid insurance plan, you would face serious legal ramifications. It is the same as driving a car without a valid driver’s license.

Coverage

It is essential to note what all is covered under your third party car insurance policy. Coverage is the compensation the insurance provider will offer for the liabilities arising out of an accident in case you are responsible for any kind of loss or injury to the third-party.

Have a look at the coverage provided by this policy in detail:

  1. Physical Injuries

The insurance company understands that accidents can be unpredictable. Hence, they provide medical coverage for absolutely any kind of bodily injuries sustained by the third-party.

  1. Damage caused to property

Accidents might cause severe damage to the property of a third-party and the expenses that arise from this can stress you out. However, taking up third-party insurance will solve this tension as the insurance provider will pay for any damages caused to the third-party.

  1. Any type of disability

Accidents can lead to serious injuries to the third-party and even result in partial or permanent disabilities. Partial disabilities such as fractures can be cured and the person can recover with time. In situations like these, the insurer provides coverage for medical expenses to the person affected. But if the accident has caused permanent disablement, compensation is decided based on the consequences of the incident and the earning capacity of the victim.

  1. Death

Sadly, nothing can ever make up for loss of life due to an accident. However, your insurance provider even provides compensation in such instances. In such cases, the claim is judged by a court tribunal. Similar to permanent disability, the court decides the compensation after considering the consequences of the incident and the earning capacity of the victim.

Driving a car without the mandatory third-party insurance cover is not only illegal but also dangerous. Make sure you purchase this policy online as it will help you save a lot by cutting out middlemen and agents. Even car insurance renewal is also possible online and the entire process will take you not more than 15 minutes.