Wednesday, 8 Apr 2020

How Does Third Party Car Insurance Coverage Work?

When you purchase a car, it is mandatory to buy a third-party car insurance policy along with it. With the help of this, you won’t be under financial burden. Furthermore, protection will be offered against unnecessary expenses that arise from the medical treatment, property damage or a financial loss, accidental or legal liability from the end of a third-party.

Third-Party Car Insurance explained

A third-party car insurance policy will offer protection from legal liabilities that might arise in case of an accident. If you hit someone else’s car and severe damage is caused to them, then your insurer bears the expenses as well as liabilities that arise.

Why is it mandatory to have Third-Party Car Insurance Policy in India?

According to the Motor Vehicles Act, 1988, every car owner must buy a third party car insurance plan. If you do not have insurance and get caught driving a car on Indian roads, then you might face some serious legal issues. Therefore, it is better to avail a third-party insurance plan for your vehicle.

What comes under a Third-Party Car Insurance Plan?

If you are responsible for any injury or loss to the third-party, then the insurer will cover the liabilities. The person who is insured is termed as first party, the insurer or the insurance provider is called a second party, and the injured individual is called the third-party.

But, before you purchase a car insurance plan, always compare several plans online. Read ahead, to know in detail about the inclusions of third-party insurance:

  1. Damage Caused to the Property

If any accident takes place and severe damage is caused to the property of the third-party, then you need not worry about the expenses that arise from the mishap. Under third-party insurance, the insurer pays for the damages caused to the third-party.

  1. Death of the third-party

If a death situation arises, the claims will be judged according to the court tribunals. The court will decide the compensation according to what the consequences of the unfortunate loss are as faced by the third party.

  1. Disability

At times, accidents might also lead to disability. If a partial disability is caused, such as a fracture or some other disablements that can be recovered with time, then the necessary coverage will be offered by the insurer, in terms of medical expenses to the person who is affected. Nevertheless, if any permanent disability is caused to the third-party, then a pre-assured sum is offered to them, by the insurer.

  1. Bodily Injuries

The insurance company provides medical coverage to all types of physical injuries, no matter how severe the wounds of the third-party are. Good insurance companies understand that accidents are not in our control and so the insurers offer you financial support.

Third-party insurance plan supports low premiums, no-fault liability as well as covers bodily injury, property damage, along with the death of a third party. Therefore, do not forget to purchase third-party car insurance while buying a new car. Also, car insurance renewal from time to time is equally important.