Third-party car insurance is a type of coverage that helps protect you if you cause damage to someone else’s vehicle or property in an accident. It’s like a safety net for unexpected situations on the road. With third-party insurance, you’re covered for the costs of repairing the other person’s car or property, as well as any medical expenses for injuries they may sustain.
It’s a basic form of protection that keeps you from having to pay out of pocket for accidents you’re responsible for, giving you peace of mind while you’re out driving. With third-party auto insurance, you can protect the interests of the third party if they suffer financial losses due to the car accident you caused.
Features of Third-Party Car Insurance
Here are some of the features of this policy: It will help you understand what this policy is all about.
- This policy is compulsory. If you are caught without it, you may face legal complications that include penalties, fines, or even imprisonment in certain situations.
- If you purchase a new vehicle, this coverage must be bought for a continuous period of 3 years.
- For older cars, you can renew the coverage annually.
- The premium for this coverage is fixed across all insurance providers.
- The cost of this insurance is set by the Insurance Regulatory and Development Authority of India (IRDAI), based on your car’s size.
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- The IRDAI checks and may adjust these rates every year as needed.
Coverage Under Third-Party Car Insurance
A third-party car insurance plan helps cover costs if your car causes harm to others or damages their property. It pays for things like medical expenses or property repairs for others if you’re responsible for an accident. But if your own car gets damaged or lost, this insurance won’t pay for those expenses. It’s mainly to protect others from harm caused by your car.
What are the Insurance Benefits?
Having this coverage is very beneficial because of the following: Check them out.
- It provides legal protection from legal hassles.
- Very affordable, and the same process across insurers
- It offers protection against your driving license suspension.
- You can avoid penalties and legal fines since they fulfill the Motor Vehicles Act 1988 requirements.
You will be worry-free and will gain financial strength. Since you know that any third-party claim will be handled by this policy,.
Third-Party Car Insurance Claim Process
If you suffer a third-party claim, the following is the process for what you need to do:
- Inform your insurer instantly and register the claim.
- File a police complaint and give details of the claim. Ensure that you retain a copy of the FIR as required.
- The claim will now be directed to the Motor Accidents Claim Tribunal.
- The tribunal will then pass judgment on the claim amount that you need to pay to the third party for causing the accident.
- Inform your insurance company that the MACT has passed its judgment and filed a claim.
- The insurers will then go ahead and compensate the third party on your behalf.
To file a third-party claim, you will need to submit the below documents to your insurance company:
- A copy of the insurance policy
- A copy of the police FIR
- Your driving license copy
- Identity proof copy
- Any police reports
Is Third-Party Car Insurance Enough?
From a legal standpoint, third-party car insurance meets the requirements of the Motor Vehicles Act, which helps you avoid legal issues. However, in terms of coverage, it falls short. It doesn’t protect your car from damages caused by accidents or disasters, nor does it cover theft.
That’s why getting comprehensive car insurance is often recommended. It not only fulfills the legal obligations but also covers damages to your car and theft. With optional add-ons, you can enhance your coverage even more for complete protection.
Conclusion
Purchase the third-party policy today and fulfill your legal duty. With the help of this policy, you will have financial security in case of any third-party claim where compensation is needed. Also, you need to follow the rules made by the Motor Vehicles Act so that you can avoid penalties.
However, if you want inclusive scope coverage, you should go for a comprehension plan. Customize this plan with additional coverage for solid protection, and drive around without financial worry.