Third Party Car Insurance & Its Benefits

Third party car insurance is a mandatory cover required as per the Motor Vehicles Act, 1988 for anybody owning, buying or driving a motor vehicle. The third party car insurance cover or liability cover is a policy which protects the car owner or driver of the vehicle against any legal liability, accidental liability, financial loss or property damage, medical expense cover in the event of an injury to or even death of any third party arising out of their vehicle.

Since the third party car insurance plan is legally mandatory in India, it is usually a part of the main car insurance policy. In addition, a separate comprehensive car insurance policy may be added onto a standalone third party car insurance policy.

Many insurance service providers also offer a personal accident cover with their third party car insurance plans. Along with personal accident cover, some companies also render further coverage for collisions (where insurer pays the insured for damage caused by collision which is usually an accident), and comprehensive coverage with enhancements such as accessories cover, engine protection, zero depreciation cover, etc.

Benefits of Third Party Car Insurance Policies are:

Provides Legal Cover and Financial Assistance:

Third party car insurance policy covers the insured person’s legal liability in case  of death or disability to any third party, and any loss or damage to a third party property. The legal and financial burden is taken care of in such a scenario. Though the direct beneficiary is neither the insurer nor the insurance company, but a third party, it is the most essential benefit a third party car insurance secures for the driver/owner of the motor vehicle involved in such circumstances.

Ensures Peace of Mind:

Third party car insurance policies bring peace of mind when dealing with traumatic situation that completely hinges on financial payments. Hence, instead of worrying further about such unforeseen expenses, the focus is just on the immediate relief from stress and coping up with the incident.

Easy and Fast Process to Procure Third Party Car Insurance:"> 

Third party car insurance policies are easily accessible and easy to buy or renew. They can also be bought or renewed online, which is a fairly quick and simple process to fulfill when opting for the third party car insurance. Hence, it can easily be availed by anyone as per their time and convenience.

You may also like to Read: Third party Liability Insurance for Cars

Cost-Effective and Beneficial to the Insurer in Any Unforeseen Event: 

The inclusion of third party vehicle liability insurance component in the overall car insurance policy, as either an add-on or an essential part of the main plan, is extremely cost-effective and beneficial in terms of financial costs and premiums. Also, when calculating the compensation, the evaluation is done on the income of the insurer.

Easy Round the Clock Availability of Third Party Car Insurance:  

Unlike other policies that are limited to only the traditional offline method of renewal or application, Third party car insurance policies or renewal of the policy is easily available online round-the-clock, that is, 24x7, 365 days a year from any location. Hence, the easy accessibility and mobility makes this so popular.

Read More-: Top Car Insurance Companies in India

Therefore, third party car insurance policy premiums and claim covers may vary from policy to policy, company to company. In fact, it may also be determined on the make/model/variant of the motor vehicle in question.

There’s no denying the legal, financial and mental peace offered by third party insurance to those owning, driving or buying a new car. This insurance saves them against all possible hassles that may arise out of any unforeseen circumstances.

We’re sure now you understand why it is so important to invest in a third party car insurance. Remember, this is the best way to gain comprehensive coverage against losses that you might incur if your car gets damaged or stolen, or causes injury, death and damage to third party or third party property.

Written By: PolicyBazaar - Updated: 08 February 2021
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