Third-party Fire & Theft Insurance Policy In Motor Insurance

Purchasing a car is no less than an accomplishment. However, it does not end here. When you invest a big chunk of your savings into purchasing a car, it becomes your responsibility to protect it. It is mandatory to purchase a third-party insurance policy for your car in India. However, if you do not want to purchase a comprehensive insurance policy, you have the option of a third-party theft & fire insurance policy. So, what is a third-party fire and theft insurance policy?

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Protection Against Third-party Theft & Fire

The third-party theft & fire insurance policy is specially designed for car owners who do not want a comprehensive cover but particularly want to cover their car against fire accidents and theft. However, it will still not cover you for own damages that occurred in an accident. But there are certain things it will cover if the accident took place because of you:

  • In case the driver of the other car gets injured
  • Another car’s damage
  • Another person’s property damage

If the accident happened because of another driver’s fault then their car insurance policy will provide cover for all the damage caused to you.

Third-party fire and theft insurance policy provides cover for an attempted theft that led to damage to your car such as broken windows.

There are chances that your claim might get denied by the car insurance company. Here are some reasons:

  • In case your car gets damaged due to a fire accident that happened because of an electrical or mechanical breakdown
  • You meet an accident in a car that is not listed in your policy

How Is Third-Party, Fire & Theft Insurance Different From Third-Party Insurance?

As the name suggests, a third-party fire and theft insurance policy provides you cover for third-party liabilities as well as loss or damage caused in a fire accident or the car gets stolen. Whereas third-party insurance will only provide cover for the third-party liabilities.

How Is Third-Party, Fire & Theft Insurance Different From Comprehensive Insurance?

A comprehensive insurance plan provides overall coverage. It provides cover for the third-party liability as well as your own damages. Be it car theft, fire, natural calamity, comprehensive insurance cover it all. Also, it is costlier than the third-party fire & theft insurance plan. This is how it differs from the third-party fire & theft plan.

Things To Consider Before Purchasing Third-party Theft & Fire Policy

Purchasing a car means purchasing an added responsibility. When you purchase a car you consider several things like your budget, what kind of car you want, horsepower, and if the car meets your requirements, etc. Similarly, while purchasing an insurance policy you need to consider several things. Here are the things that you need to consider while purchasing a third-party, fire and theft plan.

  • This policyprovides cover for third-party liabilities
  • Fire and theft is covered
  • It does not provide cover for own damages
  • Slightly expensive than third-party policy
  • Compare different plans online and then purchase the right one
  • Purchase it if you do not drive your car very often
  • Purchase it if you are a skilled driver and less likely to meet an accident

Conditions Under Which Third-Party Fire & Theft Insurance Does Not Provide Cover

Just like it is important to know the things your policy covers, it is important that you take a look at the list of the things this policy does not provide cover. Here is a list of things it does not cover:

  • If the driver does not have a valid driving license when the accident takes place
  • If the car is used in illegal activity
  • You own damages, bodily injury, death as well as the passengers in the vehicle
  • Loss or damage caused to your car in a war or war-like situation
  • Loss or damage caused by an act of terrorism
  • If the driver is found under the influence of alcohol or drugs when the accident took place

Cost Of Third-Party, Theft & Fire Insurance

It is like a balanced option for the car owner to purchase this insurance policy. This insurance policy comes at a cost that is expensive than a third party and less costly than a comprehensive insurance policy. However, it is important that you check the value of the different insurance policys.

If you want to purchase this plan at a lower price then it will be better that you make the payment in one go instead of paying it in monthly installments. If you pay for the plan on a monthly basis then it is most likely to increase the interest rate of the plan by up to 20%.

Wrapping It Up

It would be a good idea for you to purchase this insurance plan if you do not drive your car often. It is a cost-effective insurance plan and purchasing it online would make it even more cost-effective. When you purchase an insurance plan online, you can compare different plans and at one place without going anywhere. You also get to learn about the insurance plan in detail and calculate the premium using online premium calculator.

Written By: PolicyBazaar - Updated: 23 September 2021
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