Covering the losses of a third party after getting into a collision with them can be quite difficult to do. Getting car insurance covers your car in times of collision, accidents, and so on, but it does not cover third-party losses. In a case where your vehicle causes damage to a third-party car, you will need to get third-party car insurance coverage.
Third-party car insurance covers the losses of a third party after getting into a collision with them. It covers the repayment for damages or bodily injuries incurred during the process. This car insurance covers the legal accountabilities a policyholder faces during third-party losses. It also covers the financial losses and compensates the third party after the damages are made.
What are the Features
You should be aware of some features of the third-party car insurance policy. These features are:
- It is compulsory to get third-party car insurance coverage. If you are discovered to not have one, there are legal complications such as penalties and fines, and in extreme cases, you may be imprisoned.
- After purchasing a new car, you are required to buy a third-party plan coverage for 3 years continuously. This is also compulsory for you to do.
- If you make use of an old car, you will need to annually get third-party coverage.
- . This, however, depends on the car’s cubic capacity.
- The third-party car insurance premiums are the same with all insurance companies.
- Annually, the premium coverage is reviewed by the IRDAI, and changes are made if required.
Having these features in mind should keep you on the right track with third-party car coverage.
What Does it Cover?
Third-party insurance covers a policyholder in times of financial accountability. It covers the policyholder in cases of:
- Bodily injury to a third party.
- Death of a third party.
- Property damage of a third party.
In the occurrence of any of these situations, the third-party coverage will cover all the financial accountabilities and compensation. Unfortunately, your car damages do not get covered under this insurance policy. You will have to suffer the financial cost or get covered by a different car insurance policy if you have any over your car.
Third-Party Car Insurance Limits
There is no limit on third-party car insurance in cases of bodily injuries or death. This insurance has no limits to the coverage it gives. Third-party car coverage does make compensation payments as requested by the Motor Accidents Claim Tribunal (MACT). However, in cases of property damage, there is a limited amount of coverage offered. If the claim is above the maximum limit, the policyholder would have to pay the excess out of pocket.
What is not Covered?
Instances that occur due to some illegal processes are not covered under third-party car coverage. Instances that occur due to:
- Occurrences outside the boundaries of India will not be covered.
- Driving without a justifiable license.
- Criminal acts.
- Drinking while driving.
These occurrences are not covered under third-party car coverage. These acts, however, have legal consequences.
Third-Party Car Insurance Premiums
Just as its features say, third-party car coverage premiums are set by the IRDAI. This insurance premium depends on:
- The car type.
- Modifications of the car.
- Cubic competence of the car.
- Policy terms.
- Available discounts.
These are used to determine third-party insurance premiums.
How to File a Third-Party Car Insurance Claim
After an incident with a third party, you will need to file a claim for the process to kick off. Using the following steps, you will be able to file a claim in no time.
- Immediately after the incident, notify your insurance company, then register for a claim.
- Organize a police FIR giving full details on the claim. Ensure you secure a copy of the FIR because it will be required during your claim filing with your insurance company.
- Your claim will then be taken to the MACT. Here judgments will be passed concerning the amount of the claim to be paid to the third party.
- Immediately judgments are passed by the Motor Accidents Claim Tribunal (MACT); notify your insurance company, and then begin with the filing of your third-party claim.
- After this, your insurance company would then begin with the compensation to the third party on your behalf.
At the end of this process, the third party would be compensated, and every damage made would be covered by your insurance company.
What are the Documents I need to file a Third-Party Car Insurance Claim?
To file a third-party car coverage claim, you need to provide the following documents.
- A copy of the police FIR.
- Your identity proof.
- A police report.
- Your signed and filled form.
- Copy of your third-party insurance claim.
- Driver’s license copy.
Ensure these documents are complete before proceeding with the filing of your third-party insurance claim.
Benefits of Third-Party Car Insurance
Some of the benefits of the third-party car insurance include:
- You get to avoid legal penalties and fines because this insurance coverage attains the requirements of the Motor Vehicle Act.
- Third-party car insurance premiums are affordable and are the same overall as insurers.
- It offers protection over suspensions of driver’s licenses.
- Legal protection from time-consuming legal difficulties is provided by third-party car insurance.
Financial security is attained knowing that any third-party claim has been handled by this policy.
