1 MO ago

Third Party Car Insurance: What Should You Know?

If you have a car of your own, you will need to insure it. There are two types of motor insurance covers available. They are the comprehensive cover and the third party cover. According to the Motor Vehicles Act of 1988, it is mandatory for every vehicle owner to have a third party cover. But what exactly is covered under such a plan?

Understanding a third party car insurance policy

Let us begin by understanding how a third party cover works. Let’s assume your vehicle is involved in an accident with another vehicle. Due to the accident, there is a large dent on the other car and the driver is seriously injured too. Angered by the events, the driver not only demands compensation for the damages and injuries, he also informs you he will pursue the matter legally. You are forced to reimburse him for the damages and you also have to hire a lawyer and pay the legal costs.

If you have a third party car insurance plan, all the above mentioned costs will be covered by the insurer. This is the beauty of a third party motor insurance plan!

Inclusions and exclusions under a third party plan:

A third party plan has provisions only for the third party expenses. Your own car is not covered under such a plan and so you will have to bear the costs of repairing your own vehicle after an accident. Neither will it pay for the substances missing or damaged in the car.

Then, a third party cover doesn’t compensate for any losses that trigger out of wars, hate crimes and other man-made disasters. It also doesn’t pay for natural disasters such as damages due to flooding, earthquake, etc. It also doesn’t cover any incidents/ damage occurred outside the mentioned geographical area, any liabilities due to radioactive contamination or nuclear weapons, if your car was being rider by someone other than the owner or the registered or designated driver.

Personal accident cover for owner-driver

In case of an accident, if the owner-driver of the car suffers any bodily injuries or death, is compensated by the third-party car insurance. The below chart will explain the limits well:

Nature of Injury

Scale of Compensation

Death

100%

Loss of limbs or sight of two eyes or one limb or sight of one eye

100%

Loss of one limb or sight of one eye

50%

Permanent total disablement from injuries other than the above

100%

Opting for a third party car insurance plan

A third party car insurance plan offers you the basic cover that you need. However, the scope of cover is limited. So buy the plan if:

  • You are confident of your driving skills and feel you won’t be involved in too many road mishaps.
  • You are financially able to handle the expenses related to your vehicle repairs.
  • You don’t drive your car too much as it is old and you plan to sell it off soon.
  • The car is not your primary vehicle and is seldom driven.
  • You want to save money on your motor insurance expenses.

Buying a third party cover:

It is very easy to buy or even renew your third party car insurance plan. You can do it online in just a few minutes. The process is paperless and involves very few formalities. You can also go online and run a comparative check on the available options to find the most economic plan. Look for the features of the plans when comparing them and also look at the credibility of the insurance providers.

Conclusion

A third party car insurance plan has many benefits. If you feel this is the correct type of motor insurance for you, go right ahead and buy a good third party car insurance plan. However, it is advisable to opt for a comprehensive car insurance policy if you want to get covered completely. There are many good plans available from the top Indian insurance companies. Get the best plan and keep your finances protected.