What Is Covered Under Third Party Car Insurance Policy?
- Details Written by PolicyBazaar -
Updated 04 September 2019
Every car owner must buy a third party car insurance policy to ensure proper protection against unnecessary expenses arising from the medical treatment, property damage or a financial loss, accidental or legal liability from the end of a third party. Various reputed insurance providers in the country have come forward with effective third-party insurance plans to provide coverage to individuals against such incidents.
What is Third-Party Car Insurance?
In simple words, it is an insurance policy that protects you from legal liabilities, which may arise in case of an accident. Suppose you hit someone’s car and caused them severe damages. In that case, your insurer will bear the expenses and/or liabilities arising from such an eventuality.
Third-Party Car Insurance Policy is Mandatory in India
Yes, it is true that third-party car insurance is mandatory in India. When you buy a new car, it is mandatory for you to buy a car insurance plan too. According to the Motor Vehicle Act, 1988, if you are driving a car on Indian roads without a valid insurance plan, then you may face serious legal issues. So, the best thing is to avail at least a third-party insurance plan for your car.
What is Included in a Third-Party Car Insurance Plan?
Now, you must be thinking about the inclusions in third-party car insurance. Under a third-party policy, the insurer covers the liabilities, in case the policyholder is responsible for any injury or loss to a third party.
The insured person is termed as first party, the insurer or the insurance provider is termed as second party, and the person who is injured is considered as third party.
When you buy a car insurance plan, remember to compare multiple plans online. To know the inclusions of third-party insurance in details, let’s have a thorough look at the coverage offered by this policy:
- Property Damage: In case you have caused severe damage to the property of a third party in an unfortunate accident, then you don’t need to worry about the expense arising from the mishap. Third-party insurance ensures that the insurer will pay for the damages to the third-party. Thus, the insured can safely step out of the complicated situations of accidents.
- Death: If you are involved in an accident, which leads to the death of a third party, then you are solely responsible for the unfortunate loss that nothing can make up for. In such cases, you do not have to worry, as your insurer has got your back. Whenever there is a death situation, the claims are judged as per the court tribunals. The court determines the compensation as per the consequences of unfortunate loss and earning capability of the third party.
- Partial and Permanent Disability: Sometimes, accidents lead to disability. If the third party is subjected to partial disablement like fractures and other disablements, which can be recovered with time, then the insurer offers necessary coverage in terms of medical expenses to the affected individual(s). But, if the third party is subjected to permanent disablement, then the insurer offers a pre-assured sum to the third party.
- Bodily Injuries: No matter how intense the injuries of a third party are, medical coverage is offered for all types of bodily injuries. Reputed insurance companies understand that the accidents are caused unfortunately and these events cannot be controlled. Thus, insurers effectively reduce the stress of the insured by offering them the financial support
So, these are the benefits included in third-party insurance. The above coverage offers great benefits to the insured during accidents or other inconveniences. However, this is just the tip of the iceberg. You can read our previously published article to know more about benefits of third-party insurance. Regardless, here are a few benefits:
What more does Third-party Car Insurance Cover?
- Financial and Legal Assistance: After availing third-party insurance for your car, you do not need to worry about those legal issues associated with accidents. Remember, a third-party insurance policy defends you securely in case of accidents. You will not be subjected to any of those court tribunals if you have got a valid third-party car insurance policy. Apart from that, this policy covers you for expenses associated with the recovery of the loss of a third party.
- Cost-Effectiveness: If you think, third-party insurance policies are costly, you are wrong. Look, the insurance premiums are specifically designed as per the comfort of all categories of vehicle owners. The premium you have to pay is subject to the model and engine capacity of your vehicle As compared to a comprehensive car insurance policy, the premiums of a third-party insurance policy is quite low.
- Online Procurement Procedures: To buy a third-party insurance plan for your car, you do not need to visit the official premises of any insurer, as insurance plans can be availed online. Insurance companies have dedicated web-based insurance portals to ensure proper plans to the vehicle owners. You can simply log in, browse insurance plans and can choose the best one according to your requirements.
Recommendations for Third-Party Car Insurance Policy Companies
At present, there are so many companies that offer car insurance policies. It is highly recommended to avail services only from reputed companies. Or else, your money will be wasted. To avoid confusion while buying a car insurance policy, here we have mentioned some reputed insurance companies and their services. You need to compare car insurance policies offered by these service providers and should choose accordingly:
- Bajaj Allianz General Insurance Co. Ltd.: Bajaj Allianz is termed as the most customer-friendly insurance company in India, as it greatly aims to satisfy the customers with its feature-rich policies and cashless claim settlements. Apart from that, it offers door-step surveyor facility to reduce the doubts of car owners. You can easily purchase Bajaj Allianz car insurance through online EMIs. It has tied up with more than 1500 garages and thus ensures cashless settlements without any hassle.
- TATA AIG General Insurance Co. Ltd.: This insurance service provider is known for its hassle-free claims and services. You will find the network garages of TATA AIG all over India. Again, because of experienced claim settlers, it manages to settle the claims within seven days only. To enhance the effectiveness of insurance policies, TATA AIG offers unique add-ons with its car insurance plans. It offers a warranty on every repairing. Thus, there is no need to worry about further servicing.
- The Oriental Insurance Co. Ltd.: This insurance company is owned by the Central Government of India. Thus, it is termed as one of the most reliable insurance firms in the country. Apart from that, Oriental Insurance is highly known for its fast claim settlement procedure and high claim settlement ratio. Indeed, you don’t need to worry about your claim. You can directly interact with the claim settlers and can express your issues. Oriental car insurance also offers valuable add-ons to the third-party insurance plans.
- Bharti AXA Insurance: If you compare car insurance policies in India, chances are high that you find Bharti AXA car insurance offering policies at the lowest premiums. This is the main reason why car owners greatly appreciate the services of Bharti AXA. Apart from that, it offers necessary inclusions with the policies, which are pretty necessary for vehicle owners. It has 2500 + network garages across India so that you do not face any difficulties at the time of claims.
- HDFC ERGO General Insurance Co. Ltd.: The insurance policies of HDFC ERGO car insurance are specifically designed as per the requirements of customers. The main attraction of this insurance service provider is that it offers special discounts based on the age and profession of the first party. Again, you do not need to worry about the typical documentation involved with an insurance policy, as the online procedure ensures zero documentation. For the convenience of its customers, it has arranged a dedicated customer support team.
There are many other insurance service providers in India, which offer car insurance policies. You need to compare car insurance policies keenly to ensure the best for yourself. So, start your communication with the executives of reputed insurance providers today and grab more and more information regarding third-party Car insurance policy.
From the above discussion regarding the third-party insurance plan, it supports low premiums, no-Fault liability and covers bodily injury, property damage, and even the death of a third party.
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