Regarding car insurance, most Indian car owners know the importance of having a third-party liability cover. After all, it’s the minimum legal requirement for car owners in India and a must-have if you want to drive your car without being fined or being made liable for the damage caused to other people’s cars due to an accident. But do you understand the importance of having third-party car insurance online in India and how it works?
Given its paramount importance, let’s look at third-party motor insurance policies in India. We’ll talk about what it is, how it works, what it covers, why you need it, and more. By the end of this article, you should better understand why third-party motor insurance is so important for any Indian car owner.
What Is Third-Party Car Insurance?
This insurance policy covers you from any third-party liabilities and is the most basic type of car insurance policy available in India. If you get into an accident and are legally liable for damages and/or injuries to other people or property, your third-party car insurance online policy will provide coverage.
It’s important to note that third-party insurance does not cover any damages to your own vehicle. That’s why it’s important also to have a comprehensive car insurance policy in place that will provide coverage for both third-party liability and own damage.
Buying a third-party car insurance policy is mandatory in India per the Motor Vehicles Act 1988. It’s valid for one year, after which it must be renewed annually. If you don’t have a valid car insurance policy, you’ll be liable for paying compensation from your pocket if you get into an accident with another vehicle.
Why Is Third-Party Car Insurance Necessary in India?
A third-party motor insurance policy is an important form of car insurance that protects you, your vehicle, and others from any financial losses caused by a road mishap. In India, it is mandatory to have third-party car insurance to drive on the roads legally. It provides a financial security blanket that could help you escape difficult situations if you ever need it.
Here are some of the reasons why third-party car insurance is necessary in India:
- Covers Financial Liability – Third-party car insurance covers any financial liabilities that may arise due to damage caused to third-party property or injury caused to them. This type of coverage helps protect you from financial losses caused by an accident that was your fault.
- Compulsory By Law – According to the Motor Vehicles Act 1988, every vehicle on Indian roads must possess a valid third-party car insurance policy. The penalty for not having one could range from a fine to jail time, depending on the offense’s severity.
- Coverage For Court Cases – In case of an accident, if it goes up to court-level proceedings, this type of coverage will help cover all legal fees arising from such proceedings.
- Protects Your Car From Damage – Third-party car insurance also covers damage caused by natural disasters like fire or floods. It also covers theft and vandalism damages, which may occur due to theft or malicious intent.
By investing in a good third-party car insurance policy, you are ensuring that you and your vehicle are protected in case of any unforeseen circumstances
What Does Third-Party Car Insurance Cover?
Having third-party car insurance is an important part of responsible car ownership in India. But what does a third-party car insurance cover, exactly?
Third-party insurance protects you against any losses or damages arising from an accident involving your vehicle and another vehicle or person. Third-party coverage pays for the other person’s expenses due to injury or property damage from an accident. It also covers any legal liability you might incur from the accident.
In other words, a third-party car insurance policy covers three main things:
- Third-Party Bodily Injury Liability: This provides coverage for any bodily injuries that the other party incurs in an accident involving your vehicle.
- Third-Party Property Damage Liability: This type of coverage pays for damage to another person’s property, such as their car or home, due to an accident with your vehicle.
- Personal Injury Protection (PIP): This offers coverage for medical bills related to injuries sustained by you, your passengers, and/or family members during an accident involving your vehicle.
It’s important to note that third-party car insurance does not cover physical damage to your vehicle and other costs associated with such damage (such as repair or loss of use). You will need comprehensive insurance for this type of coverage of your policy.
What Are the Advantages of Buying Third-Party Car Insurance?
Regarding car insurance, you might be wondering why it’s worth investing in third-party cover. Third-party car insurance is a smart way to financially protect your vehicle and yourself in case of an accident. Here are some of the advantages of choosing third-party coverage:
Third-party insurance comes with lower premiums than comprehensive policies, making it more affordable for the everyday motorist. As you only cover the damage to the other party’s vehicle, you share some responsibility for repairs. This leads to lower risk and, therefore, more affordable premiums.
Peace Of Mind
Arguably most importantly, third-party insurance gives you peace of mind in knowing that if you are involved in an accident, and there is damage or injury to another person’s property or body, your insurer will cover a certain amount of costs associated with that.
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Mandatory In India
It’s also important to note that third-party insurance is mandatory in India for all vehicles registered within the country. That means that legally, you must have car insurance coverage before your car can be driven on public roads – so why not go for third-party cover?
With a comprehensive, third-party car insurance online policy and a few add-ons, you’ll have fairly robust coverage against mishaps on the road – so make sure to do your research before deciding what kind of policy will best meet your needs.
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