When it comes to car insurance, third-party insurance is a term that you come across often.
Third-party insurance is a mandatory requirement under Indian laws, and it covers all legal and accidental liabilities, and property damage as well, caused by accidents. Since it is a legal requirement, most insurance service providers offer third-party insurance as part of car insurance policies they issue.
However, some may also offer it on standalone basis, which is helpful for those who own multiple vehicles and don't want comprehensive car insurance for each of them.
Read on to find out more about third-party car insurance benefits and how it works.
Advantages of third-party insurance
The most significant benefit of third-party insurance is, of course, the peace of mind. When you have such an insurance policy, you don’t have to constantly worry about any financial stress in case your car meets with an accident and suffers or causes damages. It protects you from legal or financial liabilities in such cases which can be a major cause for concern. These insurance plans offer unlimited coverage for injuries suffered by third parties, although third-party property damage is capped.
Third-party insurances also work out to be cost-effective if it is included as an add-on policy to the car insurance plan. The claim settlement process of third-party insurance is smooth too. These policies are readily available for purchase online, and you can get one in just a few minutes.
One of the biggest third-party insurance benefits is that the coverage provided takes care of your obligation as a vehicle owner under the law. The third party who suffers from any injury or losses due to an accident caused by your vehicle can benefit from the insurance.
How does third-party vehicle insurance work?
In case of accident and subsequent damage, immediately inform the insurer. The insurer will either provide roadside assistance or ask you to take the car to the nearest garage for an assessment of damages. Some insurers also assign a surveyor to carry out the evaluation and work out the costs based on the surveyor’s report.
You will also need to provide the following documents at the time of raising a claim:
A copy of your driving licence
Filled up and signed claim form of the insurer
A copy of the policy document
A copy of the FIR filed with the police
A copy of the Registration Certificate of the car
Once the assessment is done and the insurer processes your claim, they will take care of all the follow-up paperwork and logistics. For instance, if an attorney has to be hired for legal verification, the insurance company will arrange for the same.
Since the coverage is unlimited in case of any injuries to a third party or death, the insurance company will pay up the amount once your claim is processed successfully.
Are there any exclusions to third-party insurance?
Yes. The standard exclusions include:
If the driver was drunk at the time of the accident
If the driver was underage or driving without a valid license
If the accident was deliberate
The car was being used for illegal activities
The car is stolen
A third-party car insurance is a requirement under law that you cannot avoid. Therefore, having a vehicle insurance policy is extremely important for safeguarding your car in case it suffers any damages.
A car insurance policy with adequate coverage ensures that no one faces undue financial losses on account of any accidents. Given the affordable premium offered by most insurers for a third-party insurance policy, make sure that you add it to your comprehensive car insurance policy for better protection and peace of mind.
Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.