Third-party car insurance is designed to protect you against legal or accidental liability, financial loss, or damage to property due to the policyholder’s mistake. It covers injuries and damages caused by the insured car to a third party personal or property.
Third-party insurance is mandatory for anyone who drives or owns a motor vehicle in India, according to the Motor Vehicles Act of 1988. The policy protects you in case of a third-party injury or even death of the person because of your vehicle.
Let’s explore why third-party car insurance is important and useful.
Hard fact
Driving any vehicle brings with it the possibility of a real risk of an accident. In India only, more than 5 lakh people meet road accidents. The number is the highest in the world. In these road accidents, over 1.5 lakh people lose their lives. More than 3 lakh people are severely injured or become disabled because of the accident. In such cases, third-party motor insurance in India emerged as more of a need than a preference.
Third-party insurance is important and useful.
- Because it is mandated by the law for all automobiles driving on the road to have a third-party insurance policy.
- Because it financially protects you against any third-party damage, loss of property, death or bodily injury caused to the third party.
Let’s dig deeper
Legal protection & financial support:
When you have third-party car insurance, it will financially protect you in case of disability or death of the third party and if any damage occurred to the third-party property or vehicle. This secures your legal and financial liability in case a third-party claim is taken care of.
Easily obtainable:
Since third-party car insurance is mandatory to buy by the law of the land, it is easily accessible and you can buy or renew it online. You can get the most suitable one at your own time and convenience. Many insurance companies in India are offering motor insurance without any paperwork.
Stress-free & Peace of mind:
No cure is better than having peace of mind and remaining stress-free. A third-party car insurance policy lets you have peace of mind in the event of a miserable or traumatic event that is financially draining. With a third-party car insurance cover by your side, you won’t need to worry about your finances because you will get quick monetary relief from your insurance company for dealing with this unfortunate accident.
Affordable & beneficial:
A third-party car insurance cover is available at affordable premium rates that can easily fit your budget. For example, if you have a car with less than 1000 CC capacity engines, then the third-party insurance premium may be around Rs. 1,129. In addition, there are many wherein you will get the cover on the digital platform without any paperwork, but with a hassle-free process.
Personal Accident (PA) cover
Personal accident cover with third-party car insurance is legally mandatory. It is therefore important to purchase this insurance policy along with a third-party liability plan. The PA covers, coming along with the plan, offer insurance coverage of up to Rs. 15 lakh for the owner/driver. The claim can be availed in case of permanent disability or death while driving.
The features of third-party insurance include coverage for any damage or loss of property/vehicle of the third party and any bodily injury caused to the third party. Coverage is also available for an accident that results in the death of a third party.
Conclusion
A third-party car insurance cover is not only essential but mandatory by law. Anyone driving a motor vehicle without insurance will be fined by the traffic police. With the insurance cover, you will legally comply with the requirements of the Motor Vehicles Act. But, it is important to select the right insurance company. Go for one that is trusted, certified by the IRDA, and ready to provide you with coverage details along with an online quote before you purchase the policy. This will allow you to invest in an insurance plan that best meets your requirements.
Note: As a responsible driver, it is good for you to search for comprehensive insurance for your car that provides coverage not only for third-party liabilities but also own-damage to the insured vehicle and personal accident cover for the owner-driver. Besides, you can also go for pretty good add-ons with your basic car insurance policy.