If you own a car or are planning to get one, you cannot take it on the roads without obtaining valid insurance for the same. Though there are two types of car insurance, third-party insurance is considered the most basic insurance that no vehicle owner can do without. If you’re ever caught driving an uninsured car, you will be heavily penalized by the authorities.
Third-party insurance for car is comparatively affordable compared to other car insurance, but it also offers limited coverage. If you’re contemplating getting third-party car insurance from a well-known insurance provider but want to gather necessary information before making any purchase, this article is here to guide you.
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Third-Party Car Insurance: Things to Know
The Indian Motor Vehicle Act mandates car owners to get at least third-party insurance for their registered vehicle if they don’t want to go ahead with comprehensive insurance. Third-party insurance primarily covers the vehicle owner against losses/damages caused to a third party during an accident. Like other insurance policies in the market, even third-party insurance for car has specific inclusions and exclusions that you should be aware of.
● Inclusions in a Third-Party Car Insurance
Irrespective of your driving skills, driving on chaotic Indian roads can sometimes be challenging. And with so much crowd and traffic around, chances of unfortunate events, like road accidents, increase manifold. In such a situation, if you end up hurting/damaging a third party or his property, you will be liable to pay the damage cost to the other individual. It is during such cases when third-party insurance comes to the rescue. They cover car owners for:
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1. Personal Damages to Third-Party
If a person gets hurt during an accident because of your car, you will have to bear his medical and other associated expenses. If you have taken third-party insurance, you can claim the financials involved from your insurance provider, and they’ll take care of the rest.
2. Property Damages to Third-Party
Similar to personal damages, you are also required to pay the property damage cost to the third party. Whether you accidentally hit another vehicle or a street lamp post, you will be liable to pay for the damages caused because of your car. Luckily, it is also covered in third-party insurance, so policyholders don’t have to bear the brunt of such unexpected out-of-pocket expenses.
● Exclusions in Third-Party Car Insurance
While third-party car insurance covers the vehicle owner for personal and property damages caused to a third party, it doesn’t cover the damage caused to the policyholder. But this negative can be turned into a positive by adding a personal accident cover to your basic third-party car insurance. You will have to pay for personal accident cover separately, but the extra payment will be worth it, as it will bring along peace of mind.
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● Difference Between Comprehensive and Third-Party Car Insurance
The fundamental difference between comprehensive and third-party insurance lies in coverage. While the third-party insurance protects the car owner from a property and third-party damage caused by his vehicle, the comprehensive insurance covers policyholders for both third-party and own damages. You should purchase comprehensive car insurance if you want maximum coverage. The insurance premium varies proportionately to the inclusions/coverage a policy offers, so don’t worry if you have to pay more for comprehensive insurance.
But before you purchase any insurance for your vehicle, always remember that no claim will be entertained if the policyholder was found driving in a drunken state or the driver had no valid driving license. Also, if a minor was found driving the car at the time of the accident, no claim will be fulfilled. So always be responsible while driving to avoid any unpleasant surprises during claim settlement.
How does Third-Party Car Insurance Work?
If a person meets an accident after taking third-party car insurance, the policyholder can raise a claim for the damage caused to a third party or his property. For claim settlement, the policyholder should inform the insurance company about the accident within the stipulated time as mentioned in the policy document and also furnish an FIR so the insurance company can take things forward. A surveyor will then be sent from the insurance provider’s end to assess the monetary damage caused and verify the same before sharing a detailed report with the insurance company. Based on the final report, the claim amount will be processed.
You can either call the representative you’ve been in touch with from the insurance provider’s side or simply email them on their official email id with the necessary details. Having a good insurance company by your side is important if you want faster claim settlement and excellent customer support. So take your time and do the due diligence before purchasing third-party insurance from any insurance provider.
Taking third-party car insurance from a trustworthy insurance provider will enable you to drive legally on the Indian roads without any worry of traffic penalties or fines and save you from unexpected and unavoidable out-of-pocket expenses in case of a road accident. With so many benefits on the table, you shouldn’t think twice before getting your vehicle insured.
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