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Third Party Car Insurance – Quick Summary!

What is Car Insurance?

Car population in India has increased drastically over the past few years, reportedly Mumbai has 430 cars per square kilometre. If you own a car in India, then having a valid car insurance policy is a mandatory requirement as per the Motor Vehicles Act, 1988. Car insurance is also one of the popular categories of general insurance policies in India due to the increasing demand for cars and as per the law of the land.

Basically, car insurance is an agreement between the car owner and the car insurance companies. All car-owners in India are liable to buy car insurance and get car insurance renewal done every year to keep their cars legally running on the road. With the introduction of selling of car insurance policies online, it has become easier to buy and renew car insurance policy. Further, if you are looking for the best car insurance available in the market then you can compare car insurance online. After comparing the various plans available you can choose the best suited to your requirements.

In a car insurance policy, IDV is the most important factor. It is the maximum amount the insurer is liable to pay for your car. IDV largely determines the premium payable of your car insurance policy. The car insurance policy holder needs to pay for the car insurance upfront in order to buy car insurance.

What is Third party Car Insurance?

The name says it all, third party car insurance safeguards you against liabilities that may arise from damage to the third party as a result of an accident or collision. Third party here means someone who is other than the insurance company and the policy holder, be it a pedestrian or person travelling in another vehicle.

What is the coverage of third party Car Insurance Policy?

The third party fundamentally covers your legal liability and damages payable to the third party by you while using your car which is involved in an unfortunate accident. It also covers death and other bodily injury to the third party. However, the cover for the third party property damage is limited to the maximum amount of INR 7.5 lakhs. Any amount that may rise over and above the upper limit has to be borne by the third party car insurance policy holder himself.

What are the benefits of a third party Car Insurance Policy?

  • Third party car insurance is the minimum car insurance coverage requirement in India. This means having a valid third party car insurance makes your car legal to run on Indian roads.
  • Third party car insurance reduces the financial stress of expenses towards repairing the vehicle or any compensation to be paid to the third party.
  • It saves you from paying a huge amount on medical expenses in case the driver or passenger from the other vehicle get any serious injuries.
  • Third party car insurance is the cheapest form of car insurance available in the market.

Claim Process of Third Party Car Insurance

Below is the process flow for a third-party car insurance claim if you ever get in an unfortunate accident:

  • Lodge a complaint and file an FIR with the Police.
  • The case gets registered in the Motor Accident Claims Tribunal which comes under the jurisdiction of the area where the accident took place or over the area where the claimant or policyholder resides.
  • Court will conduct the hearing to scrutinize the evidence.
  • Court will decide on the liability that arises of the accident.
  • Basis the court order, the car insurance company will compensate the loss if the decision comes in third party’s favour.

To conclude on third party car insurance, this policy is for people who want to buy car insurance as it is mandatory to have one. The other reason to purchase this is that you have a very old car or a low priced car model and itwould be easy and cheaper to get the car repaired on your own rather than paying a heavy price on premiums for a comprehensive car insurance plan. Third party car insurance comes at a minimal cost and affordable premium rate but you get what you pay for. You can decide for yourself if you need a comprehensive cover or third party car insurance is sufficient for your current requirement.

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