Third-party motor insurance is a major need in India under the provision of the Motor Vehicle Act, 1988. As the name says the main benefit of the policy is the 'third party'. Third-party here means someone who is other than the policyholder and the insurance company- be it a person traveling in another vehicle or pedestrian. A third-party insurance policy generally covers your legal liability for the damages caused to the third party by you by utilizing your car. It covers bodily injury or death to a third party and damages to third party belongings. There is no upper limit on the liability cover for death and bodily injury. However, cover for third party property damage is restricted to the maximum amount of Rs. 7.5 lac. Any amount above and over the upper limit has to be borne by the policyholder.
How Does The Third-Party Vehicle Insurance Work?
Firstly, you will have to inform the insurance company about any damage. This may be done by contacting the customer care number. In most cases, the insurance company arranges for the vehicle to be towed to the nearest garage. While claiming, you will have to give the listed documents:
Duly signed claim formFirst information report (FIR) copyPolicy documentCopy of the driving license
Copy of the registration certificate (RC)
Many car owners need to know, “Is
third party car insurance mandatory?" According to the Motor Vehicle Act, 1988 anyone who owns buys, or drives a vehicle must buy such kind of insurance coverage. Plus, such coverage is mostly an element within the primary motor insurance policy.
Benefits of third party motor insurance
Legal coverage and financial assistance
This kind of vehicle insurance covers your legal liability in case of death or disability to any third party. Plus, it protects you against loss or damages occurring to the property of third parties. The benefit of this policy is the injured third party. Nonetheless, you are protected against the financial and legal liability that may lead to any third party.
Peace of mind
Such kinds of motor insurance policies give peace of mind during complicated instances that are majorly financial in nature. You are prevented from going through any financial stress and may concentrate on coping with the incident and prevent being stressed.
Quick and easy process
You may think about how to achieve third party car insurance or
third party bike insurance. The complete method is simple and quick and completed in a very short time. You may buy the policy online according to your convenience.
Affordable Coverage
Few individuals may think, “Is third party car insurance worth the investment?" This coverage has to be the most needed policy. The premium paid for this cover is not massive and should be availed of.
The coverage and premium may differ from one insurer to another. It relies on the variant, model, and make of the car. It is suggested you compare various options before making your selection.