Your vehicle is not only a symbol of your freedom, but also an important part of your daily life. But have you ever wondered what will happen if your vehicle causes harm to someone else? So let’s know in detail about third-party car insurance in this post.
What is third-party car insurance?
Third-party car insurance pays for damage your vehicle causes to others. This loss may include bodily injury, death, or property damage.
Why is third-party car insurance necessary?
- Legal rule: Third-party car insurance is mandatory for driving in India. Driving without insurance can lead to heavy fines and legal action.
- Financial security: If someone is harmed by your vehicle, you may have to pay a huge compensation. Third-party insurance protects you from this financial burden.
- Peace of mind: It feels good to know that your liability is reduced if your vehicle harms someone.
What does third-party car insurance cover?
- Bodily injury: If your vehicle injures someone, the insurance will pay their medical bills.
- Death: If someone dies, the insurance company will pay the family.
- If your vehicle damages someone’s property, the insurance will pay for it.
Types of Third-Party Car Insurance
- Motor Third Party Legal Liability (MTPL) Policy: It is the most basic third-party insurance. It only covers damage caused to third parties.
- Personal Accident Cover (PAC): This optional cover pays for death or permanent disability from an accident to the driver and passengers.
How does third-party car insurance work?
- Accident: If your vehicle injures someone, inform the police. Then, report the claim to your insurance company.
- Claim Process: The insurance company will appoint a surveyor to assess the damage.
- Compensation: The insurance company will compensate the third party.
What to keep in mind while buying third-party car insurance?
- Limit of coverage: Make sure that the coverage limit of your policy is adequate.
- Claim settlement record: Check the claim settlement record of the insurance company.
- Add-on covers: You can add covers to your policy, like personal accident and roadside help.
- Compare premiums: Get quotes from different insurance companies and compare.
A true story: How third-party car insurance saved a family
Once a family was going somewhere by car. Suddenly, an uncontrolled truck hit their car. The car was badly damaged in the accident, and the family members also got injured. But, the family’s valid third-party car insurance covered the costs. So, the insurance company paid the medical expenses and car repairs. In this way, third-party car insurance saved the family from a major financial crisis.
Conclusion
Third-party car insurance is legally required. It’s also vital for your finances and peace of mind. So, don’t forget to insure your vehicle. Remember, the roads may be dangerous, but not your car if you have the right insurance.
FAQs: Third-Party Car Insurance
1. What is third-party car insurance?
Third-party car insurance is a type of motor policy. It covers damage to a third party’s property or injury in an accident. It’s essential for legal compliance and financial protection.
2. Why is third-party car insurance mandatory?
In India, it is mandatory to have at least third-party car insurance to drive legally. This covers any damages or injuries caused by your vehicle. It protects you from major financial liabilities.
3. What Does Third-Party Car Insurance Cover?
Third-party car insurance typically covers the following:
- Bodily injury: medical expenses, hospital costs, and loss of income or life.
- Property damage: Repair costs for damaged vehicles, buildings, or other properties.
- Legal costs: Defense costs in case of legal proceedings.
4. What Does Third Party Car Insurance Not Cover?
Third-party insurance does not cover damages to your own vehicle. For this, you’ll need comprehensive car insurance.
5. How to Choose the Right Third Party Car Insurance Policy?
Consider the following factors when choosing a policy:
- Coverage: Ensure the policy offers adequate coverage for your needs.
- Insurer’s reputation: Choose a reputable insurer with a good claims record.
- Premium: Compare premiums from different insurers to find the best deal.
- Add-on covers: Consider additional covers like personal accident cover or roadside assistance.